About 56% of revenue will be in oil and gas, with nearly 20% in clean-energy work, says Simon Naylor, group president for the Americas. The Houston-based group will account for 42% of corporate employees and 47% of overall revenue. Naylor was in the same role for Amec since 2012; Amec CEO Samir Brikho assumes that role for the larger corporation. Foster Wheeler CEO Kent Masters leaves the firm but stays a non-executive director.
Naylor says the firm now has engineering and construction capability in upstream, midstream and downstream O&G markets. "We're looking at one plus one equaling at least five," he says. "Our risk appetites are similar. We do lump-sum work and will continue to."
In a filing earlier this month, Amec said "limited international opportunities" cut revenue last year and that "volume reduction" in some U.K. sectors impacted margins. Foster Wheeler said third-quarter results in power were off "due to timing of new orders, mix of work executed and reduced margins." Naylor is not concerned about the impact of falling oil prices, with clients taking "the long-term view." He says Foster Wheeler is strong in Asia petrochemical work and sees opportunity in Mexico, where "there is an amazing amount of unconventional gas."
AMEC is the fifth-largest company on ENR's list of the Top 150 Global Design Firms. Foster Wheeler ranks at No. 17 on the Top 400 Contractors list and at No. 83 on the Top 250 Global Contractors list.