WorleyParsons downgrades on weak Australian revenues
Mining services company WorleyParsons has downgraded profit expectations with a greater than expected decline in its Australian business.
WorleyParsons told the stock exchange today it had reconsidered guidance it gave at its recent annual general meeting after a delay in expected upturns in some business segments.
At the AGM it had reiterated guidance for an increase in its 2014 profit to $322 million.
“After considering our current trading results and having experienced a delay in upturn in our markets the company is issuing revised guidance.
“On current indications the company now expects to report underlying NPAT for FY2014 in the range of $260 million to $300 million with first half underlying NPAT in the range of $90 million to $110 million,” the company statement said.
You might like
WorleyParsons said the revised outlook reflected reduced professional services revenue compared to the prior year.
“This reduction is particularly evident in the company’s large Australian and Canadian businesses and to a lesser extent in Latin America and the Middle East,” it said.
“Outperformance in a number of other markets, in particular the United States, Southern Africa and Europe, will not be able to offset the decline experienced in the Australian and Canadian businesses as had previously been expected.
“The decline in the Australian business has been greater than expected, as hydrocarbons projects in Northern Australia move into the final construction and delivery phase and the Minerals & Metals business remains weak.”
Chief Executive Officer, Andrew Wood, said: “Notwithstanding the impacts weaker than expected market conditions are having on our performance, the cost reduction program we are implementing together with the momentum from recent contract awards should position us for medium term growth. The diversity of our business in terms of its geography, industry sector and service offering remains a fundamental strength.”
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
