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.
At 11.10am (AEST) WorleyParson shares were 6.27% higher at $16.45, against a benchmark index lift of 0.9%.
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.