ENGINEERING project-management group AMEC said yesterday its oil and gas business had made a major contribution to record financial results for 2008.
AMEC, whose Aberdeen-based natural resources arm provides engineering services for the oil, gas and mining industries, more than doubled its annual profits to £306.6million.
The pre-tax surplus for 2008, which compares with £151.6million a year earlier, was helped by 35% growth in earnings before interest, tax and amortisation – to £129.3million – in the natural resources operations.
Revenue for natural resources was up by 19% at £1.2billion, without adjustments for currency movements and the impact of acquisitions, which helped overall group revenue soar 11% to £2.6billion.
AMEC now boasts a £3billion order book after landing a deal from BP for work on the oil major’s offshore schemes around the world, and is part of a team chosen to run the Sellafield nuclear site in Cumbria.
The firm said the outlook was less certain but viewed this year’s prospects with measured confidence.
It has been transformed in recent years under chief executive Samir Brikho, who sold off the company’s underperforming construction businesses in 2007 to focus on oil, gas and power markets.
Seymour Pierce analyst Kevin Lapwood said: “Despite fears over the potential impact of falling oil and commodity prices, AMEC has seen only minor delays and cancellations of prospective projects which were insignificant in the context of the total order book.”