Amec Foster Wheeler's got the power -- gas, oil, nuclear, and renewable. The engineering giant provides design, consulting, and project management services for the natural resources (oil sands, oil and gas, and mining), nuclear, clean energy, water, and environmental sectors. The company is active in the UK and the Americas, as well as Australia and the Middle East. Amec Foster Wheeler is responsible for maintaining large, complex facilities such as nuclear power stations and oil and gas production facilities. It also offers environmental consulting. Top clients include BP, Shell, EDF, and the US Navy. Amec Foster Wheeler traces its history back more than 160 years to a UK-based construction company.
The UK-based firm has operations in 40 countries worldwide. On a regional basis, The Americas is Amec Foster Wheeler's largest market, contributing 60% of sales. Europe represents more than 25%. The firm has major offices in Australia, Azerbaijan, Canada, Chile, China, Kuwait, Malaysia, Singapore, South Africa, and the United Arab Emirates.
Natural Resources is the firm's largest division, accounting for nearly 60% of its revenue in 2012. The division serves oil and gas, mining, and clean energy customers. Amec Foster Wheeler's Power & Process and Environment & Infrastructure divisions each contribute about 20% of sales. Clients include public utilities and privately owned power generators, and gas and electricity transmission and distribution facilities. The firm is also active in environmental and engineering consulting.
Amec Foster Wheeler's revenue increased 28% in 2012 versus 2011, to £4.2 billion ($6.7 billion). The double-digit gain was driven by the strong performance of conventional oil and gas in the North Sea and the Gulf of Mexico and in mining throughout the Americas, as well as recent acquisitions. All of the company's divisions grew revenue. On a regional basis, 63% of its growth in 2012 versus 2011 was generated in the Americas, followed by 25% in Europe, and 12% from growth regions in Asia, the Middle East, and Africa.
Demand for Amec Foster Wheeler's services remained strong throughout the global financial crisis and has accelerated as the world's economies recover. Indeed, 2012 was the firm's fourth consecutive year of revenue growth, although profit growth has been harder to come by. Net income decreased 7% in 2012 versus 2011 due to increasing costs and administrative expenses, as well as acquisitions.
In 2013 and beyond Amec Foster Wheeler expects growth to continue -- especially in its conventional oil and gas business, where growth is expected to remain strong -- despite ongoing economic uncertainty and challenging conditions in certain areas.
To keep pace with increasing demand for its services, Amec Foster Wheeler has been busy expanding its service capabilities and geographic reach through an active acquisition schedule. The firm has seen its business in Canada grow tremendously. (Canada now accounts for more than 35% of revenues.) Most of the company's growth in Canada has been boosted by acquisitions there. In recent years, It has bought Canadian firms involved in oil sands engineering and infrastructure engineering.
And in late 2014, to expand its geographic reach and service capabilities, Amec Foster Wheeler acquired Scopus, a market-leading laser-scanning, dimensional control, and lean engineering company based in Aberdeen, Scotland. Management believes that Scopus, whose precise survey data is used in the oil and gas industry to engineer piping and structural solutions, will help AMEC strengthen its project delivery capabilities in the upstream, midstream, and downstream oil and gas sectors.
Future areas of focus for Amec Foster Wheeler include deepwater projects, subsea and pipeline engineering, and underground mining. Other growing sectors for the firm include nuclear energy and the transmission and distribution of renewable energy, areas that have garnered attention as oil prices climb. Geographic areas targeted for growth include Australasia, Latin America, and the Middle East.
In 2013 the firm changed how it reports its financial results from a divisional basis to a geographic one. The change was made to support growth.
Mergers and Acquisitions
In 2011 the firm purchased BCI Engineers and Scientists, a Florida-based consulting firm that specializes in water and mining; Zektingroup, an Australian oil and gas engineering consultancy; Qedi, a Scotland-based project delivery company that serves the oil and gas industry; and MACTEC, a provider of engineering and environment services, mainly in the eastern US.
In 2012 the company acquired Serco's 600-person nuclear ESRC business in the UK; Unidel, a 260-person energy, resources, and infrastructure engineering and consulting business based in Brisbane, Australia; and a 50% stake in Kromav Engenharia, a privately owned Brazilian oil and gas and marine engineering company.
AMEC acquired Swiss engineering and construction contractor Foster Wheeler in 2014 for nearly £2 billion and changed its own name to Amec Foster Wheeler. The new rendition is expected to have revenues of some £5.5 billion.