H lf Y Half Year Result 2011 R lt 2011 John Grill 1
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 markets k t US power sector • US downstream hydrocarbons US d t h d b • 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 p g $124.7m $ down 15.5% � Earnings per share 52.4 c/s down 7.7% � Dividend � Dividend 36 0 c/s 36.0 c/s fully franked 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 million hours LWC free on Saudi Polymer NCP project, Saudi Arabia 75 illi h LWC f S di P l NCP j t S di A bi ● 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 Design, FEED and services to boost D i FEED d i t b t production from the super-giant Rumaila Oil Field, Iraq � World’s second largest producing oil field, contributing approximately 10% of 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 � Scope: Detailed engineering and D t il d i i d 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 • Christina Lake SAGD Facility - Est. Rev.-CAD$20-25m C S G C $ • 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 ExxonMobil – Canada M bil C d • 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 • Program Management Services (JV with Ausenco) P M t S i (JV ith A )
Significant Improve Awards & Renewals MEG ENERGY Master Services Agreement SHELL SUNCOR National Services Agreement Supplier of Choice Agreement Multi Regional Agreements SASOL SASOL Anglo American IMPERIAL OIL SHELL USA Integrated Procurement Services Rio Tinto Engineering - Nanticoke Pipeline & terminals services Dupont KPO Engineering Services SARAWAK SHELL Master Engineering Services BP CHEMICALS Engineering Services PETRONAS Engineering Services UCLA TALISMAN ENERGY Operations & Maintenance Offshore Engineering USCF Parnassus Central Utilities O&M DUKE ENERGY DUKE ENERGY Master Service Consulting TOTAL BRUNEI Engineering Services TOTAL NIGERIA Engineering Services E i i S i PACIFIC NATIONAL PACIFIC NATIONAL Engineering & Procurement ORYX ANGLO COAL AUSTRALIA Technical Services 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 Financial results i l lt David Housego 14
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 margin EBIT 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 Net profit margin 5.4% 5 4% 4 4% 4.4% (1 0%) (1.0%) (1 9%) (1.9%) Normalized EPS (cps) 1 62.8 56.6 (9.9%) (13.1%) Cash flow from operating activities g 147.5 124.7 (15.5%) ( ) (5.6%) ( ) 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 Revenue 1 $m EBIT Margin % 6,219.4 4 967 1 4,967.1 4,882.4 10.7 3,525.4 9.7 2,916.4 9.1 8.6 3,256.1 3 256 1 8 1 8.1 2,548.1 2,354.1 6.9 1,455.8 2006 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Net profit $m 390.5 � St � Strong revenue growth th 343.9 343 9 291.1 � Margin impacted by United States operations and FX ($14.1m) 224.8 � Effective tax rate down 0.8% to 24.4% 197.5 139.1 due to change in earnings mix 152.7 138.0 128.6 94.5 61.8 2006 2007 2008 2009 2010 2011 1 Aggregated revenue
Change In Net Profit HY11 vs. HY10 (8.4) 10 5 10.5 4.4 (3.0) (1.7) (14.1) 1.0 0.5 1 4 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
Hydrocarbons Revenue 1 $m HY11 Revenue 1 % by Region 4,740.1 USLAC 3,604.8 , 18% 18% 3 425 4 3,425.4 AME 21% AME 21% 2,579.1 2,373.7 1,950.3 1,869.1 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 Margin 8.9% 9.3% 10.8% 11.2% 11.0% 9.5% 26% � Canada growth in half � Canada growth in half EBIT by Region HY11 vs 2H10 2 $m � Europe and Africa; solid growth (2.1) 15.7 (9.4) 194.4 off low base in 2010. Project 181.2 186.2 4.4 (1.4) (2.2) restarts and early work assisting restarts and early work assisting � United States operations downstream impact HY10 2H10 AME ANZ Canada E&A USLAC FX HY11 Impact 1 Aggregated revenue 2 Regions in constant currency
Power HY11 Revenue 1 % by Region 1 $m Revenue 546.3 AME 9% 509.4 465.9 437.4 367.8 303.3 ANZ 21% 289.3 247.3 USLAC 45% 217 7 217.7 188.1 173.2 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% 7.7% 5.7% EBIT by Region HY11 vs 2H10 2 $m 2.1 (7.4) � 4 out of 5 markets up 0.4 2.0 20.5 1.5 18.8 (1.8) � United States operations 17.3 continue to be challenging continue to be challenging HY10 2H10 AME ANZ Canada E&A USLAC FX Impact HY11 1 Aggregated revenue 2 Regions in constant currency
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