Amec Foster Wheeler ‘in best possible shape’ ahead of sale

OIL services company Amec Foster Wheeler has returned to profit ahead of a £2.2bn takeover by Wood Group later this year.

Amec’s final results before the deal completes revealed better-than-expected earnings for the first half of the year due in large part to the turnaround plan put in place before Wood’s approach. The overhaul drove it from a pre-tax loss of £446m last year to a £77m profit for the first half of the year.

The group, which provides services to major oil and engineering companies, reported earnings before interest, tax, depreciation and amortisation of £162m, above analyst expectations of £156m. Net debt fell to £989m, from £1,084m at the end of last year. Jon Lewis, Amec’s chief executive, was tasked with rescuing the floundering company last summer, and said the first wave of benefits from the transformation programme were emerging. “I promised Wood Group’s chief executive, Robin Watson, that I would hand over the keys to a business which is in the best possible shape that it could be. And that’s what we’ve done,” he said.

Competition regulators are due to rule next week on whether Amec’s plan to sell its North Sea business will be enough to soothe concerns over the takeover. The shortlist of potential buyers is thought to include North American engineering services groups SNC Lavalin, Fluor, KBR and Jacobs.

Amec shares rose 5.3pc to 461.5p yesterday. Wood Group’s stock climbed 4.8pc to end at 633p.