Contact
photo:Rupert Green
Rupert Green
Chief Corporate Development Officer
UK: +44 207 429 7500
photo:Achilleas Georgiou
Achilleas Georgiou
Media Relations Manager
+44 207 429 7511
Brunswick Group LLP Mike Harrison/Stuart Donnelly
+ 44 (0)20 7404 5959
Share this release
Share on: Twitter
Share on: Facebook
Share on: LinkedIn
Latest news
London, UK,
09
August
2016

Half-year results 2016

Summary:

  • Mixed H1 trading results
    • Record solar and UK North Sea revenue, offset by weak performance from Americas O&G
    • Non-cash impairment charge and asset write-offs of £440m (including Americas O&G and GPG)
    • Interim dividend of 7.4p
  • Reiterate key guidance
    • Expectations for FY2016 trading result unchanged
    • Target £500m of proceeds from disposals by June 2017
  • Strategy, organisation and cost review initiated; to be completed in autumn

H1 2016: Key performance measures1

£m unless stated, for 6 months ended 30 June 2016 2015 Change
Continuing operations      
Revenue 2,842 2,664 +4%2
Trading profit3 177 188 -9%
Trading margin 6.2% 7.1% -90bps
Trading cash flow 125 84  
Cash conversion 71% 45%  
Adjusted diluted earnings per share 28.2p 34.0p -17%
Order book 6.2bn 6.6bn -9%

 

H1 2016: Reported under IFRS

£m unless stated, for 6 months ended 30 June 2016 2015 Change
Continuing operations      
Revenue 2,842 2,664 +7%
(Loss)/profit before net financing expenses (414) 83  
(Loss)/profit before tax (446) 73  
Cash flow from operations 21 (9)  
Diluted earnings per share (115.8)p 14.5p  
Interim dividens per share 7.4p 14.8p -50%
Net debt 1,084 957 +13%

 

Notes:

  1. Adjusted performance measures used by the group are reconciled to the equivalent IFRS measures in ‘Performance measures’
  2. Excluding the impacts of currency movements
  3. Trading profit represents profit before net financing expense excluding exceptional items, the amortisation and impairment of intangible assets (including the impairment charges at GPG and Americas) and asbestos-related costs (net of insurance recoveries). Trading profit includes the group’s share of the trading profit of joint ventures 
Jonathan Lewis, Chief Executive Officer, Amec Foster Wheeler plc
Our industry continues to face very challenging conditions, with capital projects across natural resources markets being delayed and cancelled in many parts of the world. 

Despite this, we continue to benefit from the diversity of our platform and we remain on track to deliver the operational guidance we gave at the beginning of the year.

I have initiated a wide-ranging review of the strategy, our organisation structure and cost base – which we are now part-way through. I expect to update investors on these issues in the autumn.
Jonathan Lewis, Chief Executive Officer, Amec Foster Wheeler plc

Results presentation:

We will host a webcast for analysts and investors at 8.30am (UK time) today. The webcast can be accessed via: amecfw.com/investors/results-centre/half-year-results-2016

A recording will be available shortly after the event has finished.

Analyst consensus estimates:

Regularly updated on our website at amecfw.com/investors/consensus-estimates.htm

Notes to editors

Amec Foster Wheeler (www.amecfw.com) designs, delivers and maintains strategic and complex assets for its customers across the global energy and related sectors.

 

Employing around 36,000 people in more than 55 countries and with 2015 revenues of £5.5 billion, the company operates across the oil and gas industry – from production through to refining, processing and distribution of derivative products – and in the mining, clean energy, power generation, pharma, environment and infrastructure markets.

 

Amec Foster Wheeler offers full life-cycle services to offshore and onshore oil and gas projects (conventional and unconventional, upstream, midstream and downstream) for greenfield, brownfield and asset support projects, plus leading refining technology.

 

Amec Foster Wheeler shares are publicly traded on the London Stock Exchange and its American Depositary Shares are traded on the New York Stock Exchange. Both trade under the ticker AMFW.