Worley Limited · ASX:WOR
Worley — WorleyParsons — H1 2010 Earnings Presentation
36 slides from Worley's earnings presentation, Feb 18, 2010
Slide 1: Half Year Results 2010
For personal use only 1 Half Year Results 2010
Slide 2: Overview
Overview For personal use only A reasonable result in challenging market Variable conditions in a number of markets Power operations (particularly US) US Hydrocarbons (Downstream) Canada region and Minerals & Metals result materially down on prior period Expected this shortfall Encoura
Slide 3: Financial Overview
Financial Overview For personal use only Aggregate revenue $2,548.1m down 21.7% Net profit after tax $138.0m down 30.1% Operating cash flow $147.5m down 37.1% Earnings per share 56.8c/s down 30.4% Dividend 35.5c/s fully franked Negative FX translation impact of $10.9m Strong financial
Slide 4: Snapshot
Snapshot For personal use only Strategic push into LNG Increased number of Improve relationships Increased exposure on new LNG trains 100% renewal on all expiring major long-term contracts 4 material contract renewals Breadth and scope of long-term contracts Sustainability solutions re
Slide 5: Safety Performance
Safety Performance For personal use only CATEGORY FY09 1H10 Total Recordable Case Frequency 0.11 0.15 Rate* Lost Workday Case Frequency 0.02 0.02 Rate* (* WorleyParsons applies the US OSHA reporting requirements) MAJOR SAFETY ACHIEVEMENTS IN THE PERIOD CURRENT CHALLENGES 40 Million hours LTI free
Slide 6: Operations
Operations For personal use only 29,100 personnel* 40 countries *Which includes 700 personnel with CNEC acquisition
Slide 7: Impact of Middle East Projects
Impact of Middle East Projects For personal use only CANADA GaSCO CO2 Recovery & Injection /Nitrogen Gen Plant PMC GASCO Project Management Contract Nexen Petroleum EPCM Services Shah and Habshan Railway FEED UNITED KINGDOM Chemaweyaat/ Tacaamol UNITED STATES KNPC Acid Gas Removal Plant ChevronPhill
Slide 8: LNG Projects
LNG Projects For personal use only Major strategic push to support customers in their LNG developments Currently we have Improve contracts covering 23 LNG trains with 8 different clients We are executing, in our own capacity or in joint venture, projects at all stages for 17 new greenfield LNG
Slide 9: Improve Contract Renewals
Improve Contract Renewals For personal use only SYNCRUDE • 5 year renewal 19 year relationship IMPERIAL OIL • 5 year renewal 19 year relationship TENNESSEE VALLEY AUTHORITY • 5 year renewal 19 year relationship WOODSIDE PETROLEUM • 4 year renewal 15 year relationship
Slide 10: Long Term Contracts
Long Term Contracts For personal use only EUROPE / AFRICA CANADA 12 Contracts 52 Contracts Esso Exploration Angola (New) Syncrude CoSyn (Renewal) SASOL Shared Services (New) Imperial Oil (Renewal) Sembcorp Ultilities (New) BP Canada (Renewal) Sellafield Multi Discipline Design House Services (New) R
Slide 11: Sustainability Solutions
Sustainability Solutions For personal use only
Slide 12: CNEC Overview
CNEC Overview For personal use only CNEC was part of the engineering & construction division of the Brazilian conglomerate Camargo Corrêa Around 700 people across Brazil, with offices in Argentina and Peru Customer base includes Petrobras, Vale and Electrobras Established leader in hydropowe
Slide 13: Evans & Peck overview
Evans & Peck overview For personal use only Evans & Peck provides high level business advisory services Around 350 employees across Australia, with offices also in Hong Kong and Shanghai Established leader offering strategic, commercial and contractual advice to governments and industry Wate
Slide 14: Financial Results
Financial Results For personal use only David Housego 14 Half Year Results 2010
Slide 15: Financial Profile
Financial Profile For personal use only $m HY09 HY10 vs. HY09 vs. 2H09 Aggregated Revenue 3,256.1 2,548.1 (21.7%) (14.1%) EBIT 314.6 209.8 (33.3%) (27.8%) EBIT margin 9.7% 8.2% (1.5%) (1.6%) Net profit 197.5 138.0 (30.1%) (28.5%) Net profit margin 6.1% 5.4% (0.7%) (1.1%) Normalized EPS (cps) 1 87.8
Slide 16: Financial Profile
Financial Profile For personal use only Revenue 1 $m EBIT Margin % 6,219.4 10.6 4,882.4 9.7 9.0 8.2 3,525.4 8.1 3,256.1 2,459.1 2,548.1 2,354.1 1,455.8 1,134.9 2006 2007 2008 2009 HY10 2006 2007 2008 2009 2010 Net profit $m 390.5 343.9 Margin impacted by current market conditions 224.8 197.5 Eff
Slide 17: Change In Net Profit HY10 vs. HY09
Change In Net Profit HY10 vs. HY09 For personal use only 197.5 (70.7) 39.9 (10.9) 138.0 $m (9.7) (23.2) 15.4 1.0 (1.3) HY09 Hydrocarbons Power Minerals & Metals Infrastructure & Corporate Net Interest Income Tax FX Impact HY10 Environment overhead
Slide 18: Hydrocarbons
Hydrocarbons For personal use only HY10 Revenue1 % by Region Revenue 1 $m 4,740.1 USLAC 18% AME 20% 3,604.8 2,579.1 2,373.7 1,768.9 1,760.3 1,869.1 E&A 17% 1,026.0 817.3 ANZ 21% 2006 2007 2008 2009 2010 Canada 24% Revenue % of Group 71.9% 73.2% 73.8% 76.2% 73.4% EBIT Margin 8.9% 9.3% 10.8% 11.2% 10.
Slide 19: Power
Power For personal use only HY10 Revenue1 % by Region Revenue 1 $m AME 7% 546.3 465.9 437.4 ANZ 18% 367.8 289.3 247.3 USLAC 45% 217.7 173.2 188.1 Canada 6% 2006 2007 2008 2009 2010 E&A 24% Revenue % of Group 15.0% 12.4% 9.5% 8.8% 9.7% EBIT Margin 13.0% 13.2% 13.0% 12.2% 7.6% EBIT by Region HY10 vs 2
Slide 20: Minerals & Metals
Minerals & Metals For personal use only HY10 Revenue1 % by Region Revenue 1 $m 583.0 USLAC 12% AME 23% 469.3 E&A 2% 371.8 Canada 9% 291.4 239.8 200.8 214.1 112.9 129.3 2006 2007 2008 2009 2010 Revenue % of Group 8.2% 8.3% 9.6% 9.4% 9.4% EBIT Margin 13.8% 14.7% 17.0% 14.2% 11.6% ANZ 54% EBIT by Regio
Slide 21: Infrastructure & Environment
Infrastructure & Environment For personal use only HY10 Revenue1 % by Region Revenue 1 $m USLAC 4% 342.4 350.0 E&A 6% AME 21% 214.9 221.3 191.9 Canada 22% 162.0 121.6 112.4 31.5 2006 2007 2008 2009 2010 Revenue % of Group 4.9% 6.1% 7.0% 5.6% 7.5% ANZ 47% EBIT Margin 8.0% 9.5% 12.1% 8.6% 9.9% EBIT by
Slide 22: Cash Flow
Cash Flow For personal use only $m HY07 HY08 HY09 HY10 EBITDA 141.5 263.1 354.5 252.2 Interest and tax paid (34.7) (75.0) (102.9) (132.3) Working capital / other (33.2) (76.5) (17.1) 27.6 Net cash inflow from operating activities 73.6 111.6 234.5 147.5 Net cash outflow from investing activities (59.
Slide 23: Liquidity & Gearing
Liquidity & Gearing For personal use only Key Metrics Jun-08 Jun-09 Dec-09 Liquidity Summary $m Jun-08 Jun-09 Dec-09 Gearing ratio 31.4% 25.5% 24.5% Loan & OD facilities 1,094.0 1,376.1 1,260.9 Facility utilization 67.3% 54.2% 58.0% Less: facilities utilized (735.9) (745.2) (731.0) Average cost of d
Slide 24: Sector Review & Outlook
Sector Review & Outlook For personal use only John Grill 24 Half Year Results 2010
Slide 25: Hydrocarbons Industry Status
Hydrocarbons Industry Status For personal use only “For it’s part, ExxonMobil is committed to disciplined and long- term investments in technologies that hold the promise of meeting the energy challenge.” Rex Tillerson, Chairman and CEO, Exxon Mobil “Much of our 2010 spending continues to be on larg
Slide 26: Hydrocarbons
Hydrocarbons For personal use only Major current projects include: Customer Project Region Agip / Eni Agip Project Kazakhstan Devon Energy Jack Fish 2 Modules Canada ExxonMobil Artukun Dagi Russia ExxonMobil MIPS Contract Nigeria GASCO Integrated Gas United Arab Development Projects Emirates Shell
Slide 27: Hydrocarbons Outlook
Hydrocarbons Outlook For personal use only Major customers CAPEX budgets increasing Stabilized crude pricing Improving world economy LNG markets continue to expand Middle East remains strong, with Brazil, Russia, Iraq and Western Africa continuing to offer significant new opportunities C
Slide 28: Power
Power For personal use only Major current projects include: Customer Project Region Lilama Vung Ang1 Coal Station Vietnam Tuas Power Tenbusu Cogeneration Singapore Saudi Electric Qassim and PP10 Saudi Arabia Belene Nuclear Power Plant Bulgaria MENR Nuclear Power Programme Armenia OPG Biomass Conve
Slide 29: Power Outlook
Power Outlook For personal use only Power market remains challenging in US, Australia and Canada Carbon uncertainty has resulted in significant delays Reduction in power demand (US) Market improving in Europe, Asia and the Middle East Nuclear programs are continuing to gain pace throughout
Slide 30: Minerals & Metals
Minerals & Metals For personal use only Major current projects include: Customer Project Region BHP Billiton Cerro Matoso Furnace Colombia EMAL Aluminum Smelter Abu Dhabi Gindalbie Karara Iron Ore Australia Ma’aden Alumina Saudi Arabia Ma’aden Ma’aden Phosphate Saudi Arabia Orica Naning Detonator
Slide 31: Minerals & Metals Outlook
Minerals & Metals Outlook For personal use only Upward revisions in many of our customers capex budgets Outlook improving on the back of stronger commodity prices Constraints on sustaining capital (Improve) spend have eased considerably Focus on Tier 1 clients and those with secured funding
Slide 32: Infrastructure & Environment
Infrastructure & Environment For personal use only Major current projects include: Customer Project Region ConocoPhillips APLNG Environmental Impact Australia Study and Approvals Consultant Doha Port Committee New Doha Port Qatar EMAL Aluminium Smelter Abu Dhabi Ivanhoe Oyu Tolgoi Copper Mine Mong
Slide 33: Infrastructure & Environment Outlook
Infrastructure & Environment Outlook For personal use only Water market long term fundamentals remain strong Increased market interest in heavy haul, metro and high speed rail in Australia and China Coastal & Marine opportunities improving with significant opportunities emerging in Brazil, Aus
Slide 34: Group Outlook
Group Outlook For personal use only While WorleyParsons confirms that our current expectations of net profit after tax for the 2010 financial year remains in the range of $280 million to $320 million, we are encouraged by increasing activity in a number of regions and customer sector groups supporti
Slide 35: Half Year Results 2010
For personal use only 35 Half Year Results 2010
Slide 36: Appendix - FX Translation Impact
Appendix - FX Translation Impact Movement in Major Currencies For personal use only HY10 Revenue1 % by Region 120.0 115.0 USLAC 110.0 19% AME 19% 105.0 100.0 95.0 90.0 85.0 80.0 75.0 E&A 16% 70.0 65.0 ANZ 25% 60.0 Apr-09 Aug-08 Aug-09 Jun-08 Feb-09 Jun-09 Dec-08 Dec-09 Oct-08 Oct-09 Canada USD GBP C