Amec makes its power play

IRAQ reconstrcution contractor Amec is hedging its bets on the future of securing the next generation of electricity power stations back in the UK.

As a result of pulling back from the low-margin construction industry, Amec chief Sir Peter Mason today identified the design, build and operation of wind farms plus the potential to do the same for a new generation of nuclear power stations as key strategic fields.

Amec, yet to book income from Iraq contracts, reported first-half pre-tax profits up 5% at £37.5m.

Of Amec's £800bn infrastructure order book, £100m related to the Iraqi reconstruction contracts, and the group said it had made a 'cautious' estimate of expected income from Iraq this year.

'This contribution is expected to increase in 2005, as current assignments progress and further task orders are received, but it remains difficult to forecast with any accuracy the likely outturn in any given period,' it said.

Mason said: 'We are beginning to see improvements in North American markets. They're still mixed, but there are improvements. Generally, we think the prospects for 2005 are quite encouraging.'

Amec shares fell 4.8%, or 15 1/2p, to 304 1/2p in early trading.