Energy services firm’s losses double

Takeover target Amec Foster Wheeler saw pre-tax losses double to more than half-a-billion pounds in 2016.

The energy services firm -– which is being bought over by Scottish oil and gas giant Wood Group – used its full-year results to warn of another year of decline ahead.

The company said weakness in the oil and gas markets in the Americas and the Asia, Middle East, Africa and Southern Europe regions was partially offset by growth in clean energy and environment and infrastructure.

The results show group pre-tax losses widened to £542 million in 2016, compared to a deficit of £235m a year earlier.

Revenues were roughly flat year-onyear at £5.4bn.“Given conditions in natural resources end markets, our 2016 trading performance was robust, as we benefited from the breadth of our business – especially the record performance from solar – cost-saving actions, and the fall in sterling in the second half of the year,” chief executive John Lewis said.

“We continue to expect another year of decline in oil and gas activity in 2017 and for solar activity to reduce significantly from the record levels seen in 2016.

“It is also expected that there will be a better performance from environment and infrastructure and a further significant contribution from standalone overhead cost savings.

“This year we will continue to leverage the outstanding technical expertise of our people to best serve our customers and deliver projects safely across all the markets in which we operate.

“This and the improvements we have made to the business will ensure we continue to make significant progress in 2017.”

Shares in Amec Foster Wheeler closed down marginally at 561p following yesterday’s session.

Amec Foster Wheeler technicians.