LONDON (Alliance News) - Amec Foster Wheeler PLC Thursday slashed its dividend after turning to a substantial loss in 2015, and reiterated its dividend this year will fall even further as the downturn in the oil, gas and mining markets continues.
The FTSE 250-listed oil and gas services company reported a GBP235.0 million pretax loss in 2015, swinging from a GBP155.0 million profit despite revenue in the year rising 37% to GBP5.45 billion from only GBP3.99 billion last year, boosted by the merger between Amec and Foster Wheeler in late 2013.
On a pro-forma basis focused on continuing operations, revenue fell 7.0% from GBP5.80 billion in 2014. Cashflow from operations in 2015 rose 10% to GBP220.0 million from GBP200.0 million.
Amec Foster Wheeler said it will pay a total dividend of 29.0 pence for the full year, a steep drop from the 43.3 pence paid in 2014. Amec Foster also reiterated its statement last November, when it warned that dividends in 2016 will be approximately half that declared in 2014.
The company said its order book at the end of the year stood at GBP6.60 billion, higher than the GBP6.30 billion at the end of 2014.
"Our 2015 trading performance was in line with our November update. We expect the challenging market conditions to continue for the foreseeable future and our priorities remain the same," said Chief Financial Officer Ian McHoul.
"2016 is expected to be another year of challenging market conditions across upstream oil, gas and mining. However, our exposure to a number of end markets, including downstream oil and gas, renewables and government work means we expect to see only a slight fall in like-for-like revenue, and a reduction in trading margins significantly less than the decline in 2015," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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