Amec Share Discussion Threads

[philanderer] 03/7/2012 23:36

LONDON (SHARECAST) - The oil equipment, services and distribution sector was one of the best performing categories on Tuesday afternoon with Petrofac and AMEC among the stocks providing a lift.

Petrofac, which specialises in the design of hydrocarbon processing plants, was up over 1% after Liberum Capital upgraded its rating on the stock to 'buy'. AMEC, the engineering consultancy and project management group, was also on the up after Nomura named it as its top pick in the European oilfield services (OFS) sector.

[luderitz] 17/5/2012 14:30

Seems to be going down with the rest of the market, a bit surprised myself, any holders out there fancy a sensible comment?

[northernlass] 06/5/2012 03:46

BP's Mad Dog Contract

AMEC Wins Contract For BP's Mad Dog Project

LONDON (SHARECAST) - Engineering and project management company AMEC has been awarded a topsides design contract by BP for the Mad Dog Phase Two deepwater project in the Gulf of Mexico."Deepwater projects are increasingly important in helping to meet rising demand for oil and gas around the world," AMEC said in a statement on Tuesday morning.

The company will provide Front End Engineering Design (FEED) services for the topsides facilities for BP Exploration & Production - the new facility will be of one of the largest floating production systems to be installed in the Gulf of Mexico.

"This award is the latest in our on-going global engineering and project management services agreement with BP and continues our long-term collaboration with the largest oil producer in the Gulf of Mexico," said Simon Naylor, President of AMEC's Natural Resources Americas business.

"The contract further strengthens AMEC's track record in the development of global deepwater facilities, building on current offshore projects in Brazil and Angola."

No contract value has been disclosed.



P.S.
Here's some links about SCLP, one of the hottest stocks at the moment:

[gateside] 03/5/2012 21:00

LONDON (SHARECAST) - Nomura has reiterated its buy recommendation and 1,240p target price for engineering and project management services outfit AMEC, hailing the firm's solid first quarter and strong outlook for future acquisitions.

AMEC's year-to-date performance has been in line with expectations, according to Nomura. The broker highlights the unchanged backlog (from December 2011) at £3.7bn "underpinned by strong activity across all segments with a focus on increased market share in the Middle East, accelerated activity in nuclear asset support and harvesting of strategic relationships with key IOCs including BP, Exxon and Shell."

Meanwhile, the broker brings attention to the Chief Executive's comments that the 2011 acquisitions are integrating well and says that similar comments were made following the MACTEC purchase in May.

"We believe that the company will consider bolt-on acquisitions as well as transformational opportunities and expect something to materialise over the coming three to six months," the broker said.

Furthermore, the valuation is "compelling" with the stock trading at 11.5 times 2013 earnings, well below the historical average of a 18.5 multiple (2005-2011). The sector is currently trading at 12.5 times 2013 earnings on average; AMEC is trading below this despite a sector-leading earnings per share (EPS) outlook.

[volsung] 03/5/2012 11:12

I agree it was a good day for an update that 16th April one

[volsung] 02/5/2012 16:27

16th April was a good day for the update methinks

[volsung] 30/4/2012 16:43

Solid morning update on the 16th April

[gateside] 16/4/2012 09:33

Solid update this morning.

[john of groats] 10/3/2012 16:26

Euro Crisis Road Map

We are certainly not out of the woods yet. Judging by this list of key milestones, we will certainly experience market volatility for at least the next two months:



It is probably worth consulting this regularly to see how the share price may be affected by news, particularly of the raft of bond auctions.

John

[apad] 02/3/2012 09:23

113 jobs on offer in nuclear alone!
apad

[stephanie_m] 26/2/2012 10:02

Tipped by Daily Mail (Midas)

s

[apad] 22/2/2012 08:03

Any views:
As posted on KENZ board:
FT on AMEC:
Samir Brikho has switched on the fog lights. On Tuesday, the chief executive of Amec, the UK oil services group, not only reported a 13 per cent jump in annual earnings per share; he also peered into the gloom to forecast that it would hit 100p by 2015, two-fifths higher than 2011's level. In addition, he announced a £400m share buy-back and a 15 per cent dividend increase – sharing the spoils of Amec's growing order book and a backlog of £3.7bn. That is rare optimism and Mr Brikho probably expected investors to be impressed. Instead, Amec's share price over the day barely moved. But that was not too surprising. Amec's shares already trade at about 14 times 2012 earnings, close to the FTSE 350 oil equipment services index's multiple. Although the company boosted EPS 13 per cent last year, it will need to maintain this clip to hit its 2015 target. The company believes it can do this organically. But it has also flagged that acquisitions are on the horizon. Debt-free Amec certainly has the capacity to buy some rivals. The £400m buy-back will soak up four-fifths of its current cash balance. But it is a strong cash generator. Assuming that it keeps its net debt below twice its earnings before interest, tax, and amortisation (£300m last year), and any purchase yields ebita of 23 per cent of its equity value – in line with Amec's – a £900m-odd acquisition is possible.

So rumours it may try to buy UK rival Petrofac are likely to be false. Petrofac's market capitalisation is £5.3bn. That means any attempt would require a chunky equity call from Amec's shareholders – something Tuesday's share buy-back appears to negate. Smaller rivals Hunting or Cape are possible targets, but could be more asset heavy than Amec would like. But with its shares trading at fair value, further upside looks dependent upon acquisitions.

apad reply:
If you want to go hunting for AMEC takeover targets, go looking amongst the specialist engineers that bring a significant technical advantage to AMEC, rather than its general competitors. AMEC has significant technical expertise in nuclear technology (e.g. safety codes) - it will be looking for adding technical value in preparation for the start of the Nuclear New Build program. The Hunting speculation in the FT article was spot on, in terms of technical fit, if it is for sale.
The interesting question is: "what's the short list?".
apad

[john of groats] 08/2/2012 20:36

Today's RNS:

"Following this change, AMEC plc's registered capital now consists of 337,965,871 ordinary shares, of which 4,748,117 are registered as Treasury Shares, leaving a balance of 332,217,754 shares with voting rights."

Simple arithmetic lesson:

337,965,871 - 4,748,117 = 333,217,754.

What happened to the missing 1,000,000 shares? ;-)

John

[maurillac] 08/2/2012 14:23

been watching these awhile apad .. reckon i missed the boat. should have got in at c 920. great chart that
m

[apad] 07/2/2012 16:46

Bit early - just discovered it was an IC tip!
apad

[apad] 07/2/2012 09:20

Nice 'n quiet here.
Increased my holding this morning in the run up to the results. Not my usual practice but AMEC look "value" compared with its peer group so decided to risk it.
EPS forecast of 69p would reduce the PER to 15 and a yield of about 3%.
However, 900 is a much safer buying price.
apad

[wiisdomseeker] 11/1/2012 08:15

AMEC (LON:AMEC)
Wednesday, Jan 11 2012
by Fox Davies Capital

[apad] 31/8/2011 09:18

Broker downgrades following results. Better short term buying opportunities. My average buying price is 931. I'm expecting relative weakness.
apad

[apad] 31/8/2011 07:55

Much better timing than my 25th Aug purchase Philo.
I favour AMEC (over PFC) because of its nuclear capability but orders must be a few years down the line.
apad

[philo124] 30/8/2011 17:55

Bought today.

[nellie1973] 18/3/2011 18:39

Another with a target price of 1323p

[nellie1973] 04/3/2011 13:53

Yet another broker upgrade for this fine firm.

[cambium] 03/3/2011 12:07

This is an awesome share, my longest holding, my annual dividend is now larger than my existing purchase cost. buffet eat your heart out

[nellie1973] 24/1/2011 13:21

Another upgrade today