Amec to create energy and process industries business

London -- Amec is restructuring its operations into two businesses: energy and process industries; and UK infrastructure.

The change will follow the sale of its Amec Spie business, announced in November and which is expected to be completed mid-year. According to chief executive Sir Peter Mason, the separation of the remaining activities will allow Amec to capitalise on the profitability and growth opportunities in the energy and process markets. At the same time the company hopes to turnaround its construction activities.

The proposed restructuring was announced as Amec unveiled pre-tax profits, after exceptional items, of £25.4 million on revenues of £4.9 billion. Oil and gas profits leapt 25%, engineering and technical services rose 18% and the value of the PPP portfolio improved 42%, to £109m. However performance in UK construction was deemed “poor” and in future will concentrate on design-and-build activities.

In 2006 Amec sees positive developments in European multi-technical and environmental businesses and recovery in North American industrial markets. These will offset a significant reduction in its activities in Iraq.