Worley Limited · ASX:WOR
Worley — H1 FY2004 Earnings Presentation
16 slides from Worley's earnings presentation, Feb 27, 2004
Slide 1: Half Year Results
HALF YEAR RESULTS 31st December 2003 John Grill, Managing Director & Chief Executive Officer David Housego, Chief Financial Officer 27-Feb-04 HYDROCARBONS | MINERALS, METALS & CHEMICALS | INDUSTRIAL & INFRASTRUCTURE | DEVELOPMENTS
Slide 2: Background
Background n Leading professional services provider to the Energy, Resource and Complex Process Industries n Across all phases of projects 1 2 3 4 5 IDENTIFY SELECT DEFINE EXECUTE OPERATE Licences Appraisal Asset Dev’t Plans Detailed Design Maintain Exploration Concept Eng’g Front-end Design Constru
Slide 3: International Operations
International Operations Canada Iraq Iran United States China Qatar Saudi Arabia UAE Oman India Thailand Malaysia Brunei Trinidad Singapore Indonesia Australia New Zealand 18 Countries 42 Offices Over 4500 Personnel
Slide 4: Financial Performance
Financial Performance Half Year Half Year Full Year ended ended 2003 31 Dec 2003 31 Dec 2002 Aggregated Revenue 242.3 235.8 474.4 EBITDA 21.3 20.5 41.5 EBIT 16.6 15.7 32.1 Margin % 6.9% 6.7% 6.8% Net Profit 12.8 11.5 25.9 Margin % 5.3% 4.9% 5.5% Impact on first half aggregated revenue of AUD/USD app
Slide 5: YTD Significant Wins & Extensions
YTD Significant Wins & Extensions IDENTIFY 1 WorleyParsons Energy Licences Services Exploration Strategic Fit SELECT Appraisal 2 Concept Eng’g Nth Beluit Conoco Phillips Uncertainty Mgt Santos Casino Development Tehran Tower Sri Lanka Power Station (Leightons) DEFINE 3 WPES Sakhalin Asset Dev’t Plan
Slide 6: Highlights - Hydrocarbons
Highlights - Hydrocarbons
Slide 7: Highlights - Hydrocarbons
Highlights - Hydrocarbons n Excellent South East Asian performance n Iraq Repair and Continuity Operations award n WorleyParsons Energy Services Houston Joint Venture n Good project performance in Australia n Integrated Service Contracts continue to perform well n Middle East mixed; Saudi performing
Slide 8: Highlights – Minerals, Metals & Chemicals
Highlights – Minerals, Metals & Chemicals
Slide 9: Highlights – Minerals, Metals & Chemicals
Highlights – Minerals, Metals & Chemicals n 37% growth; 15% of Group revenue n Alliance start-ups progressing well n Project performance on light metals Nickel Aluminium Alumina n Looking to increase technical and geographic coverage
Slide 10: Highlights – Industrial & Infrastructure
Highlights – Industrial & Infrastructure
Slide 11: Highlights – Industrial & Infrastructure
Highlights – Industrial & Infrastructure n 68% growth; 15% of Group revenue n Strong result in Power & Water n Additional capability; Geosciences n Looking to increase technical and geographic coverage
Slide 12: Developments
Developments n Strategy progressing well n Esperance Energy Project On track Commercial operation scheduled for March 2004 n Power Purchase Agreement for Exmouth Energy Project $20 - $30m CAPEX Pipeline option being considered n Waste opportunities emerging
Slide 13: Iraq Consortium
Iraq Consortium n 16 January 2004 contract awarded by USACE n Contract to be executed by Parsons Worley team n Repair and continuity operations for northern region n US$ 0.5m – US$ 800.0m n Share increased from 35 to 37½% n Initial mobilisation commenced n Expect that Iraq will contribute materially
Slide 14: Differentiators
Differentiators 1. Outstanding Operational and Corporate Performance 2. Focus on Long-term Contracts; Integrated Services Contracts (ISCs) and Alliances 3. Success in Project Delivery; Large and Small 4. Comprehensive Geographic Presence and Industry Capability 5. Identification, Integration and Gro
Slide 15: Financial Position and Cashflow
Financial Position and Cashflow n Cash position - $24.4m n Undrawn bank facilities - $43.6m n Associates share of profits - $4.4m (2003 $2.8m) Reducing tax rate as share of profit of associates is after tax Profits retained within the associates to fund growth n Effective tax rate - 24.1% (2003 25.7
Slide 16: Outlook
Outlook n Negative effect of strong Australian dollar n Positive effect of Iraq contract. Uncertainty as to speed of ramp up. n Solid increase in long term & alliance contracts n Worley load in core business sound with good prospects n Stronger performance in second half. n Earning growth in full ye