H lf Y Half Year Result 2011 R lt 2011 John Grill 1 Overview - - PowerPoint PPT Presentation

H lf Y R lt 2011

1

Half Year Result 2011

John Grill

Overview

Improved conditions in second quarter Improved conditions in a number of

key markets

• Upstream hydrocarbons strong

p y g

• Canadian oil sands improving

Continued success in long term

g contracts and global relationships

Ongoing demand for EcoNomics

services as projects restart services as projects restart

Numerous “Pit to Port” feasibility

studies secured

Developing world providing most

project opportunities Exxon Mobil Arkutun-Dagi, Russia

Challenges

Challenging conditions in some

k t markets

• US power sector

US d t h d b

• US downstream hydrocarbons

sector

Continued negative impact of Continued negative impact of

Australian dollar

Queensland, Middle East and

North Africa operations interrupted

TVA Hydro power, USA

Financial Overview

Aggregate revenue

$2,916.4m up 14.5%

Net profit after tax

$128.6m down 6.8%

Operating cash flow

$124.7m down 15.5% p g $

Earnings per share 52.4 c/s

down 7.7%

Dividend

36 0 c/s fully franked

Dividend

36.0 c/s fully franked

Negative FX translation impact of $14.1m Strong financial capacity

People

32,900 personnel 41 countries

Safety Performance

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 illi h LWC f S di P l NCP j t S di A bi

• 75 million hours LWC free on Saudi Polymer NCP project, Saudi Arabia
• 20 million hours LWC free on Singapore Parallel Train, Singapore
• 4 million hours LWC free – Tengizchevroil TCO Projects, Kazakhstan
• 3 million hours LWC free – ExxonMobil MIPS contract, Nigeria
• Six years LWC free at OneSteel, Australia
• Crisis response programs - Queensland, Egypt, Bahrain, Libya, Christchurch

Crisis response programs Queensland, Egypt, Bahrain, Libya, Christchurch

Material Award – BP Iraq

Customer(s): BP Iraq, Petrochina

(CNPC), Iraq State Oil Marketing (CNPC), Iraq State Oil Marketing Organisation (SOMO)

Scope of Services: Conceptual

D i FEED d i t b t Design, FEED and services to boost production from the super-giant Rumaila Oil Field, Iraq

World’s second largest producing oil

field, contributing approximately 10%

• f Middle East production, 7% of

OPEC production and 3% of global production

Support from London & UAE for Iraq Support from London & UAE for Iraq

team

Initial revenue > USD100m

Material Award – QGC

Customer: QGC Project: Queensland Curtis Island

LNG facility

S

D t il d i i d

Scope: Detailed engineering and

procurement services for the upstream gas field and related infrastructure

Potential Revenue: > $580m Execution Centre: Brisbane

Material Award – ExxonMobil Hebron

Customer: ExxonMobil Canada Scope of Services: FEED with option

for engineering, procurement and construction services (ExxonMobil’s discretion)

Execution centres – Houston, USA

and St John’s in Canada and St John s in Canada

Estimated revenue for full FEED/EPC

services US$285m over 5 years

Reinforcement of our premier position

in upstream offshore and arctic markets markets

Additional Material Awards

BP – Global Agreement

Onshore Facilities Developments

• Onshore Facilities Developments
• Engineering & Project Management Services

ExxonMobil Sakhalin 1 Artukun Dagi Platform – Russia

• Increased Scope

$

• Est. Rev. – US$500m

MEG Energy – Canada

C S G C $

• Christina Lake SAGD Facility - Est. Rev.-CAD$20-25m
• Master Services Agreement

Husky Oil – Canada

• Sunrise Energy Project – Est. Rev.- CAD$250m
• Engineering Procurement Fabrication Construction

Additional Material Awards

Gazprom - Russia

• Shtockman Phases 2 & 3
• Front End Engineering Services (FEED)

ConocoPhillips – North Sea ConocoPhillips North Sea

• Jasmine Area Development
• Detailed Design and Procurement Services

E M bil C d ExxonMobil – Canada

• Hebron Project - Est. Rev. - A$285m
• Front End Engineering With Subsequent EPC Option

Mobil Producing Nigeria – Nigeria

• Satellites Phase 2 Contract Extension
• Offshore Facilities Upgrade

Hancock Coal - Australia

• Alpha Coal Project – Est. Rev A$285m

P M t S i (JV ith A )

• Program Management Services (JV with Ausenco)

Significant Improve Awards & Renewals

SHELL National Services Agreement MEG ENERGY Master Services Agreement SUNCOR Supplier of Choice Agreement SASOL Multi Regional Agreements IMPERIAL OIL Engineering - Nanticoke SHELL USA Pipeline & terminals services KPO Engineering Services SASOL Integrated Procurement Services Anglo American Rio Tinto Dupont PETRONAS BP CHEMICALS Engineering Services SARAWAK SHELL Master Engineering Services UCLA Operations & Maintenance Engineering Services TALISMAN ENERGY Offshore Engineering USCF Parnassus Central Utilities O&M DUKE ENERGY PACIFIC NATIONAL TOTAL BRUNEI Engineering Services TOTAL NIGERIA E i i S i DUKE ENERGY Master Service Consulting PACIFIC NATIONAL Engineering & Procurement Engineering Services ORYX Technical Services ANGLO COAL AUSTRALIA Six Coal mines

229 Improve contracts – 16 new contracts, 6 renewals

Kv3 Overview

Kwezi V3 Engineers - Leading multi-

disciplinary infrastructure engineering disciplinary infrastructure engineering consultancy based in South Africa

Investment – A$45.4m Majority of clients are government

bodies, including local and provincial governments and state-owned governments and state owned enterprises

Kv3 – 845 personnel Total across Africa - 1900 personnel

Fi i l lt

14

Financial results

David Housego

Financial Profile

$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 i 8 2% 6 9% (1 3%) (2 1%) EBIT margin 8.2% 6.9% (1.3%) (2.1%) Net profit 138.0 128.6 (6.8%) (16.0%) Net profit margin 5 4% 4 4% (1 0%) (1 9%) Net profit margin 5.4% 4.4% (1.0%) (1.9%) Normalized EPS (cps) 1 62.8 56.6 (9.9%) (13.1%) Cash flow from operating activities 147.5 124.7 (15.5%) (5.6%) g ( ) ( ) USD:AUD rate 0.869 0.943 (8.5%) (5.6%)

1 Before amortization of intangibles including tax effect of amortization expense

HY11 - refers to the six months ended 31 Dec 2010 HY10 - refers to the six months ended 31 Dec 2009 2H10 - refers to the six months ended 30 Jun 2010

Financial Profile

EBIT Margin %

6,219.4 4 967 1 Revenue1 $m

8 1 9.1 10.7 9.7 8.6

3 256 1 2,916.4 3,525.4 4,882.4 4,967.1

8.1 6.9

1,455.8 2,354.1 3,256.1 2,548.1

St

th

2006 2007 2008 2009 2010 2011 343 9 390.5 Net profit $m

2007 2008 2009 2010 2011

Strong revenue growth Margin impacted by United States

• perations and FX ($14.1m)

224.8 343.9 291.1

Effective tax rate down 0.8% to 24.4%

due to change in earnings mix

61.8 94.5 152.7 197.5 138.0 128.6 139.1 2006 2007 2008 2009 2010 2011

1 Aggregated revenue

Change In Net Profit HY11 vs. HY10

10 5 (8.4) 1 4 0.5 1.0 10.5 (1.7) 4.4 (3.0) (14.1) 1.4 m 138.0 128 6 $m 128.6

HY10 Hydrocarbons Power Minerals & Metals Infrastructure & Environment Corporate

• verhead

Net borrowing costs Income Tax Minority Interest FX Impact HY11

Hydrocarbons

3,604.8 4,740.1 3 425 4

Revenue 1 $m

AME 21% USLAC 18%

HY11 Revenue1 % by Region

1,760.3 2,373.7 1,869.1 1,768.9 2,579.1 , 3,425.4 1,950.3 AME 21% 18% 817.3 1,026.0

2006 2007 2008 2009 2010 2011

ANZ 17% E&A 18%

Canada growth in half

Revenue % of Group 71.9% 73.2% 73.8% 76.2% 69.0% 66.9% EBIT Margin 8.9% 9.3% 10.8% 11.2% 11.0% 9.5%

EBIT by Region HY11 vs 2H10

2 $m

Canada 26%

Canada growth in half Europe and Africa; solid growth

• ff low base in 2010. Project

restarts and early work assisting

194.4 181.2 (1.4) (2.2) 4.4 15.7 (2.1) (9.4) 186.2

restarts and early work assisting

United States operations

downstream impact

1 Aggregated revenue 2 Regions in constant currency

HY10 2H10 AME ANZ Canada E&A USLAC FX Impact HY11

Power

546.3 509.4

Revenue

1 $m

AME 9%

HY11 Revenue1 % by Region 217 7 289.3 303.3 367.8 437.4 465.9 247.3

ANZ 21% USLAC 45%

173.2 188.1 217.7

Canada 7%

Revenue % of Group 15.0% 12.4% 9.5% 8.8% 10.3% 10.4% EBIT Margin 13.0% 13.2% 13.0% 12.2% 7.7% 5.7%

2006 2007 2008 2009 2010 2011

E&A 18%

EBIT by Region HY11 vs 2H10 2 $m

4 out of 5 markets up United States operations

continue to be challenging

18.8 20.5 1.5 2.0 0.4 2.1 (7.4) (1.8) 17.3

continue to be challenging

1 Aggregated revenue 2 Regions in constant currency

HY10 2H10 AME ANZ Canada E&A USLAC FX Impact HY11

Minerals & Metals

583.0 562.5

Revenue 1 $m

USLAC 11%

HY11 Revenue1 % by Region 371.8 318.1 200.8 291.4 469.3 239.8

AME 26% Canada 10% E&A 3% 112.9 129.3 214.1 200.8

2006 2007 2008 2009 2010 2011 Revenue % of Group 8.2% 8.3% 9.6% 9.4% 11.3% 10.9% EBIT Margin 13.8% 14.7% 17.0% 14.2% 13.7% 8.7% 2006 2007 2008 2009 2010 2011

EBIT by Region HY11 vs 2H10

2 $m

ANZ 50%

Number of major projects

winding down

2nd half 2010 included project

27.7 49.3 (12.2) (11.3) 4.4 (0.4) (1.1) (0.9)

2

half 2010 included project incentives

High degree of workshare

F ibilit bi t

27.7 ( ) ( ) (0.9) 27.8

Feasibility bias on current

workload

1 Aggregated revenue 2 Regions in constant currency

HY10 2H10 AME ANZ Canada E&A USLAC FX Impact HY11

Infrastructure & Environment

344.7

342.4 350.0 469.8

Revenue 1 $m

AME 16% USLAC 9%

HY11 Revenue1 % by Region 221.3 191.9

121 6 214.9 AME 16% Canada E&A 10%

31.5 112.4 162.0

121.6

2006 2007 2008 2009 2010 2011

ANZ 49% Canada 16%

Revenue % of Group 4.9% 6.1% 7.0% 5.6% 9.5% 11.8% EBIT Margin 8.0% 9.5% 12.1% 8.6% 10.2% 8.4% 2006 2007 2008 2009 2010 2011

1 5

EBIT by Region HY11 vs 2H10 2 $m

ANZ largest market, Evans &

Peck; good start O ll t iti ith

19.0 28.7 0.4 2.3 1.5 (3.2) (0.2) (0.6) 28.9

Overall segment positive with

a small growth over 2H10

HY10 2H10 AME ANZ Canada E&A USLAC FX HY11

1 Aggregated revenue 2 Regions in constant currency

HY10 2H10 AME ANZ Canada E&A USLAC FX Impact HY11

Cash Flow

$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) 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 Net cash outflow from investing activities (104 0) (82 4) (51 0) (23 6) g (104.0) (82.4) (51.0) (23.6) Net cash (outflow)/inflow from financing activities 10.2 (110.5) (111.1) (48.2) Key metrics: DSO (days) 99.4 87.0 75.3 72.9 Cash from operations / net profit (%) 73.1% 118.7% 106.9% 97.0% $20.8m paid for increased share of China J.V (80%) and South African J.V. PP&E spend $15.0m in HY11, $28.4m in HY10 Dividend declared: 36 c/s fully franked

• de d dec a ed 36 c/s u y

a ed

Liquidity & Gearing

Key Metrics Jun-09 Jun-10 Dec-10

G i ti 25 5% 25 8% 23 8%

Liquidity Summary $m Jun-09 Jun-10 Dec-10

L & OD f iliti 1 376 1 1 286 1 1 129 2 Gearing ratio 25.5% 25.8% 23.8% Facility utilization 54.2% 60.8% 62.5% Average cost of debt 5.5% 5.2% 5.0% Loan & OD facilities 1,376.1 1,286.1 1,129.2 Less: facilities utilized (745.2) (781.5) (705.5) Available facilities 630.9 504.6 423.7 Average maturity (years) 4.1 3.8 3.5 Interest cover 14.1x 13.3x 12.1x Plus: cash 178.3 140.5 170.0 Total liquidity 809.2 645.1 593.7 Net Debt/EBITDA * 0.8x 1.2x 1.0x Bonding facility utilization 52.9% 50.1% 56.0% Bonding facilities 452.5 669.1 633.5

Refinanced Syndicated Facility tranche of US$60m to Feb 2012 Loan and overdraft facilities of $105.5m maturing in calendar year 2011 ($54.3m

• verdraft)
• verdraft)

Gearing of 23.8%; retain significant financial capacity Unsecured notes payable offered in United States private debt market. USD207m

t i i fi t t ith fi d l Fi i l l d maturing in five to ten years with a fixed annual coupon. Financial close and funding expected March 2011

S t P f

24

Sector Performance & Outlook - John Grill

Hydrocarbons

Strong performance in

unconventional gas unconventional gas

Maintaining premier position in

upstream offshore market

Continued recovery in oil sands Onshore oil market strong through

Middle East

Leadership in deepwater and

subsea markets subsea markets

Increasing LNG presence in global

market

Kashagan Full Field Development, Kazakhstan Kazakhstan

Hydrocarbons Major Projects

SHELL Kashagan Full Field Development SHELL Alliance Contract SHELL SAMREF Clean Fuels EXXONMOBIL Arkutun-Dagi Platform Albian Sands Expansion 1 TOTAL Joslyn North Mine EXXONMOBIL Singapore Parallel Train WOODSIDE Pluto EPCM KEY PROJECT KEY PROJECT

Hydrocarbons Projects & Key Awards

SHELL Kashagan Full Field Development SHELL Alliance Contract SHELL SAMREF Clean Fuels EXXONMOBIL Artukun Dagi Platform HUSKY ENERGY Sunrise Energy CONOCO PHILLIPS Jasmine Offshore Albian Sands Expansion 1 TOTAL Joslyn North Mine Jasmine Offshore EXXONMOBIL Hebron Development BP Rumaila FEED GAZPROM Shtockman Phases 2&3 EXXONMOBIL Singapore Parallel Train CHEVRON Gendalo Gehem Subsea BP Global Onshore Developments CHEVRON Waffra Enhanced Oil Recovery WOODSIDE Pluto EPCM QGC Queensland LNG Upstream MOBIL PRODUCING NIGERIA Satellites project EXXONMOBIL Port Stanvac Demolition KEY PROJECT NEW PROJECT KEY PROJECT

Hydrocarbons

OUTLOOK

• Unconventional gas sector
• Unconventional gas sector
• pportunities are being realized in

Australia, Oman and Canada

• Ongoing improvement in the Canadian
• il sands market
• Strength in the upstream market has
• Strength in the upstream market has

resulted in a number of significant awards in Canada, Southeast Asia, Middle East and the Caspian Middle East and the Caspian

• US downstream operations to remain

challenging for some time

• We expect improved earnings in the

Hydrocarbons sector in the second half

• f 2011

ExxonMobil Longford Facility, Australia

Power

Strong presence in nuclear market

• Feasibility studies and program

management in the developing world

• Operations and maintenance support in

developed world developed world Air quality control market continues

to show positive signs

Networks market showing strong

growth in a number of regions

Presence in the operations and

maintenance market expanding Power Operations and Maintenance, USA

Power - Projects

QATAR PETROLEUM Halul Power Supply NUCLEAR POWER PROGRAM Egypt TENNESSEE VALLEY AUTHORITY Plant Support contract NUCLEAR POWER PROGRAM Armenia Halul Power Supply gyp NUCLEAR POWER PROGRAM Jordan NEK Belene Nuclear Power LOY YANG POWER VERVE ENERGY Power Services LOY YANG POWER Mine and Power Station Maintenance KEY PROJECT KEY PROJECT

Power - Projects & Key Awards

QATAR PETROLEUM Halul Power Supply NUCLEAR POWER PROGRAM Egypt BRUCE POWER TENNESSEE VALLEY AUTHORITY Plant Support contract NUCLEAR POWER PROGRAM Armenia Halul Power Supply gyp NUCLEAR POWER PROGRAM Jordan TENNESSEE VALLEY AUTHORITY Fossil and Hydro Services INTER RAO UES Nuclear Bankable feasibility study NEK Belene Nuclear Power New water demineralising plant ENMAX Engineering Services TUAS POWER Tenbusu Cogeneration SINGAPORE POWER East West Cable Tunnel SP POWERGRD Gas Transmission Pipelines VERVE ENERGY UNIVERSITY OF CALIFORNIA LA LOY YANG POWER Mine and Power Station Maintenance Power Services UNIVERSITY OF CALIFORNIA LA Parnassus Central Utilities PETROBRAS New Diesel Hydrotreating Plant ALUPAR INVESTIMENTO Ferreira Gomes Hydropower plant KEY PROJECT NEW PROJECT KEY PROJECT

Power Outlook

OUTLOOK Contin ed foc s on s pport for

• Continued focus on support for

projects across the developing world

• Attractive market for nuclear services

across almost all geographies

• Improve services in developed world

markets remains a priority markets remains a priority

• Focus on air quality projects should

see an improved operational performance in the United States

• We expect improved earnings in the

Power sector in the second half of Bruce Power, Ontario Canada Power sector in the second half of 2011 ,

Minerals & Metals

Expanding presence with Tier 1

customers worldwide

Significant number of studies

underway as the new phase of industry investment commences industry investment commences

“Pit to Port” solutions being well

received by the market for stranded iron ore and coal

Revival of iron ore and base metals

markets markets Ma'aden Beneficiation Plant, Saudi Arabia

Minerals & Metals Projects

US STEEL Continuous Annealing Line MA’ADEN PHOSPHATE Phosphate development MA’ADEN ALUMINA Alumina development Alumina development ALMATIS Phase III project FORTESCUE METALS GROUP SASOL Shondoni project 2nd Port Outloader Circuit VALE S11D Iron Ore KEY PROJECT GINDALBIE METALS Karrara iron ore project Shondoni project KEY PROJECT

Minerals & Metals Projects & Studies

US STEEL Continuous Annealing Line MA’ADEN PHOSPHATE Phosphate development MA’ADEN ALUMINA Alumina development KCM BULGARIA Lead Smelter project Alumina development Lead Smelter project ALMATIS Phase III project EVONIK QDCC Carbon Black plant ORICA Prill Plant FORTESCUE METALS GROUP SASOL Shondoni project 2nd Port Outloader Circuit WICET Coal Terminal HANCOCK COAL Alpha Coal VALE S11D Iron Ore Shondoni project GINDALBIE METALS Karrara iron ore project KEY PROJECT NEW STUDY ANGLO AMERICAN Chagres Smelter BHPB URANIUM Process Plant study ALCOA REFINERY Residue projects KEY PROJECT Residue projects CSPB AN Plant expansion NEW PROJECT

Minerals & Metals Outlook

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 with major tier 1 customers is g j expected to continue

• Strong focus on developing-world projects,

particularly in Latin America and Africa particularly in Latin America and Africa

• The opportunities for ‘pit to port’ projects are

particularly strong W t i d i i th Mi l

• We expect improved earnings in the Mineral

& Metals sector in the second half of 2011 EMAL, Abu Dhabi

Infrastructure & Environment

Good performance by Evans &

Peck

• Enhancing I&E capability in front end and

feasibility evaluation stage of major resource projects E

N i bilit i ti th

EcoNomics capability assisting the

award of new projects across the world “Pit t P t” t di idi

“Pit to Port” studies providing

• ptimal positioning for the business

Remediation services in Canada

and Australia showing growth FMG Pilbara Iron Ore, Australia

Infrastructure & Environment Projects

IVANHOE Oyu Tolgoi Copper Mine Infrastructure AGIP Erskine West Rail Project MA’ADEN Infrastructure ORIGIN ENERGY Environmental Impact Services ELECTRONORTE Belo Monte Environmental Services KEY PROJECT HANCOCK COAL Bankable Feasibility Study OAKAJEE PORT AND RAIL Program Management KEY PROJECT

Infrastructure & Environment Projects & Awards

IVANHOE Oyu Tolgoi Copper Mine Infrastructure AGIP Erskine West Rail Project GASCO Sulphur Handling Station PNG ENERGY MA’ADEN Infrastructure ORIGIN ENERGY Environmental Impact Services KUWAIT OIL COMPANY KOC Hospital PNG ENERGY Environmental Services EXXONMOBIL West Qurna 2 Environmental ASHGHAL Waste Water Treatment Plants FMG Port Hedland 155mt Feasibility Study WOODSIDE Browse Geotechnical OAKAJEE PORT AND RAIL Program Management ELECTRONORTE Belo Monte Environmental Services FMG Anketell Port Feasibility Study KEY PROJECT HANCOCK COAL Bankable Feasibility Study NEW STUDY Anketell Port Feasibility Study KEY PROJECT NEW PROJECT

Infrastructure & Environment

OUTLOOK

• Continued development across key
• Continued development across key

sectors and regions particularly pit-to- port capability throughout Australia, Africa and Latin America Africa and Latin America

• Increased demand for remediation and

decommissioning of spent facilities

• Acquisition of KV3 in South Africa,

provides strong support for further project success across Africa p j

• The prospects for our Infrastructure &

Environment services remain positive for the second half of 2011 and we expect the second half of 2011 and we expect earnings growth FMG “Pit to Port”, Australia

Group Outlook

“Following a challenging first half that was impacted by a strong Australian dollar and tight margins we expect the markets for our services to improve through the and tight 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 remaining positive, we expect to report increased earnings for the full year year. “Recent flooding in Queensland will have some effect on the results of our Australian operations. The current unrest and resultant instability in parts of the p y p Middle East and North Africa is of concern, with the impact difficult to estimate at this stage. “Based on our competitive position, our diversified business operations and our strong financial capability, we are confident that WorleyParsons’ medium and long- term prospects remain positive. “The company continues to evaluate opportunities for new business growth that add to our existing capabilities and provide value for shareholders.”

Appendices

FX Translation Impact

FX Translation Impact

125.0 130.0 Movement in Major Currencies

AME 19% USLAC 19%

HY11 Revenue1 % by Region

110.0 115.0 120.0 95.0 100.0 105.0

ANZ 25% E&A 16%

FX translation impact ~$14.1m net profit HY11 vs. HY10

Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10

USD GBP CAD

Canada 21%

Currency Annualized AUD $m NPAT translation impact of 1c ∆ AUD:USD 1 0 Currency HY10 HY11 FY09 ∆ AUD:USD 86 9 94 3 (8 5%) AUD:USD 1.0 AUD:GBP 0.5 AUD: CAD 1.0 AUD:USD 86.9 94.3 (8.5%) AUD:GBP 53.0 60.2 (13.6%) AUD: CAD 93.7 96.8 (3.3%)

1 Aggregated revenue