ENGINEERING giant Amec has posted a rise in revenues and earnings following a string of major contract wins.
The company, which employs more than 500 staff at its Darlington and Wynyard sites, saw revenues rise 4% to £1.5bn in the half year to June 30, while earnings before interest, tax and amortisation was up 9% to £122m.
Although pre-tax profits slumped 11% to £101m, the underlying picture improved due to solid performances from the firm’s mining and North Sea oil operations.
The order book was swelled to £3.4bn from £3.1bn in December, with Amec clinching two massive contracts in the space of a month.
It won a £32m order for the modification and extension of the Teesside Gas Processing Plant (TGPP) at Seal Sands before sealing a multi-million pound order from international oil heavyweight BP.
Chief executive Samir Brikho said: “Amec made good progress in the first half of 2011.
“A strong performance in mining and power and process and increased activity in the UK North Sea more than offset the anticipated reduction in activity levels within our oil sands and federal businesses.
“Demand for our services and investment in our end markets remain strong, and we expect new contract awards to support future growth despite increased economic uncertainty.
“We completed four acquisitions in the first half and integration is progressing well. Our balance sheet is strong and we continue to target further acquisitions.”
However, Amec warned that tight credit conditions and uncertainty surrounding the economy were barriers to growth in the second half of the year.
Employing 27,000 people in around 40 countries, the firm operates mainly in the oil and gas, minerals and metals, clean energy, environment and infrastructure markets.
Last year it was awarded a £60m order by EDF Energy to extend a gas storage facility in Cheshire.
Amec also carried out design work on the £600m Gateway Underground Gas Storage Project in the Irish Sea off Barrow-in-Furness.