THE INVESTMENT COLUMN: Hope of Nuclear Power Contracts Makes Amec Worth Holding on To
While the public debate on the future of nuclear power in the UK continues, companies such as Amec are waiting on the sidelines ready to pick up billion-pound contracts to restore Britain's nuclear generators if they get the green light from the Government.
The company, an engineering, construction and project management business, is already hoping to win lucrative contracts to clear up existing nuclear waste. These could be worth as much as pounds 20bn and will go out to tender next year.
But aside from the nuclear issue in the UK, a trading statement from Amec at its annual meeting yesterday revealed the company is on track for a good year.
Amec has moved from straightforward construction projects to large and complex developments, which can involve project management, design, construction, engineering and maintenance. Its three divisions are engineering and technical services (E&TS), the oil and gas sector, and project solutions, which includes public sector developments. These are all high-margin activities, bringing in a number of income streams.
Since the year-end Amec said it had won three major projects in the oil and gas sector, worth more than pounds 100m. …