WorelyParsons H1 profit drops

WorleyParsons (WOR) has reaffirmed previous guidance for full-year underlying net profit despite a fall in first-half profit due to the contraction in the Australian market and additional project costs.

Profit after tax attributable to members fell by 27.7% to $112.1 million in the six months to December 2013, compared with $155.1 million in the six months to December 2012.

Revenue rose by 9.3% to $4.82 billion in the half-year, from $4.41 billion in the previous corresponding period.

The group will pay a dividend of 34 cents per share, of which 8.5 cents per share will be franked, on March 31 to shareholders who are on the register on March 7.

Meanwhile, the group's underlying profit after tax fell by 35.1% to $100.7 million in the half-year, compared with $155.1 million in the previous corresponding period.

In November, the group downgraded its guidance for first-half underlying profit to $90 million to $110 million after facing a delay in upturn in its markets.

WorleyParsons reaffirmed its full-year underlying profit guidance of $260 million to $300 million, given in November, after it cut its earlier forecast of $322 million.

Chief executive officer Andrew Wood noted that the half-year earnings were in line with guidance.

"Notwithstanding the impacts weaker than expected market conditions are having on our performance, the cost reduction program we implemented together with the momentum from recent contract awards should position us for medium term growth," Mr Wood said.

"The diversity of our business in terms of its geography, industry and service offering remains a fundamental strength."