GY-focused engineering firm Amec Foster Wheeler failed to escape the ongoing rout in oil unscathed, as results released yesterday showed profits tumbling.
The company said it faced significant currency headwinds in 2014, but growth in emerging markets and its clean energy sector saw revenues up two per cent to £3.9bn. But success in these areas was not enough for the company to offset the costs of a $3.2bn (£2.1bn) merger between UK’s Amec and Swiss Foster Wheeler and a 13 per cent decline in oil and gas revenues.
In addition, the firm said it expected trading margins to weaken in the coming year as clients continue to press for lower prices in the face of the ongoing volatility in oil markets.
The result was a 39 per cent slump in profits to £155m compared to the previous year. Chief executive Samir Brikho commenting on the results said: “I am pleased to report that we have delivered 2014 results in line with expectations. Looking ahead, I believe our low-risk, multi-market model is a strong platform from which to create long-term value for shareholders.”
Although the results were in line, investors were left disappointed, with shares closing down 2.31 per cent at 950.50p per share.