WOR - Worley Limited

Egypt seeks Australian help with nuclear power plant

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Teresa Ooi | May 05, 2009
Article from: The Australian

ENGINEERING services group WorleyParsons is understood to have been approached by Egypt to be the lead consultant for the building of the country's first nuclear power plant.

Reports out of Egypt said negotiat*ions with tender winner, the US-based Bechtel Power, had fallen over and WorleyParsons engaged.

WP declined to comment, with a spokesman saying the company never made any comment on media speculation.

Shares in WP soared more than 7 per cent or $1.37 to close at $19.89 after news of Egypt's approach to WP broke overseas.

If negotiations with WP are successful, the company would choose the technology and the site for the nuclear reactor.

WP would also be responsible for the quality control of the project, train staff to operate the power plant and provide other technical services, the Middle East News Agency in Egypt said on Sunday.

WP was the under-bidder in a tender process to be a consultant on Egypt's plans to build its first nuclear power plant.

The tender was conducted by Egypt's Ministry of Electricity and Energy.

A ministry official told MENA an approach had been made to WP for a 10-year consultancy worth $US180 million ($242 million). MENA did not explain why negotiations between the ministry and the tender winner, Bechtel Power failed.

Anyone know what became of this project? The Armenian neuclear project could be speculation as well. If it was going to happen WP would have informed the ASX by now.

I can't see how both of these contracts could be completed simultaneously. You simply can't expand that quickly in one specialist area. Given there are no announcements I can only conclude that no contracts have been signed.

http://www.istockanalyst.com/article/viewiStockNews/articleid/3257052

WOR - WorleyParsons JV Contract With Esso Highlands in PNG 1/1Wednesday, June 03, 2009 9:51 PM

WorleyParsons JV contract with Esso Highlands in PNG

Sydney - Thursday - June 4: (RWE Aust Business News) - WorleyParsons (ASX:WOR) joint venture with Kellog Brown & Root, Eos JV, has been awarded a project services contract by Esso Highlands for the Papua New Guinea liquid natural gas project (PNG LNG).

The agreement extends to the end of 2014.

The agreement facilitates requests from Esso Highlands to provide engineering, training, in-country support services and integrated project team services for construction and project management.

It maintains Eos' engagement in the upstream component of the proposed PNG LNG development following the completion of Eos' current FEED services contract.

Services will be provided from Brisbane, Australia and a number of sites in Papua New Guinea.


04/06/2009 WorleyParsons announces PNG LNG project services contract
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00958378

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http://www.sharecafe.com.au/fnarena_news.asp?a=AV&ai=13163

WOR - Deutsche Bank rates the stock as Buy
BY BROKER NEWS - 09/06/2009

The broker notes WorleyParsons has outperformed the index by 60% in 2009. This demonstrates growing confidence in oil & gas sector capex irrespective of the lower oil price, the broker suggests. Despite the jump, WOR is still 40% below its historical PE.

On that basis, and M&A potential, the broker still sees upside. Buy retained. Target rises from $20.65 to $24.70. Sector: Energy.Target price is $24.70.Current Price is $22.80. Difference: $1.90 - (brackets indicate current price is over target). If WOR meets the Deutsche Bank target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).
352

WOR SP up 71 cents today to $24.84 at 2:30 PM after two new contracts announced.

52 Week High 39.5200
52 Week Low 10.6200

22/06/2009 Award of PMC contracts for Integrated Gas Development
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00962474

19/06/2009 WorleyParsons awarded two nuclear power plant contracts
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00961958

659

sdmartin10 said:

I can't see how both of these contracts could be completed simultaneously. You simply can't expand that quickly in one specialist area. Given there are no announcements I can only conclude that no contracts have been signed.

Click to expand...

A little over 3 weeks later WOR comes out with announcements re contracts for Armenian and Egyptian projects. Good news but late in coming.

Another contract, announced today, yet the SP has been trending down in the last few weeks.

"Oakajee Port and Rail (OPR) is pleased to announce the appointment of WorleyParsons to fulfil the role of Project Management Study Contractor (PMSC) for the new Oakajee bulk commodity supply chain in Western Australia’s mid-west."

Does anyone have any thoughts on why this stock isn't going up?
Rather, SP has eased back $5 in the last month.

Is there something inherently bad with companies that service mining companies at the moment.

WOR SP $26.00 up 55 cents or 2.16% @ 15:13 today

11/08/2009 5 year contract renewal award in Canada
http://www.asx.com.au/asxpdf/20090811/pdf/31k12gw2x2zs29.pdf

http://www.news.com.au/perthnow/story/0,21498,25913204-951,00.html?from=public_rss

Worley subsidiary extends Canada contract
August 11, 2009 08:36am

WORLEYPARSONS says its Canadian subsidiary's contract for Syncrude CoSyn and Imperial Oil upstream alliances has been extended for at least five years.

Worley says the business relationships with them began in 1991 to provide a full range of engineering services to brownfield projects at the Syncrude and Imperial Oil upstream facilities.

WorleyParsons Canada Services Ltd was awarded a five-year contract renewal with a five year extension option, the company said in a statement on Tuesday.

"Around 720 WorleyParsons personnel are deployed on the alliance project teams in Alberta with expected annual revenues of approximately $C100 million ($A109.9 million)," WorleyPasons said.

WorleyParsons provides services to the oil and gas, minerals and metals, power and infrastructure sectors.

The market did not like today's ANN
WOR 26.11 -0.730 -2.72% high of 26.47 and low of 25.21 387,183 shares $9,960,177 @ 24-Aug 10:19:45 AM

24-08-2009 09:33 AM WOR Media Release - Full Year Results
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00980123

WorleyParsons announces record profit

Highlights

Net profit after tax up 13.6% to $390.5 million

Revenue growth of 27.0% to $6,225.1 million

EBITDA growth of 18.1% to $693.2 million

Operating cash flow up 174.8% to $546.4 million

Final dividend increased to 55 cents per share, fully franked

Strong performance in mega-projects and long-term contracts

Strengthened balance sheet achieved with no equity dilution

Significant financial capacity to pursue further growth opportunities

Professional services company WorleyParsons Limited (the company) today announced a net profit after tax for the 12 months to 30 June 2009 of $390.5 million, an increase of 13.6% on the $343.9 million net profit reported for the same period to 30 June 2008.

The result was earned on aggregated revenue of $6,225.1 million, an increase of 27.0% on the $4,900.7 million reported in the previous corresponding period.

EBITDA for the period was $693.2 million, an increase of 18.1% on the prior corresponding period. The EBITDA margin for the group was 11.1%.

Basic earnings per share (EPS) were 161.1 cents, an increase of 13.0% from the 142.5 cents per share reported in 2008.

The result was underpinned by a strengthened balance sheet, with operating cash flow of $546.4 million (2008: $198.8 million), gearing of 25.5% (2008: 31.4%), a 0.7% reduction in average cost of debt to 5.5% and increased total available debt facilities of $1,376.1 million.

The profit performance achieved in the year and underlying quality of assets utilized in the business have resulted in an increase in return on equity, that is, net profit after tax to shareholders funds, to 25.4% (2008: 24.6%).

The company’s strong financial performance has been achieved without the need to raise additional equity during the year. WorleyParsons continues to be well-positioned to pursue further growth opportunities.

Dividend declaration
The Directors have declared a final dividend of 55 cents per share; fully franked (2008: 47.5 cents per share, franked at 71.0%). Combined with the half year dividend, the company will make total dividend payments of 93 cents per share for the year. (2008: 85.5 cents per share) The dividend will be paid on 28 September 2009 for shareholders on the register as at midnight (Australian Eastern Standard Time) on 3 September 2009.

Reason for drop in SP!!!
SP now $25.86 down down 98 cents at 10:24

http://business.smh.com.au/business/worleyparsons-profit-up-predicts-a-drop-20090824-evmt.html

WorleyParson's profit up, predicts a drop

August 24, 2009 - 9:52AM
Australian Engineering services group WorleyParsons reported a 13.6 per cent rise in full-year profit, as it won a series of contracts to work on oil, gas and power projects.

It warned it was unlikely to repeat the performance in fiscal 2010, saying it expected a modest fall in earnings.

Net profit rose to $390.5 million for the year to June from $343.9 million a year earlier, below analysts' forecasts of around $417 million, according to estimates tracker IBES.

For the year ahead, analysts on average were expecting its profit to fall about 3 per cent before the result was released, forecasting its margins would come under pressure.

WorleyParsons shares have doubled in value so far this year, more than five times the gain in the broader market. Merrill Lynch said last week the stock was looking expensive relative to its peers.

Thanks for posting those details big dog. I wasn't able to access the link from E-trade to the results.

Do you hold WOR?

Julia said:

Thanks for posting those details big dog. I wasn't able to access the link from E-trade to the results.

Do you hold WOR?

Click to expand...

Yes I have held Worley Parsons since early 2006 and have watched them rise and fall. I also topped up with the last SPP.

bigdog said:

Yes I have held Worley Parsons since early 2006 and have watched them rise and fall. I also topped up with the last SPP.

Click to expand...

It was geting a little expensive I think


Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 140.8 170.5 168.1 180.2
DPS 85.5 85.5 89.0 92.0



thx

MS

bigdog said:

Reason for drop in SP!!!
SP now $25.86 down down 98 cents at 10:24

http://business.smh.com.au/business/worleyparsons-profit-up-predicts-a-drop-20090824-evmt.html

August 24, 2009 - 9:52AM
Australian Engineering services group WorleyParsons reported a 13.6 per cent rise in full-year profit, as it won a series of contracts to work on oil, gas and power projects.

It warned it was unlikely to repeat the performance in fiscal 2010, saying it expected a modest fall in earnings.

For the year ahead, analysts on average were expecting its profit to fall about 3 per cent before the result was released, forecasting its margins would come under pressure.

WorleyParsons shares have doubled in value so far this year, more than five times the gain in the broader market. Merrill Lynch said last week the stock was looking expensive relative to its peers.

Click to expand...

October 27 Worley closed down $2.32 at $26.68 after ASX ANN Oct 27

SP has recovered 59 cents today at 10:26!!

http://au.news.yahoo.com/thewest/bu...615/worleyparsons-warns-on-currency-exposure/

WorleyParsons warns on currency exposure
The West Australian October 27, 2009, 1:37 pm

Engineering firm WorleyParsons says a strong Australian dollar is hurting its foreign currency earnings and could shave $35 million to $40 million from its expected 2009/10 net profit.

The bouyant currency had already led to a performance that was below expectations in the first quarter of the financial year, chairman Ron McNeilly told shareholders at the group's annual general meeting in Sydney on Tuesday.

"We expect this trend to continue in the second quarter," Mr McNeilly said.

"We are projecting a more significant weighting of earnings to the second half of the financial year, but with our first half year result predicted to be well below that of the corresponding period last year.

"If today's currency rates ... were to reflect the average translation rate of foreign currency earnings for the remainder of the financial year, the expected net profit impact for the full year would be in the order of $35 to $40 million.

"This impact would be additional to the modest reduction in net profit predicted in our August outlook statement."

WorleyParsons said in August that uncertain market conditions made it unlikely it would repeat its 2008/09 result - when net profit rose 13.6 per cent to $390.5 million - in the 2010 financial year.

However, Mr McNeilly said the company was confident that its medium and long-term prospects remained strong "based on our competitive position and our financial capacity", which positioned it "to pursue growth opportunities that may arise".

The company had cash and cash equivalents of $178.3 million, current liabilities of $1.01 billion, and debt facilities of $1.376 billion at the end of June.

"The company continues to evaluate opportunities for new business growth that would add to our existing capabilities," Mr McNeilly said.

Chief executive John Grill said the company had "proven extremely resilient through this tumultuous economic climate", was currently involved in numerous multi-billion dollar projects and was "well positioned for long-term growth".

"We are also actively tracking a large number of potential new mega-projects and anticipate a significant pool of new work will be released as the global economy recovers translating into new capital investments in our markets," Mr Grill said.

"While the rate of new project development is likely to be subdued in 2010, early phase study and feasibility work should position WorleyParsons strongly when these projects recommence."

Shares in Worley closed down $2.32 at $26.68

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WOR - Likely foreign takeover? And when

Anyone have a view about the AFR Weekend edition article about WOR being a $6bn meal for a bigger company wanting exposure to oil and gas? What is the likely takeover premium to the WOR share price if this happens or is Grill to wedded to his 14% stake?

Re: WOR - Likely foreign takeover? And when

StumpyPhantom said:

Anyone have a view about the AFR Weekend edition article about WOR being a $6bn meal for a bigger company wanting exposure to oil and gas? What is the likely takeover premium to the WOR share price if this happens or is Grill to wedded to his 14% stake?

Click to expand...

What a nice thumping noise it made when it fell 11% this morning. Currency issues, project delays... there may be a pattern across some of these engineering service firms. The budget cuts made mid last year by the big mining / oil and gas firms are now flowing through to a poor half year for their suppliers. Wouldn't be surprised if a few other firms in this area will have similar downgrades.

I closed a short on this 2 days ago as part of a pairs trade These silly management can't even get their media release timing right. Darn it!

I am not suprised by the drop today as i have a close friend working or lets say worked for WOR. If workers are not getting relocated to other projects it only means no work. Am I shocked by todays fall not all.
PS not a holder of the share but watching the horizon!

SKC It sure did land with a thud! That's if it has landed. What a great stock for a day trade though! Taken a few positive chunks in this last run-up. I still think it's a solid company though.... What's your thoughts??

3 veiws of a secret said:

I am not suprised by the drop today as i have a close friend working or lets say worked for WOR. If workers are not getting relocated to other projects it only means no work. Am I shocked by todays fall not all.
PS not a holder of the share but watching the horizon!

Click to expand...

I know a few people working there and they have been quiet as well...

Ezyoptions said:

SKC It sure did land with a thud! That's if it has landed. What a great stock for a day trade though! Taken a few positive chunks in this last run-up. I still think it's a solid company though.... What's your thoughts??

Click to expand...

It's nothing just about buying a solid company. It's about buying solid company at a great price.

I don't mind it as a company but I think the market has always priced it as a very high growth company. i.e. very expensive. With profit expected to be ~$300m, it's still trading at PE 20. So I am with you questioning whether is has landed.

I will look at it when PE hits 12...

Just looking across the sector that WOR is focused in ,other players in this niche market are being touched by what is happening to WOR ...I think BKN is in positive territory ...
But I agree with one of you that it has been a day trading share to play with....