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H1 2015 RESULTS – WorleyParsons Limited

WorleyParsons Limited · Feb 25, 2015 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. H1 2015 RESULTS – WorleyParsons Limited – slide 1
    Half year results 2015 Andrew Wood
  2. H1 2015 RESULTS – WorleyParsons Limited – slide 2
    Overview Performed well despite increasingly volatile conditions 3.6% underlying NPAT growth Margin improvement achieved as promised MTG and ANI acquisitions completed Getting better at what we do Low crude price has minimal impact…
  3. H1 2015 RESULTS – WorleyParsons Limited – slide 3
    Financial snapshot Aggregated revenue1 of 3,614m, down 4.7%2 Minimal revenue benefit from FX Underlying NPAT3 of 104.3m, up 3.6%2 Underlying EBIT margin up to 5.0% Operating cash flow down to 78m Gearing at the bottom of target…
  4. H1 2015 RESULTS – WorleyParsons Limited – slide 4
    OneWayTM to Zero Harm Performance Improving Total Recordable Case Frequency Rate (TRCFR) for HY2015 is 0.09 (HY2014: 0.12) Update on Zero Harm Initiatives Continued focus on land transport Implementing step change in field HSE…
  5. H1 2015 RESULTS – WorleyParsons Limited – slide 5
    Half year results 2015 Simon Holt
  6. H1 2015 RESULTS – WorleyParsons Limited – slide 6
    Group Financial Profile Improved margin and earnings growth HY2015 HY2014 vs. HY2014 Aggregated revenue1 (m) 3,613.7 3,792.6 (4.7%) Underlying EBIT2 (m) 180.8 178.2 1.5% Underlying EBIT margin 5.0% 4.7% 0.3% Underlying Net…
  7. H1 2015 RESULTS – WorleyParsons Limited – slide 7
    Underlying NPAT (m) By business line Reflects changes in contribution to EBIT at constant currency (5.6) 1.7 3.4 (14.0) 13.6 3.8 0.7 100.7 104.3 7
  8. H1 2015 RESULTS – WorleyParsons Limited – slide 8
    Underlying NPAT (m) By sector Reflects changes in contribution to EBIT at constant currency 36.7 (27.7) (24.1) 13.6 1.7 3.4 100.7 104.3 8
  9. H1 2015 RESULTS – WorleyParsons Limited – slide 9
    Margin profile Improved EBIT and NPAT margins Group Underlying EBIT Margin % 8.0% 7.2% 6.9% 6.1% 9.4% 1H prior years 7.1% 7.3% 7.6% 2H prior years 1H current year 7.3% % Full year 6.6% 6.5% 4.7% 5.0% FY2011 FY2012 FY2013…
  10. H1 2015 RESULTS – WorleyParsons Limited – slide 10
    Half year results 2015 Segment results
  11. H1 2015 RESULTS – WorleyParsons Limited – slide 11
    Operational EBIT Business Line earnings Operational EBIT m 287.2 275.9 227.2 226.0 37.6 22.7 23.7 27.5 (1.3) (0.3) Services Major Projects Improve Development Total Operational EBIT margin by Business Line % 1H FY2014 1H…
  12. H1 2015 RESULTS – WorleyParsons Limited – slide 12
    Services HY2015 HY2014 vs. HY2014 Revenue flat in a Aggregated revenue m 2,808.0 2,843.7 (1%) difficult market Professional services m 2,209.7 2,243.0 (1%) Margins Construction and fabrication m 438.9 482.3 (9%) unchanged at…
  13. H1 2015 RESULTS – WorleyParsons Limited – slide 13
    Major Projects HY2015 HY2014 vs. HY2014 Aggregated revenue m 377.6 496.9 (24%) Professional services m 360.4 479.7 (25%) Procurement revenue with margin m 17.2 17.2 0% Segment result m 22.7 37.6 (40%) Segment margin % 6.0% 7.6%…
  14. H1 2015 RESULTS – WorleyParsons Limited – slide 14
    Improve HY2015 HY2014 vs. HY2014 Aggregated revenue m 363.4 402.8 (10%) Professional services m 361.6 397.5 (9%) Procurement revenue with margin m 1.8 5.3 (66%) Segment result m 27.5 23.7 16% Segment margin % 7.6% 5.9% 1.7%…
  15. H1 2015 RESULTS – WorleyParsons Limited – slide 15
    Development HY2015 HY2014 vs. HY2014 Aggregated revenue m 64.7 49.2 32% Professional services m 59.4 46.8 27% Procurement revenue with margin m 5.3 2.4 121% Segment result m (0.3) (1.3) 77% Segment margin % (0.5%) (2.6%) 2.1%…
  16. H1 2015 RESULTS – WorleyParsons Limited – slide 16
    Operational EBIT by Sector Hydrocarbons EBIT improvement Operational EBIT by CSG m 287.2 275.9 247.5 207.6 28.4 23.8 55.8 0.0 Hydrocarbons Minerals, Metals & Infrastructure Total Chemicals Operational EBIT margin by CSG % 1H…
  17. H1 2015 RESULTS – WorleyParsons Limited – slide 17
    Hydrocarbons HY2015 HY2014 Sector margin recovery Aggregated revenue m 2,696.9 2,731.1 across Major Projects, Professional services m 2,118.8 2,151.0 Services and Improve Construction and fabrication m 438.9 482.3 Decline in Major…
  18. H1 2015 RESULTS – WorleyParsons Limited – slide 18
    Minerals, Metals & Chemicals HY2015 HY2014 Overall sector margins under Aggregated revenue m 447.4 571.1 pressure Professional services m 441.5 556.4 Margins and project activity declined across Major Procurement revenue with margin…
  19. H1 2015 RESULTS – WorleyParsons Limited – slide 19
    Infrastructure HY2015 HY2014 Break even result due to poor Aggregated revenue m 469.4 490.4 performance in Services Professional services m 430.8 459.6 Gross margin declined across Procurement revenue with margin m 37.5 27.5 all…
  20. H1 2015 RESULTS – WorleyParsons Limited – slide 20
    Group revenue and EBIT By region Aggregated revenue m 44% 40% 25% 24% 24% 22% 1,645 1,445 6% 5% 6% 4% 944 871 839 878 162 216 203 204 APAC NA LAM EURMENA SSA HY2014 HY2015 % of total aggregated revenue Operational EBIT m…
  21. H1 2015 RESULTS – WorleyParsons Limited – slide 21
    Half year results 2015 Capital Management
  22. H1 2015 RESULTS – WorleyParsons Limited – slide 22
    Cash flow Fair cash flow generation m HY2015 HY2014 Underlying EBIT 181 178 Depreciation and amortization 53 54 Interest and tax paid (104) (54) Working capital/other (52) 52 Net cash inflow from operating activities 78…
  23. H1 2015 RESULTS – WorleyParsons Limited – slide 23
    Gearing metrics Gearing within target range HY2015 HY2014 Gearing ratio % 26.9% 24.6% Facility utilization1 % 62.7% 53.9% Average cost of debt % 4.8% 5.5% Average maturity (years) 3.9 4.2 Interest cover2 (times) 8.7x 8.6x Net…
  24. H1 2015 RESULTS – WorleyParsons Limited – slide 24
    Liquidity Financial capacity to support growth Liquidity summary HY2015 FY2014 Loan, finance lease & overdraft facilities (m) 1,988 1,783 Less: facilities utilized* (m) (1,247) (897) Available facilities (m) 741 886 Plus: cash (m)…
  25. H1 2015 RESULTS – WorleyParsons Limited – slide 25
    Half year results 2015 Andrew Wood
  26. H1 2015 RESULTS – WorleyParsons Limited – slide 26
    Getting better at what we do What we delivered Core Program on track Workflow simplification well underway WorleyParsons Academy, Houston Campus opened eBis integrated solutions moving into implementation phase Global Delivery…
  27. H1 2015 RESULTS – WorleyParsons Limited – slide 27
    Step outs What we delivered Dennis Finn appointed to lead Advisian from September 2014 MTG Acquisition completed in October 2014 Advisian to be established as standalone business line Digital Enterprises key wins 27
  28. H1 2015 RESULTS – WorleyParsons Limited – slide 28
    Group Leadership Team 28
  29. H1 2015 RESULTS – WorleyParsons Limited – slide 29
    Business line outlook Services Opportunities in North America Cord activity levels remain high APAC supported by long term contracts in Australia and Chemicals in China Activity levels growing in the Middle East, Europe…
  30. H1 2015 RESULTS – WorleyParsons Limited – slide 30
    Business line outlook Major Projects long duration projects 2 recent awards in Alaska Expect oil related projects to be subject to additional review Global framework agreements, such as BASF underpin pursuits Pursuing opportunities…
  31. H1 2015 RESULTS – WorleyParsons Limited – slide 31
    Sector outlook HYDROCARBONS Customers reconsidering investment plans in the near term Modest declines expected in revenue and gross margin Benefits of actions taken and further overhead reductions expected to temper effect on…
  32. H1 2015 RESULTS – WorleyParsons Limited – slide 32
    Group outlook Having taken decisive action to ensure the business responds to market conditions and customer needs, the company is well positioned to manage through declines in market activity expected in the near term. Management will…
  33. H1 2015 RESULTS – WorleyParsons Limited – slide 33
    Q&A Half year results 2015
  34. H1 2015 RESULTS – WorleyParsons Limited – slide 34
    Supplementary information Half year results 2015
  35. H1 2015 RESULTS – WorleyParsons Limited – slide 35
    Revenue reconciliation m HY2015 HY2014 Revenue and other income 4,418.9 4,822.9 Procurement services at nil margin (1,057.3) (1,306.4) Share of revenue from associates 255.4 289.5 Net gain on revaluation of investments -…
  36. H1 2015 RESULTS – WorleyParsons Limited – slide 36
    Aggregated revenue by type m HY2015 HY2014 vs. HY2014 Aggregated revenue 3,613.7 3,792.6 (5%) Professional services 2,991.1 3,167.0 (6%) Construction and fabrication 438.9 482.3 (9%) Procurement revenue at margin 182.2 138.9…
  37. H1 2015 RESULTS – WorleyParsons Limited – slide 37
    Reconciliation m HY2015 HY2014 EBIT 180.8 189.6 Less net gain on revaluation of investments previously - (11.4) accounted for as equity accounted associates Underlying EBIT 180.8 178.2 NPAT 113.1 119.8 Less non-controlling…
  38. H1 2015 RESULTS – WorleyParsons Limited – slide 38
    Dividend history Interim dividend of 34.0 cps (HY2014: 34.0 cps) FY2011 FY2012 FY2013 FY2014 HY2015 Interim dividend (cps) 36.0 40.0 41.5 34.0 34.0 Franked % 100% 79% 100% 25% 7.9% m total 88.6 98.3 102.4 83.9 84.1 Final dividend…
  39. H1 2015 RESULTS – WorleyParsons Limited – slide 39
    Foreign Exchange Total EBIT Currency Average exchange rate Spot exchange rate USD movement movement Pegged BRL 1.78% 5.97% BRL CAD 2.76% (6.41%) AUD CNY (2.59%) (13.91%) GBP (6.09%) (5.55%) NOK 4.90% 4.41% USD USD (3.35%)…
  40. H1 2015 RESULTS – WorleyParsons Limited – slide 40
    FX translation impact Movement in major currencies Group EBIT FX Impact Since FY2011 FY2011 FY2012 FY2013 FY2014 HY2015 110.0 45 35 105.0 25 41 15 5 Am 4 4 100.0 -5 -18 -15 -32 -25 95.0 -35 -45 90.0 Jan-14…
  41. H1 2015 RESULTS – WorleyParsons Limited – slide 41
    Strength in diversification 35,100 157 46 people offices countries 41
  42. H1 2015 RESULTS – WorleyParsons Limited – slide 42
    Diversification in earnings Top 10 customers deliver 33% of the gross margin Top 10 projects deliver 15% of the gross margin Top 10 locations deliver 68% of the operating EBIT ASX announcements through FY2014 and HY2015 accounted…
  43. H1 2015 RESULTS – WorleyParsons Limited – slide 43
    Significant awards Revenue Revenue 145+ million 31 1.5+ billion 10 45 9 8 Revenue 43 150+ million
  44. H1 2015 RESULTS – WorleyParsons Limited – slide 44
    IOC Capital Expenditure Modest capex declines CAPEX of Top 10 Oil Majors (B) Aggregate Totals 350 300 250 200 150 100 50 2011 2012 2013 2014 2015E 2016E PetroBras PetroChina ExxonMobil Chevron Shell China Petro & Chem…
  45. H1 2015 RESULTS – WorleyParsons Limited – slide 45
    NOC Capital Expenditure Modest capex declines National Oil Companies Top 14 (excl Saudi Aramco) 250 Global CAPEX Spend (US B 200 150 100 50 Source: Macquarie Capital Markets 45
  46. H1 2015 RESULTS – WorleyParsons Limited – slide 46
    Contractual acronyms CY Calendar year EDS Engineering and Design Services E&P Engineering and Procurement EPC Engineering, Procurement and Construction EPCM Engineering, Procurement and Construction Management ESA Engineering…

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