Amec still on the acquisition hunt as orders grow

ENGINEERING firm Amec said yesterday it was on track to meet 2013 guidance boosted by strong performances in the UK North Sea and the US Gulf of Mexico.

The group said its pipeline for acquisition “remains strong,” and reiterated that it would consider returning cash to shareholders this quarter if no acquisitions are made.

The company, which provides services and equipment for the oil and gas, mining, nuclear and renewable energy sectors, revised down its revenue target in August saying it expected 2013 revenue to be flat on last year due to weakness in its mining division, having earlier forecast low-to-mid single digit growth.

Amec did not give a forecast for revenue or profit, but analyst consensus estimates 2013 core profit of £344m with revenue of £4.1bn.

As of 31 October, its order book stood at £4bn, having won a five-year extension on its contract with the UK Nuclear Decommissioning Authority at Sellafield, plus a two-year contract with Isle of Wight Council to provide technical advice and consultancy on waste recycling.

“Amec has continued to perform in line with expectations, with strong performances in the UK North Sea and US renewable markets,” said chief executive Samir Brikho.

“Our record order book reinforces our confidence as we look forward to 2014.

Shares in the firm, which have risen 12 per cent so far this year, closed up 1.46 per cent in London yesterday, at 1,184p.