WorleyParsons flags $35m restructure

WorleyParsons will allow for $35 million of restructuring costs this financial year.

Engineering group WorleyParsons will allow for $35 million of restructuring costs this financial year as it reorganises its business but has reaffirmed guidance for underlying net profit.

The resources and energy firm will reorganise into three business lines, saying this will reduce overhead costs and better position the company for earnings growth.

The three divisions will be services, major projects and "Improve", which will cover long-term operational and asset management contracts, effective May 1 with financial reporting changes effective July 1.

After recognising $35 million of restructuring costs this financial year, WorleyParsons expects its overhead reductions and improved project delivery to result in improved margins from next financial year.

The group reaffirmed guidance for underlying net profit for fiscal 2014 of $260m to $300m, stated in November and February, excluding the one-off costs.