Results boost for AMEC
15 Jan 2000
Last year marked an upturn in fortunes for contracting conglomerate AMEC, with a 37 per cent increase in operating profit on turnover holding steady at £3.4billion. The process and energy (APEL) sector turned in a particularly strong performance; the only major blight to the figures was the US-based construction management operation Morse Diesel.
Turnover for the capital projects operations of APEL slipped by 28 per cent to £320million, according to chief executive Peter Mason; this was mostly due to a reduced throughput of materials and equipment, and also reflects a reduction in offshore capital investment in the North Sea. Onshore work remained more stable, and also improved margins for the group, said Mason.
The onshore division has also won some important contracts over the past few months, said Mason, which has offset some uncertainties in the prospects for offshore workload this year. `The action that was taken in 1996 to restructure the fabrication activities will minimise the financial impact of any further rationalisation,' he added.
Strategy for the coming year is being bolstered by current trends such as utilities outsourcing, said Mason. `In addition to work secured this year for Yorkshire Water, the group has secured a contract from Scottish Power - the first of its kind covering three multi-utility projects: gas, water and telecom systems in Scotland, England and Wales worth £20million,' said Mason.
