WorleyParsons profit down 30%, beats expectations
February 18, 2010
WorleyParson Limited’s (WOR) profit fell by nearly a third to $138 million in the six months to 31 December 2009. The company, however, maintained its guidance saying it was expecting a stronger second half to the year.
CEO John Grill said the oilfield engineering firm was confident its medium-term and long-term prospects were positive, based on its competitive position and capacity.
“While WorleyParsons confirms that our current expectations of net profit after tax for the 2010 financial year remains in the range of $280 million to $320 million,” Mr Grill said, “we are encouraged by increasing activity in a number of regions and customer sector groups supporting our view of a more significant weighting of earnings in the second half of the financial year.
The company said that despite relatively strong demand out of the Middle East, declining work in the oil sands of Canada and a stronger Australian dollar had hurt the company.
The company also saw reduced demand in its Power business, especially in the US, while US hydrocarbons was down $39 million in revenue from the previous corresponding period.
Overall the hydrocarbons business reported aggregated revenue of $1.869 billion.
”We were successful in renewing all major long term contracts which expired during the period including 5 year contract extensions for Syncrude and Imperial Oil in Canada and the Tennessee Valley Authority in the US,” Mr Grill said.
“In the Minerals & Metals market, we are seeing some encouraging signs that will provide support for stronger performance in the second half of this year and into the next financial year.
The company, across the whole group, reported revenue of nearly $2.5 billion, down 20% from the previous year.
The board of directors declared an interim dividend of 35.5c per share, down from 38c per share last year.
At 1044 AEDT, WorleyParsons shares were up 26c, or 1.1% to $24.26.
CEO John Grill said the oilfield engineering firm was confident its medium-term and long-term prospects were positive, based on its competitive position and capacity.
“While WorleyParsons confirms that our current expectations of net profit after tax for the 2010 financial year remains in the range of $280 million to $320 million,” Mr Grill said, “we are encouraged by increasing activity in a number of regions and customer sector groups supporting our view of a more significant weighting of earnings in the second half of the financial year.
The company said that despite relatively strong demand out of the Middle East, declining work in the oil sands of Canada and a stronger Australian dollar had hurt the company.
The company also saw reduced demand in its Power business, especially in the US, while US hydrocarbons was down $39 million in revenue from the previous corresponding period.
Overall the hydrocarbons business reported aggregated revenue of $1.869 billion.
”We were successful in renewing all major long term contracts which expired during the period including 5 year contract extensions for Syncrude and Imperial Oil in Canada and the Tennessee Valley Authority in the US,” Mr Grill said.
“In the Minerals & Metals market, we are seeing some encouraging signs that will provide support for stronger performance in the second half of this year and into the next financial year.
The company, across the whole group, reported revenue of nearly $2.5 billion, down 20% from the previous year.
The board of directors declared an interim dividend of 35.5c per share, down from 38c per share last year.
At 1044 AEDT, WorleyParsons shares were up 26c, or 1.1% to $24.26.
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