AMEC core earnings jump 25 pct on natural resources business

Thu Aug 9, 2012 2:37am EDT

Aug 9 (Reuters) - British engineering company AMEC Plc said first-half core earnings rose 25 percent, boosted by strong revenue in its natural resources business, and raised its interim dividend.

AMEC, which designs and builds infrastructure for the oil and gas, mining, nuclear and renewable energy sectors, said though it expects underlying revenue growth in the second half to be significantly lower than the first half, it was on track to meet double-digit underlying revenue growth in 2012.

AMEC posted earnings before interest, tax and amortisation (EBITA) of 152 million pounds ($238.03 million) for the first half as against 122 million pounds a year earlier.

Revenue was up 37 percent at 2.13 billion pounds, helped by a 52 percent growth in the natural resources business that contributes about half of its overall revenue.

AMEC, which serves customers such as BP Plc, ArcelorMittal and GDF Suez, said its order book stood at 3.7 billion pounds, marginally ahead of 3.4 billion pounds last year.

The company raised its interim dividend to 11.7 pence per share from 10.2 pence.

AMEC shares, which have risen 17 percent since the beginning of the year, closed at 1159 pence on Wednesday on the London Stock Exchange.

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