Amec Foster Wheeler reported pretax losses for 2016 of £542M, an increase on £235M reported in the previous year, due to weakness in the global oil and gas market.
Revenue for the company’s oil, gas and chemicals sector was down by around 25% on the previous year at £2.26bn. However the environment and infrastructure segment performed well with revenue at £9.54bn, up from £8.39bn in 2015.
The firm said it expects another decline in oil and gas activity in 2017, along with a significant reduction in solar. Last month the firm announced a £2.2bn merger with its rival Wood Group.
“Given conditions in natural resources end markets, our 2016 trading performance was robust, as we benefited from the breadth of our business – especially the record performance from solar – cost saving actions and the fall in sterling in the second half of the year,” said Amec Foster Wheeler chief executive Jonathan Lewis.
“It is also expected that there will be a better performance from environment and infrastructure and a further significant contribution from standalone overhead cost savings.”
Lewis added that better progress is expected in 2017.