AMEC says 2008 margin to be in excess of 6.5 percent

Source: Reuters

Date :12/11/2008 09:39:17

Oil, gas and mining engineer AMEC said on Wednesday it is confident of delivering a margin in excess of 6.5 percent this year as it saw a continued strength in demand for its services.

The group said it expects to deliver improvements in EBITA margin over the next two years, driven by "internal initiatives." It has targeted achieving an EBITA margin of 8.5 percent in 2010.

AMEC said its natural resources order book was up 12 percent this year. It said demand for its services in the energy, power, and power industry sectors had remained strong.

"Despite extreme volatility in financial, raw materials and currency markets, the aggregate order book impact of contract deferral or cancellation across the group during the year to date has been insignificant," the group said in a statement.

AMEC said it had benefited because its clients, which include international and state owned natural resources companies, power generators, and utilities, are well financed and their spending plans reflect the continued need to invest in new sources of supply, as well as maintaining existing assets.

AMEC said that, since July 1, it had been awarded contracts with an aggregate value in excess of 700 million pounds for delivery over the next five years.

The group said it is in an "exceptionally strong financial position" with net cash of 600 million pounds and is monitoring opportunities for growth through acquisitions.

(Reporting by Matt Scuffham)

LONDON (Reuters)