FEARS continue to surround engineering jobs after a firm targeted in a takeover racked up higher losses.

Amec Foster Wheeler’s annual pre-tax deficit has ballooned to £542m, with the prolonged oil and gas sector downturn negating gains in power and environmental work.

The business is already at the centre of job concerns following a £2.2bn takeover bid from Wood Group and bosses last night failed to respond to fresh questions from The Northern Echo over whether the latest losses will affect its workforce.

The firm is one of Darlington’s largest employers and provides livelihoods for hundreds of people through support processes, such as payroll work, from its Lingfield Point base, though the Echo is aware of claims that some staff have already been released.

Wood Group, which has admitted it will make operational and administrative changes in any takeover, believes its plan will save at least £150m annually by the end of the third year following completion.

A third of the changes are expected to come from office closures and cuts to duplicate IT systems and support services.

Bosses say their figures take into account Amec’s finance and HR services shifting to Wood Group, which already manages operations at the Central Area Transmission System gas terminal, in Seal Sands, near Billingham.

However, Jon Lewis, chief executive, said Amec, which has taken the decision to suspend all dividend payments until “sustainable free cash flow” generation, said the business was primed to make “significant progress” in 2017.

Mr Lewis said the firm’s wide range of interests, which also include mining and solar work, provide scope to operate successfully amid continuing oil and gas sector worries.

He added: “Given conditions in natural resources end markets, our 2016 trading performance was robust.

“We benefited from the breadth of our business – especially a record performance from solar – cost saving and the fall in sterling.

“We continue to expect another year of decline in oil and gas and for solar to reduce significantly.

“However, we will continue to leverage the outstanding expertise of our people to best serve customers and deliver projects.

“This, and the improvements we have made to the business, will ensure we continue to make significant progress.”

Wood Group’s plans, which shareholders will vote on later this year, come after the Echo revealed up to 45 Amec posts were at risk of being moved from Darlington to India in a restructure aimed at reducing the business’ £1bn debt pile.