WorleyParsons shares surge after a big jump in profits defies strong local currency
ENGINEERING giant WorleyParsons has recovered from a weak first-half to post a 25 per cent jump in full-year net profit.
ENGINEERING giant WorleyParsons has recovered from a weak first-half to post a 25 per cent jump in full-year net profit.And despite the company being adversely affected by the high Australian dollar and the instability in the Middle East, long-serving chief executive John Grill buoyed investors by tipping "good growth" in underlying earnings next year."It is an encouraging sign that the company is on a sound growth footing," Mr Grill said.Shares in WorleyParsons surged $2.37, or 10 per cent, to $26.07 at the close of trade yesterday.Net profit rose from $291.1 million to $364.2 million.WorleyParsons, which has contracts on high-profile projects including the BP-led development of Iraq's super-giant Rumaila oilfield and Queensland's Curtis LNG facility, increased its revenue by 12 per cent from $5.1 billion to $5.68 billion in the year to June 30.Mr Grill said multinational companies were increasingly contracting on a worldwide basis via global service agreements, which bodes well for the company, which employs more than 35,000 staff in 43 countries.The group's full year net profit was negatively impacted by the higher Australian dollar, which took $31.5 million in value, WorleyParsons said.Another $15 million was lost because of instability in the Middle East and natural disasters in other markets.Among WorleyParsons' business segments, all posted higher earnings than in the previous year, with the exception of its minerals and metals business."WorleyParsons is one of only a handful of contractors with the capability to provide the depth and breadth of services our large multinational customers require on a global basis," Mr Grill said.WorleyParsons has global agreements in place with BP, Rio Tinto, Chevron, Du Pont, Vale and Anglo American.The company declared a 50? final dividend, to be paid on September 27.