Alongside its Q1 trading update the company has announced the appointment of a new CEO this morning. Dr Jonathan Lewis joins the company from Halliburton where he has led the Oil & Gas specialist's Completion & Production division since 2014. Lewis is due to join the company in July at which time Ian McHoul will step down as acting CEO, remaining CFO.
Revenues for the first quarter are down 1.5% on last year's results, at £1,300m, 3.1% lower on a like-for-like basis. The order book has declined from £6.6bn at the end of December to £6.4bn at the end of March.
Net Debt at the end of the quarter was £1.16bn, including the £49m payment to settle the Longview arbitration and £57m interim dividend.
AMEC shares opened fractionally up.
Financial guidance for the full year remains unchanged, with a slight like-for-like revenue decline expected and a significantly smaller decline in trading margins than that experienced in 2015.
Working capital outflows in the first half are expected to reverse in the second half, in line with previous years. Net debt is anticipated to be c. £1bn before disposals.
Disposals are expected to make a major contribution to halving net debt before June 2017 - this includes the disposal GPG, where there are reported to be a number of interested buyers with the disposal expected to complete in the second half.
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