Half Year Results 2010 1 Overview A reasonable result in - - PDF document

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Half Year Results 2010 1 Overview A reasonable result in - - PDF document

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Half Year Results 2010 1 Overview 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

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SLIDE 1

1

Half Year Results 2010

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SLIDE 2

Overview

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  Encouraging signs in both markets for second half

Middle East continues to perform strongly

Market entry into Brazil through acquisition of CNEC

Australian Infrastructure capability strengthened with acquisition of Evans & Peck

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SLIDE 3

Financial Overview

 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 capacity

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SLIDE 4

Snapshot

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 remain a focus

Good cost management and reduced capital expenditure in the period

Improved second half result anticipated

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SLIDE 5

Safety Performance

CATEGORY FY09 1H10 Total Recordable Case Frequency Rate*

0.11 0.15

Lost Workday Case Frequency Rate*

0.02 0.02

(* WorleyParsons applies the US OSHA reporting requirements)

MAJOR SAFETY ACHIEVEMENTS IN THE PERIOD

 40 Million hours LTI free on Shell’s AOSP project  35 Million hours LTI free on Ma’aden’s Phosphate project

 10 Million hours LTI free on ADGAS’s OAG 1 project  British Safety Council “Sword of Honour”  Safety Awards from Sunoco and One Steel

 Houston Business Roundtable Safety Excellence Award

 Nigeria DeltaAfrik HIV/AIDS Program launched CURRENT CHALLENGES

 Sustained industry growth which is translating into an

expanded skills demand

 An aging workforce  More construction activity and use of contractors with

no industry experience

 Projects are bigger, more complex and delivery times

shorter

 Young people are invincible!

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SLIDE 6

Operations

29,100 personnel* 40 countries

*Which includes 700 personnel with CNEC acquisition

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SLIDE 7

Impact of Middle East Projects

UNITED STATES NEW ZEALAND CANADA EUROPE

UNITED STATES

ChevronPhillips NCP Project SAMREF Clean Fuels, Kuwait Oil Company Projects RasTanura Refinery Expansion SABIC Methyl Methacrylate/Acrylonitrile Project Sipchem Ethylene Vinyl Acetate Project Shah Gas Development

AUSTRALIA / NEW ZEALAND

Halul Integrated Pipeline Project Qatar Aluminium Khazzan Makaren EWT Egyphos Phosphatic Fertilizer EMAL Aluminium Smelter Oman DUQM Project PDO Amal Steam Surface Facility Qatar Petroleum Power Study

CHINA

Ras Tanura Refinery Tank Farm SAMREF Clean Fuels AMAL Project CNOOC LNG

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 KNPC Acid Gas Removal Plant Gasco Integrated Gas Dev PMC Offshore Topside Facilities

ASIA

LNG Offshore Platforms and Facilities Qatar Petroleum Power Supply FEED Qatar Petroleum Halul Submarine Power Cable Al Khafji General Services Saudi Aramco Arabiyha Field Development Ma’aden Phosphate Ma’aden Alumina London Mining Wadi Sawawin Iron Ore Dubai Aluminium Sohar Aluminium

Non Hydrocarbons projects

MIDDLE EAST

(Regions executing work)

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SLIDE 8

LNG Projects

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

  • r in joint venture, projects at all

stages for 17 new greenfield LNG trains Woodside Pluto LNG – World’s First Pre-assembled LNG Plant

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SLIDE 9

Improve Contract Renewals

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

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SLIDE 10

Long Term Contracts

AFRICA UNITED STATES NEW ZEALAND AUSTRALIA RUSSIA CANADA SOUTH AMERICA MIDDLE EAST EUROPE ASIA

USA / LATIN AMERICA / CARRIBEAN 43 Contracts

US Steel (New) Cogentrix Cedar Bay (New) Chevron Global Terminals (New) Tennessee Valley Authority (Renewal)

AUST / NEW ZEALAND 46 Contracts

Alcoa Bunbury/Wagerup (New) CS Energy Asset Management (New) Woodside North West Shelf (Renewal) Horizon Power (New) Vale Coal (New)

ASIA / MIDDLE EAST 36 Contracts

Shell Malampaya (New) Brunei LNG (Renewal) Optimal Engineering and Construction Supervision Alliance (Renewal)

CANADA 52 Contracts

Syncrude CoSyn (Renewal) Imperial Oil (Renewal) BP Canada (Renewal)

EUROPE / AFRICA 12 Contracts

Esso Exploration Angola (New) SASOL Shared Services (New) Sembcorp Ultilities (New) Sellafield Multi Discipline Design House Services (New)

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SLIDE 11

Sustainability Solutions

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SLIDE 12

CNEC Overview

CNEC was part of the engineering & construction division of the Brazilian conglomerate Camargo Corrêa

 Around 700 people across Brazil, with

  • ffices in Argentina and Peru

Customer base includes Petrobras, Vale and Electrobras

Established leader in hydropower within Brazil, with world class capability

Aim to become a hub for Brazil’s hydrocarbons deepwater market

Completion expected February 2010

Acquisition Price BRL 170 million (approximately $A110.0 million)

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SLIDE 13

Evans & Peck overview

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

 Water and waste water  Rail services  Mining and Resources

Acquisition Price total consideration of $88.5 million (cash $37.5 million and issue of new shares $51.0 million)

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14

Half Year Results 2010 Financial Results David Housego

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Financial Profile

$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 62.8 (28.5%) (26.1%) Cash flow from operating activities 234.5 147.5 (37.1%) (52.7%) USD:AUD rate 0.788 0.869 (10.3%) (22.5%)

1 Before amortization of intangibles including tax effect of amortization expense

HY10 refers to the six months ended 31 Dec 2009; HY09 refers to the six months ended 31 Dec 2008; 2H09 refers to the six months ended 30 Jun 2009

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Financial Profile

1 Aggregated revenue

Margin impacted by current market conditions

Effective tax rate down 5.9% to 25.2% due to change in earnings mix

NPAT FX translation impact $10.9m

Dividend payout ratio maintained

8.1 9.0 10.6 9.7 8.2 2006 2007 2008 2009 HY10 EBIT Margin % 1,134.9 1,455.8 2,354.1 3,256.1 2,548.1 2,459.1 3,525.4 4,882.4 6,219.4 2006 2007 2008 2009 2010 Revenue

1 $m

61.8 94.5 152.7 197.5 138.0 139.1 224.8 343.9 390.5 2006 2007 2008 2009 2010 Net profit $m

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SLIDE 17

Change In Net Profit HY10 vs. HY09

197.5 (70.7) (9.7) (23.2) (1.3) 15.4 1.0 39.9 (10.9) 138.0 HY09 Hydrocarbons Power Minerals & Metals Infrastructure & Environment Corporate

  • verhead

Net Interest Income Tax FX Impact HY10 $m

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SLIDE 18

Hydrocarbons

Distribution of revenue even across regions

Significant drop in performance in the US

FX impact in line with previous guidance

Canadian result was well below previous corresponding period

1 Aggregated revenue 2 Regions in constant currency

Revenue % of Group 71.9% 73.2% 73.8% 76.2% 73.4% EBIT Margin 8.9% 9.3% 10.8% 11.2% 10.4% 817.3 1,026.0 1,760.3 2,373.7 1,768.9 2,579.1 3,604.8 4,740.1 1,869.1 2006 2007 2008 2009 2010 Revenue 1 $m AME 20% ANZ 21% Canada 24% E&A 17% USLAC 18% HY10 Revenue1 % by Region 273.9 258.2 '(0.1) 6.3 9.2 (16.8) (39.1) (23.3) 194.4 HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10 EBIT by Region HY10 vs 2H09 2 $m

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SLIDE 19

Power

US remains biggest market

US remains challenging due to legislative uncertainty concerning carbon

Refocus of US operation well underway. Charge of $5 million in half year

Growth in Europe driven by key nuclear contracts

1 Aggregated revenue 2 Regions in constant currency

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% 173.2 188.1 217.7 289.3 367.8 437.4 465.9 546.3 247.3 2006 2007 2008 2009 2010 Revenue 1 $m AME 7% ANZ 18% Canada 6% E&A 24% USLAC 45% HY10 Revenue1 % by Region 37.0 29.7 0.0 1.3 (0.9) 4.7 (14.7) (1.2) 18.8 HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10 EBIT by Region HY10 vs 2H09 2 $m

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SLIDE 20

Minerals & Metals

Results materially down on 1H09 as per previous guidance

Australia/New Zealand primary Minerals & Metals market; showing signs of recovery

1 Aggregated revenue 2 Regions in constant currency

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% 112.9 129.3 214.1 371.8 200.8 291.4 469.3 583.0 239.8 2006 2007 2008 2009 2010 Revenue 1 $m AME 23% ANZ 54% Canada 9% E&A 2% USLAC 12% HY10 Revenue1 % by Region 51.6 31.0 1.5 4.2 (5.0) (2.1) (0.4) (1.5) 27.7 HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10 EBIT by Region HY10 vs 2H09 2 $m

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SLIDE 21

Infrastructure & Environment

Australia/New Zealand largest market

Overall segment result positive, growth from 2H09

EBIT margin remains strong

1 Aggregated revenue 2 Regions in constant currency

Revenue % of Group 4.9% 6.1% 7.0% 5.6% 7.5% EBIT Margin 8.0% 9.5% 12.1% 8.6% 9.9% 31.5 112.4 162.0 221.3 121.6 214.9 342.4 350.0 191.9 2006 2007 2008 2009 2010 Revenue 1 $m AME 21% ANZ 47% Canada 22% E&A 6% USLAC 4% HY10 Revenue1 % by Region 20.8 9.4 (0.6) 9.0 2.0 1.5 (1.5) (0.8) 19.0 HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10 EBIT by Region HY10 vs 2H09 2 $m

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SLIDE 22

Cash Flow

$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 (59.2) (104.0) (82.4) (51.0) Net cash (outflow)/inflow from financing activities (6.8) 10.2 (110.5) (111.1) Key metrics: DSO (days) 73.0 99.4 87.0 75.3 Cash from operations / net profit (%) 77.9% 73.1% 118.7% 106.9%

Cash flow from operations remains >100% of NPAT

PP&E spend $27.7m in HY10, $78.3m in HY09

Dividends and acquisitions funded from existing capacity

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Liquidity & Gearing

Key Metrics Jun-08 Jun-09 Dec-09

Gearing ratio 31.4% 25.5% 24.5% Facility utilization 67.3% 54.2% 58.0% Average cost of debt 6.1% 5.5% 5.0% Average maturity (years) 4.6 4.1 3.9 Interest cover 11.7x 14.1x 13.4x Net Debt/EBITDA * 1.1x 0.8x 0.9x Bonding facility utilization 77.3% 52.9% 57.3%

Liquidity Summary $m Jun-08 Jun-09 Dec-09

Loan & OD facilities 1,094.0 1,376.1 1,260.9 Less: facilities utilized (735.9) (745.2) (731.0) Available facilities 358.1 630.9 529.9 Plus: cash 86.0 178.3 164.6 Total liquidity 444.1 809.2 694.5 Bonding facilities 221.9 452.5 433.0

Refinanced Syndicated Facility tranche of US$60m to Feb 2011

Loan and overdraft facilities of $260.1m maturing in calendar year 2010 ($64.7m overdraft)

Strong financial position: gearing of 24.5%; retain significant financial capacity

Note: includes liabilities held for sale * Rolling 12 months

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SLIDE 24

24

Half Year Results 2010 Sector Review & Outlook John Grill

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SLIDE 25

Hydrocarbons Industry Status

E&P worldwide budget for 2010 forecast to increase by 11% (Barclay’s Capital) “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 large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability.”

Dave O’Reilly, Chairman and CEO, Chevron Corporation (now retired)

“...our strategic plan to steadily increase oil sands production as we embark on a period of disciplined, but significant growth.”

Rick George, President and CEO, Suncor Energy

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SLIDE 26

Hydrocarbons

Major current projects include:

Singapore Singapore Parallel Train ExxonMobil

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 Development Projects United Arab Emirates Shell (Kashagan) Full Field Development Kazakhstan SAMREF Clean Fuels Project Saudi Arabia Shell Albian Sands Expansion 1 Canada Shell Canada Alliance Contract Canada Woodside Pluto LNG Australia Woodside North Rankin 2 Australia

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SLIDE 27

Hydrocarbons Outlook

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

  • pportunities

Cost effective development of North American shale gas

Downstream development by NOC’s

Restart of Canadian oil sands projects BP Assets Gulf of Mexico, USA

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SLIDE 28

Power

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 Conversion Canada Siemens Oaskarsham2 Power Uprate Sweden Southern Co Scherer Air Quality Project Upgrade United States Tennessee Valley Authority Plant Support Contract United States BHP Billiton RG6 Project Australia

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SLIDE 29

Power Outlook

Bruce Power, Ontario Canada

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 the world, including Western Europe, the Middle East and in the US

The renewables market, in particular solarwind and biofuels is growing on the back of technology development

Refocusing power operations to respond to changed markets

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SLIDE 30

Minerals & Metals

 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 Plant China Southern Copper Toquepala Concentrator Peru Sasol Shondoni Mine Project South Africa Vale Inco Integrated Services Australia Xstrata Strathcona Mill Canada

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SLIDE 31

Minerals & Metals Outlook

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

Iron-ore, coal and copper continue to

  • ffer significant project opportunities

Continue to build South American presence on strong project outlook Ma’aden Alumina, Saudi Arabia

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SLIDE 32

Infrastructure & Environment

 Major current projects include:

Customer Project Region

ConocoPhillips APLNG Environmental Impact Study and Approvals Consultant Australia Doha Port Committee New Doha Port Qatar EMAL Aluminium Smelter Abu Dhabi Ivanhoe Oyu Tolgoi Copper Mine Infrastructure Mongolia Ma’aden Phosphate Infrastructure Saudi Arabia OPR Oakajee Port and Rail Development Australia SAMC Ras Al Zawr Port Saudi Arabia Water Corporation Perth Desalination - Marine Australia Woodside Pluto Infrastructure Australia

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SLIDE 33

Infrastructure & Environment Outlook

Fortescue Metals Group, Australia

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, Australia, the US and the Middle East

Restarts in Minerals & Metals for ‘pit-to-port’ projects

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SLIDE 34

Group Outlook

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 supporting our view of a more significant weighting of earnings in the second half of the financial year. The company is confident that its medium-term and long-term prospects remain positive based on its competitive position and strong financial capacity.

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35

Half Year Results 2010

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Appendix - FX Translation Impact

Currency Annualized AUD $m NPAT translation impact of 1c ∆ AUD:USD 1.2 AUD:GBP 0.8 AUD: CAD 0.9 Currency HY09 HY10 FY09 ∆ AUD:USD 78.8 86.9 (10.3%) AUD:GBP 44.9 53.0 (18.2%) AUD: CAD 87.1 93.7 (7.6%)

60.0 65.0 70.0 75.0 80.0 85.0 90.0 95.0 100.0 105.0 110.0 115.0 120.0 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Movement in Major Currencies

USD GBP CAD

AME 19% ANZ 25% Canada 21% E&A 16% USLAC 19%

HY10 Revenue1 % by Region

1 Aggregated revenue

FX translation impact ~$11m net profit HY10 vs. HY09