WOR - Worley Limited

still on the way down? bottomed under $13 - ouchie mama.

any theories on the SP crash in the face of positive news??

all$andnocents said:

still on the way down? bottomed under $13 - ouchie mama.

any theories on the SP crash in the face of positive news??

Click to expand...

My guess is that WOR survives on low margin high volume labour supply (High quality of course as they supply engineers, managers. designers etc). They supply those personnel always on client premises which means no overhead on WOR and just cash profit on operation.

Now their lose of manpower from MOL, FMG and few others mean those cash cows stopped giving milk

WIth low margin unless the volume remains significant profit aspect is low

So obvious victim is share price

Disclosure : Do not hold WOR

Miner said:

My guess is that WOR survives on low margin high volume labour supply (High quality of course as they supply engineers, managers. designers etc). They supply those personnel always on client premises which means no overhead on WOR and just cash profit on operation.

Now their lose of manpower from MOL, FMG and few others mean those cash cows stopped giving milk

WIth low margin unless the volume remains significant profit aspect is low

So obvious victim is share price

Disclosure : Do not hold WOR

Click to expand...

almost :topic but I think I might get away with it.
BHill is home base for a drilling Co called "silver city drillers" - a private co as far as I know and yesterday proprietor was on local ABC talking about the downturn,
last year they had 18 drill rigs flat out and bought a couple of 6 seaters to fly personnel in/out spending $10m on new gear.
currently half their rigs are 'parked up' in the local yard and not one of the working rigs is working in NSW or SA
they have decided to turn their focus to specialist drilling where they believe the work will come from for some time.
He does not believe other (routine) work will pick up for at least 18 months.
They already have one or two CSM rigs in the field and they have manager in US buying a hot rock specialty rig (down to 6000m) - best of their others are down to 2000m only
so that is where they believe the work will be csm and hot rock
and that may give some indication of the downturn as it affects mining support co's

Was that a bottom down there?

Pretty good base. Making higher highs and lows. Broken some strong resistance.....

DOW is a little similar, but not broken horizontal resistance yet.
LEI may be bottoming, for now.

Encouraging news: "it has also been actively recruiting for other areas of the business."

Currently today $18.07 up 27 cents @ 10:36 AM
The SP has been very good during the past month up $4.49 since Feb 19

Date....... Close Volume
19-Mar-09 17.80 2,381,992
13-Mar-09 17.40 1,737,051
12-Mar-09 15.85 615,680
11-Mar-09 16.59 1,027,083
10-Mar-09 15.70 1,209,614
26-Feb-09 15.09 1,978,646
25-Feb-09 14.68 1,835,982
19-Feb-09 13.58 1,879,175

52-wk High 42.4800
52-wk Low 10.6200

http://www.constructionindustrynews.net/storyview.asp?storyid=1024975&sectionsource=s0

Worley cuts Australian staff, but payroll increases overall
Alex Forrest
Wednesday, 18 March 2009

RESOURCES-focused engineering services major WorleyParsons has cut some 30 staff from its Australian operations, CIN understands.

A source close to the company said the lay-offs occurred on Monday this week, and follows previous staff reductions prior to Christmas.

However, a spokesman for the company’s Australian operations told CIN that it has also been actively recruiting for other areas of the business.

He said that while the company does not comment on staffing developments in specific locations, he could confirm there have been reductions in Australia and Canada.

“But in other areas of the world, they are actually increasing personnel numbers, which reflects the differing economic environments in the [various] parts of the world in which they operate,” he told CIN.

“In terms of overall numbers, they do publish an overall headcount number.

“On February 25 this year, when they announced their full-year results, the worldwide personnel number was 31,700.”

The spokesman said that in the headcount prior to that, which was published in August 2008, the number was 31,400.

“So it’s actually gone up by 300,” he said.

“Overall, as an organisation they have increased [staff numbers], however some regions have suffered job losses as clients have deferred their projects.”

Up like a rocket today Looks to have definitively broken the $20 resistance mark now.

Their presentation definitely has had some positive words on their recently signed contracts.

gfresh: The WOR SP continued to "rocket" today also!!

WOR $23.15 +$1.630 7.57% 1,702,604 shares $38,062,655 @ 08-May 04:26:09 PM

Date----- Close %Inc Volume
8-May-09 23.15 7.57% 1,702,604
7-May-09 21.52 7.71% 2,367,439
6-May-09 19.98 -2.30% 1,178,751
5-May-09 20.45 2.82% 1,909,755
4-May-09 19.89 7.40% 1,085,184
1-May-09 18.52 1.37% 766,408
30-Apr-09 18.27 1.78% 1,311,711
29-Apr-09 17.95 -2.71% 745,135
28-Apr-09 18.45 -1.28% 961,765
27-Apr-09 18.69 -1.42% 839,454
24-Apr-09 18.96 -1.46% 704,180
23-Apr-09 19.24 4.74% 738,562
22-Apr-09 18.37 0.00% 1,075,105

Another view perhaps...
This an an automatic pattern analysis with associated W.3 targets.

(click to expand)

This is the one that got away for me...It was on my list of wonderful company at fair price, it was trading and hovering around $12-$14 bucks between Jan-Feb

I put in an order for $10.50 thinking Mr Market was depress enough to hand me my bargain price I was wrong and it got away

At this price, still look good but no longer provide me the margin of safety
so good luck to all and hope you enjoy the ride....

Time to look for the next wonderful company selling at fair price.

from the business spectator

http://www.businessspectator.com.au...s-Saudi-project-flourishes-RD6WJ?OpenDocument

Mining services company WorleyParsons Ltd says its revenue from a Saudi Arabian phosphate project has almost doubled because the development of the mine and associated facilities will take longer than expected.

The company's contract revenue for Saudi Arabian miner Ma'aden's phosphate project would rise to $US117 million ($A166.03 million) from $US67 million ($A95.08 million), the Sydney-based WorleyParsons said in a statement on Thursday.

WorleyParsons gets half of the contract revenue through its 50 per cent stake in the contractor WorleyParson Arabia.

Ma'aden increased the total contract revenue to $US234 million ($A332.06 million) from $US133 million ($A188.73 million).

Imajica, I thought I must have missed that in Business Spectator, but it's actually a month old announcement. SP responded well at the time, but could do with a bit more good news now.

http://www.marketwire.com/press-release/Industrial-Info-Resources-993774.html

May 22, 2009 05:00 ET

WorleyParsons Wins Contract to Build Armenian Nuclear Plant

Industrial Info ResourcesBANGALORE, INDIA--(Marketwire - May 22, 2009) - Researched by Industrial Info Resources (Sugar Land, Texas) -- WorleyParsons Limited (ASX:WOR) (North Sydney, Australia), one of the world's largest consulting and engineering design firms providing services to the power, hydrocarbons, minerals and metals, and infrastructure and environment sectors, recently secured a contract from the Armenian government to build a new nuclear power plant in Metsamor, Armenia. The project is part of a plan to replace the existing Soviet-era nuclear facility, which generates about 40% of the total power produced in the country. The government plans to put the new plant in operation by 2016 before decommissioning the old plant in 2017. The new plant is estimated to have a capacity of 1,000-1,200 megawatts.

This is a huge contract for Worley parsons and just goes to show how much confidence the world has in our Aussie engineering firm. Glad to be a holder!

Hearing through my Oil and gas grapevine it is going to be WP`s biggest project to date.
Along with the multitide of FSU and middle east projects going on, WP rapidly building up its global position in the top 5 global Energy Engineering companies..
Diversification is becoming Worleys hallmark..
This stock is only going one way...
wheep0

Nice solid rise today considering overall negative day on the market - confirmation of the armenia nuclear plant deal in an official Worley announcement will spark massive interest.

SHARE CAFE COMMENTARY
http://www.sharecafe.com.au/fnarena_news.asp?a=AV&ai=12997

WOR - RBS Australia rates the stock as Hold
BY BROKER NEWS - 26/05/2009

The broker suspended coverage of WorleyParsons after the previous full-year result in August and has now resumed. The broker returns with a Hold rating (previously Buy) and a target of $21.67 (previously $37.80) but given the time away we won't consider this a "downgrade" per se.

The market is treating WOR as if it were fully leveraged to the oil price, the broker notes, but this is to ignore a track record of accretive acquisitions. The challenge now is for WOR to manage its way through the downswing and avoid too much margin compression, the broker suggests. Sector: Energy.

Target price is $21.67.Current Price is $21.57. Difference: $0.10 - (brackets indicate current price is over target). If WOR meets the RBS Australia target it will return approximately 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

SP today close $22.75 up $1.15 or 5.32%

STOCKRADAR reports today:
http://www.egoli.com.au/news/post/Stockradar-WorleyParsons-(WOR).aspx

by Stockradar 27 May 2009 08:25

Stockradar: WorleyParsons (WOR)

Wonderful Worley Parsons lights the spark that leads a buying spree making a clear and powerful statement about a sudden switch to a demand dominated share price. Where to from here and why?

From a low of $11.00 WOR quickly passed though our reversal level and on to $24.00 shortly thereafter. The WOR share price has put in a brilliant recovery in this climate and put in the perspective of a down trend that fell off a ledge up at $54.00 there could easily be more catch up ground to be made yet. Until we reach $30.00 there appears little resistance to stop the price and that will be delivering the roughly 50% bounce which appears to be the natural level for a fall in just about anything to correct. Drop the tennis ball and see how much it corrects (bounces) and there are many more natural events that occur this way. Ask me why and I have no idea apart from it being a law of nature and the stock market is driven by natural beings and their own idiosyncrasies.

As always we are responders and learners as opposed to the many predictors and forecasters that tout themselves as market wizards. The angle of trend is a natural phenomenon according to a very successful and smart trader in WD Gann and then even when we move to astrology we can find answers to some of the intangible questions but as to the ultimate and final piece of the jigsaw, that eludes us all, and that is why the stock market is such an attraction, you’ll never quite understand it completely! So with a big bag of humility on board we can still set about making some money knowing full we will never totally understand it, never beat it all the time, we will take losses as well as profits, and we never know what is going to happen next. It challenges us all in the most unusual way.

Most pursuits as diverse as tennis or chess have rules and in fact to live in a community of people we have to have rules to abide by however trading on the stock market attracts us because there are no rules we are free to trade how, when, and as we like, waste as much money as we like, or maybe make some. Ah no rules in our sometimes overly prescriptive society! Quite refreshing really but the paradox of trading is that you actually need (self imposed) rules to survive or make money, which is what we all ultimately set out to do, and the self imposed rules we need to follow are the hardest as we only have ourselves to answer to. So the lovely 50% bounces, trend angles, or even Mars’s relationship with Sun can be pointed to as “possible why’s” but when it comes to trading we deal with tangible realities of demand and supply and those realities must be simple and readily accessible so as to provide enough (repetitive) information (market edges) for us to act on confidently and to consistently make money from.

There are in fact many ways to make money on the stock market but that “making money” word is a fluid one that can kill a good trader if the wrong expectations are placed on what you can achieve. I am not a long term theme modeller but a nuts and bolts trader. I like the clarity, focus, credibility, repetitiveness, simplicity, and the methodical nature of building a trade plan built on assessing the demand supply pendulum which is constantly in motion with changes in price. Even that, as simple as it sounds, is a challenge at times. When I look at the WOR chart all I see is a down trend followed by a well supported accumulative pattern that in true repetitive form unfolds into an uptrend and one that we can make money from – and that’s the name of our game. A hard-nosed assessment of demand supply in possibly its crudest form is how we generate our profits. Keep your message clear and simple (less room for error) and I have no doubt there is a big place for Gann and the astrologers- just not here.

Should we be surprised by WOR’s performance? I don’t think so as it follows the repetitive cycle of (up) trend, distribution, (down) trend, accumulation and back to an up trending phase again. The bubbling demand profile shows up nicely with the huge volumes flowing through the register between the $11.00 to $15.00 accumulative trading range which when let loose above the “trigger” at $15.00 was free to zoom higher and start stalking the big selling domain and resistance at $30.00. That’s simple and effective “nuts and bolts” analysis and rather than set dubious targets our exit strategy is purely governed by money management rules guided by a stop loss that trundles a certain distance behind the price to extract our chunk of trend and our piece of the profits.

E-mail this story 888

bigdog said:

http://www.marketwire.com/press-release/Industrial-Info-Resources-993774.html

May 22, 2009 05:00 ET

WorleyParsons Wins Contract to Build Armenian Nuclear Plant

Industrial Info ResourcesBANGALORE, INDIA--(Marketwire - May 22, 2009) - Researched by Industrial Info Resources (Sugar Land, Texas) -- WorleyParsons Limited (ASX:WOR) (North Sydney, Australia), one of the world's largest consulting and engineering design firms providing services to the power, hydrocarbons, minerals and metals, and infrastructure and environment sectors, recently secured a contract from the Armenian government to build a new nuclear power plant in Metsamor, Armenia. The project is part of a plan to replace the existing Soviet-era nuclear facility, which generates about 40% of the total power produced in the country. The government plans to put the new plant in operation by 2016 before decommissioning the old plant in 2017. The new plant is estimated to have a capacity of 1,000-1,200 megawatts.

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Construction of Armenian NPP’S New Power Generating Unit May Cost $4 Bln, Energy Minister Says

YEREVAN, September 16. /ARKA/. Construction of the new power-generating unit of Armenia’s nuclear power packaget (NPP) may cost some $4bln, said RA Minister of Energy and Natural Resources Armen Movsisyan.

To attract foreign investments necessary to construct a 1000 MW power-generating unit, Armenian government has announced a monopoly for both units of NPP.

“Taking into account the record-high prices for ingots and equipment, the project may cost $4bln, not $2bln as we packagened before,” the minister said.

The operating unit of Armenia’s NPP will be closed down only after the new one is built, according to Movsisyan.

The power-generating unit will be built in the territory of Metsamor NPP. “This will help save money,” the minister added.

“IAEA (International Atomic Energy Agency), which is one of the main investors of the project, approves of the government’s approach to the construction program,” the minister was quoted saying.

The coordinating board responsible for the power unit’s construction met last Thursday in Yerevan to discuss technical assistance to the program.

The only operating unit with a Russian nuclear reactor generates about 50% of Armenia’s electric power.

In the coming five years, the Armenia NPP will be under the trust management of the INTER RAO UES CJSC. According to specialists, the Armenian NPP in Metsamor can operate until 2016. –0--
16/09/2008 16:0
Note the date of the report Sept 2008. Still it gives some idea of cost and time of the project

Why hasn't this new contract been announced to the asx ? Unless I'm missing something there seems to have been nothing official yet.

sdmartin10 said:

Why hasn't this new contract been announced to the asx ? Unless I'm missing something there seems to have been nothing official yet.

Click to expand...

I did read the article below.

sdmartin10 - yes you are right - there has been no ASX ANN!

Latest ASX ANN:
07/05/2009 11:08 asx TSE: Transfield Worley Trags extension of RasGas Contract
05/05/2009 12:23 asx Appendix 3B
29/04/2009 15:34 asx Appendix 3B
27/04/2009 16:00 asx Appendix 3B