WorleyParsons sinks to loss

WorleyParsons, an Australian provider of technical, project and operational support services, today announced a net loss of $54.9 million in its full year results 2015 report, which represents a 122% fall when compared to last year’s $249.1 million profit. 

This included the recognition of a non-cash impairment of goodwill of $198.6 million (approximately 10% of total goodwill).

Underlying net profit after tax (NPAT) was $198.6 million for the 12 months to June 30, 2015, down 24.6% on the previous corresponding period.

In addition, the company reported a 1.8% drop in its aggregated revenue of $7.227 billion compared to 7.363 billion last year.

Chief Executive Officer of WorleyParsons, Andrew Wood, said: “Aggregated revenue has only modestly declined by 1.8%, against a backdrop of significant declines in market activity. Sustained low commodity prices and the fall in oil prices have resulted in our customers reducing capital and operating expenditure. 

“We have been taking action since 2013 to reshape the business to align it with market activity. These actions in Financial Year 2015 resulted in redundancy and onerous lease charges being recognized. When combined with increased competition and concessions negotiated with customers, this has led to a reduction in our margin.

To remind, in May 2015, WorleyParsons laid off over 2000 employees due to deterioration in workload since February as a result of the sustained weakness in commodity prices.

“The further deterioration in our markets since May has resulted in us taking further action beyond those previously announced, the cost impact of which has been recorded in the Financial Year 2015 earnings. We now employ 31,400 people operating out of 148 offices across 46 countries, compared with 35,600 people across 157 offices at 30 June 2014.

This means that, as a result, WorleyParsons’ workforce was reduced by 4200 people over 12 months.

In addition, Offshore Energy Today reported last Friday that WorleyParsons had wielded its axe and announced a wave of layoffs in Norway citing tough market conditions.

Outlook

Andrew Wood said: “We will continue to balance the long term sustainability of the business with the need to align our operations to market conditions in the short term as we deploy our recently announced strategy for growth in the medium to long term. WorleyParsons is well positioned to deliver on our strategy through Financial Year 2016 and beyond, so we can realize our future.”

Offshore Energy Today Staff

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