http://www.wabusinessnews.com.au/en...-forecasts-increased-earnings-after-1H-profit
The share price has been going up over the past week!
Date---- SP__$ Volume
27-Feb-08 40.94 1,220,211
26-Feb-08 40.00 1,639,897
25-Feb-08 37.85 1,414,000
22-Feb-08 37.05 821,139
21-Feb-08 36.52 878,460
20-Feb-08 35.00 781,053
19-Feb-08 36.50 484,329
18-Feb-08 36.19 690,708
15-Feb-08 35.88 914,276
WorleyParsons forecasts increased earnings after 1H profit
27-February-08 by AAP
WorleyParsons, Australia's largest engineering company, has forecast higher earnings in the second half after posting a 61.6 per cent increase in half year profit.
Net profit for the six months to December 2007 was $152.7 million, up from $94.5 million in the previous corresponding period.
"Subject to conditions remaining favourable, we expect to achieve increased earnings in the second half of 2008," chief executive John Grill said in a statement today.
The company delivered a 76.7 per cent increase in earnings before interest and tax (EBIT) to $231.7 million, compared to $131.1 million in the six months to December 2006.
Revenue rose 55.7 per cent to $2.262 billion, up from $1.453 billion in the previous corresponding half.
"It is pleasing to deliver yet another strong result reflecting the continued positive trading conditions the group has enjoyed over the last few years," Mr Grill said.
"Our key markets and sectors continue to experience positive conditions and we are well positioned to respond to these opportunities."
ABN AMRO Morgans private client adviser Craig Walker said the result was in line with "pretty lofty" expectations.
"But they managed to meet it, which is good to see," Mr Walker said.
WorleyParsons said the outlook for its hydrocarbon division, which has contracts with oil giants Woodside Petroleum Ltd, Chevron and ExxonMobil, remained positive for 2008.
"Our global hydrocarbons business is now a highly credible, world-class business and we continue to see positive conditions remaining in this sector," Mr Grill said.
"However, we remain cognisant of the significant pressures participants in the industry continue to experience due to resource and capacity constraints."
"We are delighted from the strong contribution from our Canadian operations, which has exceeded our expectations during the period."
WorleyParsons acquired Canadian design and project services business Colt Companies, which has significant upstream and downstream hydrocarbons capabilities, for $1.13 billion 12 months ago.
The Perth-headquartered engineering company forecast a positive outlook for its minerals and metals division thanks to strong demand for these commodities, driven by the industrialisation of China and India.
The company noted that a strong pipeline of future mining projects could be affected by financing constraints and access to capital amid global market turmoil.
WorleyParsons forecast strong demand on its power and infrastructure divisions, with significant growth opportunities for infrastructure services in the Middle East, Africa, and some parts of Asia and eastern Europe.
It said the performance of this division exceeded expectations, reflecting continued organic growth including solid performance on two world scale resource projects including Fortescue Metals Group Ltd's $3.7 billion Pilbara iron ore project, which is scheduled to start exporting iron ore by mid-May.
The engineering firm spent $72.7 million on acquisitions during the half, including Sydney-based consulting engineers and scientists Patterson Britton and Partners Pty Ltd, and US power group Polestar Applied Technology Inc.
Mr Grill said the company continued its strategy of extending its capability and geographic coverage with acquisitions, and was evaluating opportunities.
WorleyParsons declared an interim dividend of 38 cents, up from 28 cents for the previous corresponding period.
Its shares were 72 cents, or 1.8 per cent, higher at $40.72 at 1310 AEDT.