Global Markets: WorleyParsons achieves strong cash flow in FY2014

WorleyParsons Limited said its revenue was up by 9% by $9.583 million, while the operating cash flow rose 24% to $550 million compared to $444 million in the previous corresponding period.

The company statutory net profit after tax (NPAT) was $249 million, while the underlying NPAT was $263 million for the 12 months to 30 June 2014, down 18% on the previous corresponding period.

Chief Executive Officer of WorleyParsons, Andrew Wood, said, “The Company reports earnings for the 12 months to 30 June 2014 in line with guidance we gave in November 2013 excluding the impact of costs of the organizational restructure.

“Aggregated revenue and NPAT were down when compared to FY2013 primarily due to the downturn in the Australian business, previously the major contributor to the Company’s earnings, and additional project costs in WorleyParsonsCord experienced in the first half. WorleyParsonsCord’s performance in the second half improved significantly with these legacy project issues having had no further impact on its results,” he added.

“The reorganization announced in April is essentially complete and we are significantly progressed in achieving the objectives we set ourselves – that is to simplify the corporate structure, reduce overhead costs and enable our staff to deliver greater customer satisfaction. We have refocused our strategy to more aggressively leverage our broad and deep technical capabilities and our diverse geographic presence,” Wood said.

Approximately 1,200 overhead roles were removed in the second half as part of the organizational restructure announced in April 2014. As foreshadowed, this resulted in a reorganisation charge of $35.4 million before tax. This is in addition to the previously announced reduction of 500 overhead roles in the first half.