Reshaping for Growth
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_ AMEC plc 65 Carter Lane London EC4V 5HF United Kingdom Tel: +44 (0)20 7634 0000 Fax: +44 (0)20 7634 0001 www.amec.com AMEC plc annual report and accounts 2005 AMEC plc annual report and Contents accounts Financial highlights 1 Chairman’s statement 2 Reshaping for growth 4 A leader in project management Oil and Gas 6 2005 and services, we design, deliver Engineering and Technical Services 12 and support infrastructure – from local Project Solutions 18 Sustainability 24 technical services to international Our board of directors 28 landmark projects Chief executive’s review 30 Business and financial review 34 Report of the directors 56 Directors’ remuneration report 61 Across the world Consolidated income statement 67 Consolidated statement of recognised income Responsibly and expense 68 Consolidated balance sheet 69 For the long term Consolidated cash flow Reshaping statement 70 Notes to the consolidated accounts 71 for growth Company balance sheet 104 45,000 people Notes to the company balance sheet 105 700 locations Statement of directors’ responsibilities 112 Independent auditors’ report 40 countries to the members of AMEC plc 113 Principal group companies 114 Five year record 116 Shareholder information 117 Investor relations report 118 AMEC in 2005/6 119 _ AMEC plc 65 Carter Lane London EC4V 5HF United Kingdom Tel: +44 (0)20 7634 0000 Fax: +44 (0)20 7634 0001 www.amec.com AMEC plc annual report and accounts 2005 AMEC plc annual report and Contents accounts Financial highlights 1 Chairman’s statement 2 Reshaping for growth 4 A leader in project management Oil and Gas 6 2005 and services, we design, deliver Engineering and Technical Services 12 and support infrastructure – from local Project Solutions 18 Sustainability 24 technical services to international Our board of directors 28 landmark projects Chief executive’s review 30 Business and financial review 34 Report of the directors 56 Directors’ remuneration report 61 Across the world Consolidated income statement 67 Consolidated statement of recognised income Responsibly and expense 68 Consolidated balance sheet 69 For the long term Consolidated cash flow Reshaping statement 70 Notes to the consolidated accounts 71 for growth Company balance sheet 104 45,000 people Notes to the company balance sheet 105 700 locations Statement of directors’ responsibilities 112 Independent auditors’ report 40 countries to the members of AMEC plc 113 Principal group companies 114 Five year record 116 Shareholder information 117 Investor relations report 118 AMEC in 2005/6 119 _ AMEC at a glance About us Oil and Gas Engineering and Project Solutions AMEC is an international project With market leading expertise Technical Services We offer a package of services, management and engineering working on complex facilities from initial investment, to services company, employing and in challenging environments, Nuclear designing, delivering and 45,000 people in over 40 countries AMEC provides total life of AMEC is the UK’s largest private maintaining over the long term around the world. asset services to clients in the sector supplier of engineering hospitals, schools, rail, airports, international oil and gas industry, solutions and safety consultancy commercial and public buildings. We provide specialist total life Our markets services to the nuclear sector. We of asset services – designing, who are exploring for and The UK Government is a key and customers producing hydrocarbons. provide services throughout the life delivering and supporting our of nuclear assets, with our focus client – and we also work for clients’ capital assets. Following the proposed sale We offer consultancy and design being on design for new build, selected private sector clients of AMEC SPIE, our major home services, project management, operations support for existing with specialised requirements. Design markets will be in the UK and the commissioning and asset support assets and decommissioning Proposed sale We help develop the initial concept, Americas, though our international to onshore and offshore facilities and waste management. Equity Investments plan funding and add value from activities range from Alaska to and related infrastructure. AMEC has created a pipeline of AMEC SPIE the initial concepts through to Australia and from equatorial Africa We have long-term client of equity investment opportunities. On 24 November 2005, AMEC detailed designs. to the frozen Russian North East. Mining relationships in the UK and also We have equity participation in Our mining activities include provide services in the Americas, PPP and urban regeneration announced the proposed sale We work for a wide range of clients market leading oil sands South Africa, Eastern Europe and projects where multiple income of AMEC SPIE as part of a wide- Deliver across the public and private operations in Canada, together the former Soviet Union. streams are generated – from ranging strategic review. For selected clients in our chosen sectors, ranging from national with engineering and project investment, project management, The largest component of AMEC markets, we project manage, and local governments to blue management services for clients Power utilities and delivery and maintenance services SPIE is the Multitechnical Services construct and take care of chip companies in many parts producing minerals and metals. process industry – and we continue to build our business, which provides a broad commissioning according to their of the world. Here, our businesses provide requirements. We have long-term relationships position in the wind energy range of mechanical, electrical and engineering services from front- with many of our clients in the market, which offers significant communications services, ranging end design to maintenance Support natural resources sector, opportunities. from maintenance of street lighting support for clients across a broad We offer support services, from developing and supporting their for local authorities to design and spread of end market sectors specialist technical services such sources of supply around the world. delivery of fully automated vehicle as environmental consulting including power utilities, food assembly lines and advanced voice to long-term maintenance and Pipelines and beverage, pulp and paper, and data systems. Other elements and cement. to be sold are AMEC SPIE’s oil and operations support. And at the We are a leader in the international gas (excluding pipelines) and nuclear end of the asset’s life, we can pipeline industry, providing clients Environmental specialist services. It has a network help shut it down safely. with total life of asset services With a network of over 100 locations of 285 locations across France and and working in some of the most in North America and beyond, the also operates in other countries challenging environments in environmental business provides including the Netherlands, Morocco, the world, ranging from tropical a range of specialist services from Spain and Portugal. Also being rainforests to frozen tundra. environmental assessments, sold is the French railway business, materials testing and specialist together with 50 per cent of AMEC’s water services to geo-technical rail activities in the UK. Together, and clean-up services for public these businesses generated profits and private sector clients across before net financing costs of a wide range of our end markets. £49.7 million in 2005. _ AMEC at a glance About us Oil and Gas Engineering and Project Solutions AMEC is an international project With market leading expertise Technical Services We offer a package of services, management and engineering working on complex facilities from initial investment, to services company, employing and in challenging environments, Nuclear designing, delivering and 45,000 people in over 40 countries AMEC provides total life of AMEC is the UK’s largest private maintaining over the long term around the world. asset services to clients in the sector supplier of engineering hospitals, schools, rail, airports, international oil and gas industry, solutions and safety consultancy commercial and public buildings. We provide specialist total life Our markets services to the nuclear sector. We of asset services – designing, who are exploring for and The UK Government is a key and customers producing hydrocarbons. provide services throughout the life delivering and supporting our of nuclear assets, with our focus client – and we also work for clients’ capital assets. Following the proposed sale We offer consultancy and design being on design for new build, selected private sector clients of AMEC SPIE, our major home services, project management, operations support for existing with specialised requirements. Design markets will be in the UK and the commissioning and asset support assets and decommissioning Proposed sale We help develop the initial concept, Americas, though our international to onshore and offshore facilities and waste management. Equity Investments plan funding and add value from activities range from Alaska to and related infrastructure. AMEC has created a pipeline of AMEC SPIE the initial concepts through to Australia and from equatorial Africa We have long-term client of equity investment opportunities. On 24 November 2005, AMEC detailed designs. to the frozen Russian North East. Mining relationships in the UK and also We have equity participation in Our mining activities include provide services in the Americas, PPP and urban regeneration announced the proposed