Worley Limited · ASX:WOR
Worley — WorleyParsons — H1 2011 Earnings Presentation
44 slides from Worley's earnings presentation, Feb 23, 2011
Slide 1: Half Year Results 2011
For personal use only H lf Y Half Year R Resultlt 2011 John Grill 1
Slide 2: Overview
Overview For personal use only X Improved conditions in second quarter X Improved conditions in a number of key markets ● Upstream p hydrocarbons y strong g ● Canadian oil sands improving X Continued success in long g term contracts and global relationships X Ongoing demand for EcoNomics services as
Slide 3: Challenges
Challenges For personal use only X Challenging conditions in some markets k t • US power sector • US d downstream t h hydrocarbons d b sector X Continued negative impact of Australian dollar X Queensland, Middle East and North Africa operations interrupted TVA Hydro power, USA
Slide 4: Financial Overview
Financial Overview For personal use only X Aggregate revenue $2,916.4m up 14.5% X Net profit after tax $128.6m down 6.8% X Operating p g cash flow $124.7m $ down 15.5% X Earnings per share 52.4 c/s down 7.7% X Dividend 36 0 c/s 36.0 fully franked X Negative FX translation impact of $14.1m X Strong f
Slide 5: People
People For personal use only 32,900 personnel 41 countries
Slide 6: Safety Performance
Safety Performance For personal use only CATEGORY FY10 1H11 Total Recordable Case (TRC) Frequency Rate* 0.15 0.09 Lost Workday Case (LWC) Frequency Rate* 0.02 0.02 * WorleyParsons applies the US OSHA reporting requirements MAJOR SAFETY ACHIEVEMENTS IN THE PERIOD ● 75 million illi hours h LWC ffree o
Slide 7: Material Award – BP Iraq
Material Award – BP Iraq For personal use only X Customer(s): BP Iraq, Petrochina (CNPC), Iraq State Oil Marketing Organisation (SOMO) X Scope of Services: Conceptual D i Design, FEED and d services i tto b boostt production from the super-giant Rumaila Oil Field, Iraq X World’s second largest produ
Slide 8: Material Award – QGC
Material Award – QGC For personal use only X Customer: QGC X Project: Queensland Curtis Island LNG facility X Scope: Detailed S D t il d engineering i i and d procurement services for the upstream gas field and related infrastructure X Potential Revenue: > $580m X Execution Centre: Brisbane
Slide 9: Material Award – ExxonMobil Hebron
Material Award – ExxonMobil Hebron For personal use only X Customer: ExxonMobil Canada X Scope of Services: FEED with option for engineering, procurement and construction services (ExxonMobil’s discretion) X Execution centres – Houston, USA and St John’s John s in Canada X Estimated revenue for full
Slide 10: Additional Material Awards
Additional Material Awards For personal use only BP – Global Agreement • Onshore Facilities Developments • Engineering & Project Management Services ExxonMobil Sakhalin 1 Artukun Dagi Platform – Russia • Increased Scope • Est. Rev. – US$500m $ MEG Energy – Canada • Christina C Lake S SAGD G Facility
Slide 11: Additional Material Awards
Additional Material Awards For personal use only Gazprom - Russia • Shtockman Phases 2 & 3 • Front End Engineering Services (FEED) ConocoPhillips – North Sea • Jasmine Area Development • Detailed Design and Procurement Services E ExxonMobil M bil – Canada C d • Hebron Project - Est. Rev. - A$285m •
Slide 12: Significant Improve Awards & Renewals
Significant Improve Awards & Renewals For personal use only MEG ENERGY Master Services Agreement SHELL SUNCOR National Services Agreement Supplier of Choice Agreement Multi Regional Agreements Anglo American SASOL SHELL USA IMPERIAL OIL Rio Tinto Integrated Procurement Services Pipeline & terminals
Slide 13: Kv3 Overview
Kv3 Overview For personal use only X Kwezi V3 Engineers - Leading multi- disciplinary infrastructure engineering consultancy based in South Africa X Investment – A$45.4m X Majority of clients are government bodies, including local and provincial governments and state-owned state owned enterprises X
Slide 14: Financial results
For personal use only Fi Financial i l results lt David Housego 14
Slide 15: Financial Profile
Financial Profile For personal use only $m HY10 HY11 vs. HY10 vs. 2H10 Aggregated Revenue 2,548.1 2,916.4 14.5% 20.6% EBIT 209.8 202.5 (3.5%) (6.9%) EBIT margin i 8 2% 8.2% 6 9% 6.9% (1 3%) (1.3%) (2 1%) (2.1%) Net profit 138.0 128.6 (6.8%) (16.0%) Net profit margin 5 4% 5.4% 4 4% 4.4% (1 0%) (1.0%)
Slide 16: Financial Profile
Financial Profile Revenue1 $m For personal use only EBIT Margin % 6,219.4 4,882.4 4 967 1 4,967.1 10.7 3,525.4 9.7 2,916.4 9.1 8.6 3 256 1 3,256.1 81 8.1 2,354.1 2,548.1 6.9 1,455.8 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Net profit $m 390.5 343 9 343.9 X Strong revenue growth St th 2
Slide 17: Change In Net Profit
Change In Net Profit HY11 vs. HY10 For personal use only (8.4) 10 5 10.5 4.4 (3.0) (1.7) (14.1) 1.0 0.5 14 1.4 $m m 138.0 128 6 128.6 HY10 Hydrocarbons Power Minerals & Infrastructure Corporate Net borrowing Income Tax Minority FX Impact HY11 Metals & overhead costs Interest Environment
Slide 18: Hydrocarbons
Hydrocarbons Revenue 1 $m For personal use only HY11 Revenue1 % by Region 4,740.1 USLAC 18% 3,604.8 , 3 425 4 3,425.4 AME 21% 2,579.1 2,373.7 1,869.1 1,950.3 1,768.9 1,760.3 1,026.0 817.3 E&A 18% ANZ 17% 2006 2007 2008 2009 2010 2011 Revenue % of Group 71.9% 73.2% 73.8% 76.2% 69.0% 66.9% Canada EBIT
Slide 19: Power
Power For personal use only HY11 Revenue1 % by Region Revenue 1 $m AME 9% 546.3 509.4 465.9 437.4 367.8 ANZ 21% 289.3 303.3 USLAC 45% 247.3 217 7 217.7 173.2 188.1 Canada 7% 2006 2007 2008 2009 2010 2011 Revenue % of Group 15.0% 12.4% 9.5% 8.8% 10.3% 10.4% E&A 18% EBIT Margin 13.0% 13.2% 13.0% 12.2%
Slide 20: Minerals & Metals
Minerals & Metals For personal use only HY11 Revenue1 % by Region Revenue 1 $m USLAC 583.0 562.5 11% 469.3 E&A 3% AME 26% Canada 318.1 10% 291.4 371.8 239.8 200.8 214.1 112.9 129.3 2006 2007 2008 2009 2010 2011 ANZ 50% Revenue % of Group 8.2% 8.3% 9.6% 9.4% 11.3% 10.9% EBIT Margin 13.8% 14.7% 17.0%
Slide 21: Infrastructure & Environment
Infrastructure & Environment For personal use only HY11 Revenue1 % by Region Revenue 1 $m 469.8 342.4 350.0 344.7 USLAC 9% AME 16% E&A 10% 214.9 191.9 221.3 Canada 121 6 121.6 162.0 16% 112.4 31.5 ANZ 49% 2006 2007 2008 2009 2010 2011 Revenue % of Group 4.9% 6.1% 7.0% 5.6% 9.5% 11.8% EBIT by Region
Slide 22: Cash Flow
Cash Flow For personal use only $m HY08 HY09 HY10 HY11 EBITDA 263.1 354.5 252.2 249.2 Interest and tax paid (75.0) (102.9) (132.3) (56.0) Working capital / other (76.5) (17.1) 27.6 (68.5) Net cash inflow from operating activities 111.6 234.5 147.5 124.7 g activities Net cash outflow from investing (
Slide 23: Liquidity & Gearing
Liquidity & Gearing For personal use only Key Metrics Jun-09 Jun-10 Dec-10 Liquidity Summary $m Jun-09 Jun-10 Dec-10 G i ratio Gearing ti 25 5% 25.5% 25 8% 25.8% 23 8% 23.8% L Loan & OD ffacilities iliti 1 376 1 1,376.1 1 286 1 1,286.1 1 129 2 1,129.2 Facility utilization 54.2% 60.8% 62.5% Less: fac
Slide 24: Sector Performance & Outlook
For personal use only Sector S t Performance P f &24Outlook - John Grill
Slide 25: Hydrocarbons
Hydrocarbons For personal use only X Strong performance in unconventional gas X Maintaining premier position in upstream offshore market X Continued recovery in oil sands X Onshore oil market strong through Middle East X Leadership in deepwater and subsea markets X Increasing LNG presence in global
Slide 26: Hydrocarbons Major Projects
Hydrocarbons Major Projects For personal use only SHELL SAMREF SHELL EXXONMOBIL Alliance Contract Clean Fuels Kashagan Arkutun-Dagi Platform Full Field Development SHELL Albian Sands Expansion 1 TOTAL Joslyn North Mine EXXONMOBIL Singapore Parallel Train WOODSIDE Pluto EPCM KEY PROJECT
Slide 27: Hydrocarbons Projects & Key Awards
Hydrocarbons Projects & Key Awards For personal use only SHELL HUSKY ENERGY SAMREF SHELL EXXONMOBIL Alliance Contract Sunrise Energy Clean Fuels Kashagan Artukun Dagi Platform Full Field Development SHELL CONOCO PHILLIPS Albian Sands Expansion 1 Jasmine Offshore BP EXXONMOBIL Rumaila FEED TOTAL Hebr
Slide 28: Hydrocarbons Outlook
Hydrocarbons For personal use only OUTLOOK ● Unconventional gas sector opportunities are being realized in Australia, Oman and Canada ● Ongoing improvement in the Canadian oil sands market ● Strength in the upstream market has resulted in a number of significant awards in Canada, Southeast Asia, Mid
Slide 29: Power
Power For personal use only X Strong presence in nuclear market • Feasibility studies and program management in the developing world • Operations and maintenance support in developed world X Air quality control market continues to show positive signs X Networks market showing strong growth in a numb
Slide 30: Power - Projects
Power - Projects For personal use only TENNESSEE VALLEY AUTHORITY Plant Support contract NUCLEAR POWER PROGRAM QATAR PETROLEUM Egypt gyp Halul Power Supply NUCLEAR POWER PROGRAM Jordan NUCLEAR POWER PROGRAM NEK Armenia Belene Nuclear Power VERVE ENERGY Power Services LOY YANG POWER Mine and Power St
Slide 31: Power - Projects & Key Awards
Power - Projects & Key Awards For personal use only TENNESSEE VALLEY AUTHORITY Plant Support contract NUCLEAR POWER PROGRAM QATAR PETROLEUM BRUCE POWER Egypt gyp Halul Power Supply New water demineralising plant TENNESSEE VALLEY AUTHORITY NUCLEAR POWER PROGRAM INTER RAO UES Fossil and Hydro Services
Slide 32: Power Outlook
Power Outlook For personal use only OUTLOOK ● Continued Contin ed foc focuss on support s pport for projects across the developing world ● Attractive market for nuclear services across almost all geographies ● Improve services in developed world markets remains a priority ● Focus on air quality proj
Slide 33: Minerals & Metals
Minerals & Metals For personal use only X Expanding presence with Tier 1 customers worldwide X Significant number of studies underway as the new phase of industry investment commences X “Pit to Port” solutions being well received by the market for stranded iron ore and coal X Revival of iron ore and
Slide 34: Minerals & Metals Projects
Minerals & Metals Projects For personal use only MA’ADEN PHOSPHATE Phosphate development US STEEL Continuous Annealing Line MA’ADEN ALUMINA Alumina development ALMATIS Phase III project FORTESCUE METALS GROUP 2nd Port Outloader Circuit SASOL Shondoni project VALE S11D Iron Ore GINDALBIE METALS Karra
Slide 35: Minerals & Metals Projects & Studies
Minerals & Metals Projects & Studies For personal use only MA’ADEN PHOSPHATE Phosphate development US STEEL Continuous Annealing Line MA’ADEN ALUMINA KCM BULGARIA Alumina development Lead Smelter project EVONIK QDCC Carbon Black plant ALMATIS Phase III project ORICA FORTESCUE METALS GROUP Prill Plan
Slide 36: Minerals & Metals Outlook
Minerals & Metals Outlook For personal use only OUTLOOK ● China and India remain the pre-eminent demand drivers ● Conditions in the sector have improved with strong evidence of additional capital spending by customers ● Trend towards regional and global service agreements g with major j tier 1 custo
Slide 37: Infrastructure & Environment
Infrastructure & Environment For personal use only X Good performance by Evans & Peck • Enhancing I&E capability in front end and feasibility evaluation stage of major resource projects X EcoNomics E N i capability bilit assisting i ti th the award of new projects across the world X “Pit tto P Port”
Slide 38: Infrastructure & Environment Projects
Infrastructure & Environment Projects For personal use only IVANHOE Oyu Tolgoi Copper Mine Infrastructure AGIP Erskine West Rail Project MA’ADEN Infrastructure ORIGIN ENERGY Environmental Impact Services HANCOCK COAL Bankable Feasibility Study ELECTRONORTE OAKAJEE PORT AND RAIL Belo Monte Environmen
Slide 39: Infrastructure & Environment Projects & Awards
Infrastructure & Environment Projects & Awards For personal use only IVANHOE Oyu Tolgoi Copper Mine Infrastructure AGIP GASCO Erskine West Rail Project Sulphur Handling Station PNG ENERGY MA’ADEN Environmental Infrastructure Services KUWAIT OIL COMPANY ORIGIN ENERGY KOC Hospital Environmental Impact
Slide 40: Infrastructure & Environment Outlook
Infrastructure & Environment For personal use only OUTLOOK ● Continued development across key sectors and regions particularly pit-to- port capability throughout Australia, Africa and Latin America ● Increased demand for remediation and decommissioning of spent facilities ● Acquisition of KV3 in Sou
Slide 41: Group Outlook
Group Outlook For personal use only “Following a challenging first half that was impacted by a strong Australian dollar and tight margins margins, we expect the markets for our services to improve through the second half of the financial year. Based on stable currency markets and market conditions r
Slide 42: For personal use only
For personal use only
Slide 43: Appendices
Appendices For personal use only X FX Translation Impact
Slide 44: FX Translation Impact
FX Translation Impact For personal use only HY11 Revenue1 % by Region Movement in Major Currencies 130.0 USLAC 19% AME 19% 125.0 120.0 115.0 110.0 E&A 16% 105.0 ANZ 25% 100.0 95.0 Apr-10 Aug-09 Aug-10 Jun-09 Feb-10 Jun-10 Dec-09 Dec-10 Oct-09 Oct-10 Canada 21% USD GBP CAD X FX translation impact ~$1