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13 January 2010
ASX Release
WORLEYPARSONS LIMITED
(ASX: WOR)
WorleyParsons provides earnings outlook
WorleyParsons advised the market on 27 October 2009:

of the continuation of uncertain conditions experienced in a number of markets;

that the trading result for the first quarter of the 2010 financial year would be below expectations with this trend expected to continue in the second quarter;

of a more significant weighting of earnings to the second half of the financial year with the first half result predicted to be well below that of the corresponding period last year;

of the expected net profit impact of the continued appreciation of the Australian dollar on the translation of foreign currency earnings in the order of $35 to $40 million for the full year (based on currency rates at 27 October 2009); and

that the above currency impact would be additional to the modest reduction in earnings predicted in the companys August 2009 outlook statement.
Using this guidance, the range of expected net profit after tax for the 2010 financial year would have been in the order of $320 million to $335 million.
The first four points listed above still apply. However, since the October update, several of the regions have performed above our earlier expectations, while some have underperformed them. Overall, this has lowered our expectations, the two major factors being:
1.
Power operations, particularly in the US, have been adversely affected by decreased demand and increased legislative uncertainty concerning the treatment of carbon. Note the companys restructure of its US power operations to concentrate on the renewable and nuclear markets is well advanced.
2.
The market for our services in the US domestic refining and petrochemicals industries has weakened significantly.
The recently announced acquisitions of Australian infrastructure services company Evans & Peck and Brazilian services group CNEC Engenharia, whilst both strategically important, will not contribute significantly to the companys second half result. The contribution from both acquisitions was anticipated in the previous outlook provided.
2
WorleyParsons advises that its current expectations of net profit after tax for the 2010 financial year, including the use of the current exchange rates for the remainder of the financial year, is a range of $280 million to $320 million.
The company is encouraged by increasing activity in a number of regions and customer sector groups supporting our view of a more significant weighting of earnings to the second half of the financial year. The company is confident that its medium-term and long-term prospects remain very positive based on its competitive position and its strong financial capacity.
For further information please contact:
David Housego Chief Financial Officer Ph: +61 2 8923 6866 www.worleyparsons.com
Geoff Fowlstone Fowlstone Communications Ph: +61 2 9955 9899 Mob: +61 413 746 949 [email protected]