Shareholders in Amec Foster Wheeler (AMFW) have been put through the wringer of late. Earlier this month, the energy-focused engineering group announced that it was cutting its dividend payouts by half, starting with the final dividend for 2015. Management also warned that profit margins were under increased pressure as customers trawl around for industry savings. Amec's current programme of works is skewed towards less-profitable business, so management is targeting another $55m in cost admin cost savings in a bid to shore up earnings.
Four days after Amec dropped its bombshell, group chairman John Connolly nearly doubled his stake, forking out more than a £250,000 in the process. An act of faith that was subsequently rewarded by a 16 per cent fall in the share price. Mr Connolly is obviously in for the long-haul, which is just as well given that oil and gas capital budgets will remain strained through 2016.