Embed Size (px)
Citation preview
1 Full Year Results 2009
2
Overview
Good performance for the 2009 Financial Year
Challenging markets for oil sands in Canada and minerals & metals in Australia
US, Europe, Middle East, and other markets in Canada and Australia experienced strong operating conditions
Kashagan Full Field Development, Kazakhstan
3
Financial Highlights
Net profit after tax $390.5M Up 13.6%
Aggregated revenue $6,225M Up 27.0%
EBITDA $693.2M Up 18.1%
Operating cash flow $546.4M Up 175%
Earning per share 161.1c/s Up 13.0%
Dividend 55 c/s fully franked
Strong financial capacity
4
Snapshot
Consolidated position in mega-project execution and management
Performance underpinned by extensive long term contracting base
Sustainability offering continues to be well received by customers, leading to projects and opportunities with a significant EcoNomicsTM component
Quick reaction to shift in market in Canada and Australia
Shell Martinez, USA
5
Safety Performance
Some outstanding LTI Free milestones:• 20,000,000 Manhours - Mega EPCM project Saudi Arabia• 10,000,000 Manhours - Mega EPCM project Canada• 9,000,000 Manhours - Fabrication yard Thailand• 6,500,000 Manhours - Construction yard China• 5,000,000 Manhours - Nigeria operations
0.020.02Lost Workday Case Frequency Rate*
0.110.14Total recordable Case Frequency Rate*
20092008CATEGORY
* WorleyParsons applies the US OSHA (United States Occupational Safety & Health Administration) reporting requirements
6
People
4 million workshare hours completed
28,800 personnel 37 countries
7
Mega-ProjectsCurrently involved in 57 “mega-projects”• Across the full development
spectrum- from study to execution
Systems established
Harsh and remote climate experience
Woodside Pluto LNG, Australia
8
Mega-ProjectsKashagan full field development
SAMREF’s clean fuels project
Taccamol integrated chemical complex
ExxonMobil PNG LNG development
Integrated Gas Development program management
Egypt’s first nuclear power plant
SAMREF Refinery, Saudi Arabia
9
Long Term ContractsSecured 23 new long term contracts
Renewed 9 contracts
Currently servicing over 150 customers around the world through these long term collaborative contracts
Projects focussed on energy reduction and efficiency increases
Continue to invest in our systems and process in this area
Petro Canada facility, Canada
10
Long Term ContractsBP global offshore operations
Chevron strategic contractor relationships
ExxonMobil Malaysia ESA
ConocoPhillips Indonesia ESA
ConocoPhillips Australia ESA
AGIP KCO O&M technical services in Kazakhstan
CNOOC, CNPC frame agreements in China
Bayu Undan Offshore Facility, Australia
11
Optimisation and Recovery Advanced CoalRenewables
Carbon Management CCSAdvanced Gas
Biological Solutions
First in our peer group to fully embed and integrate sustainability into our core business and project management processes
12
Responding to the GFC
Revisited our cost base and margins, identified innovative solutions and refocused our teams across all markets
Reduction in personnel in Canada and Australia
Reviewed all internal costs and initiatives, funding those we determined to be essential
Three Executive Directors and Managing Directors in Canada & ANZ have undertaken a reduction in base salary of between 10% and 15%
“Sharing the pain” with customers is essential in long term relationships
Substantially improved operating cash flow in 2009 and subsequent reduction in gearing
13 Full Year Results 2009
Financial ResultsDavid Housego
14
Financial Profile
AUD $m FY05 FY06 FY07 FY08 FY09 vs. FY08
Revenue 1 1,379.5 2,464.4 3,534.6 4,900.7 6,225.1 27.0%
EBITDA 117.0 219.9 353.4 587.0 693.2 18.1%
EBITDA margin 8.5% 8.9% 10.0% 12.0% 11.1% (0.9%)
Net profit 66.5 139.1 224.8 343.9 390.5 13.6%
Net profit margin 4.8% 5.6% 6.4% 7.0% 6.3% (0.7%)
5 Year CAGR 66.2% 67.7% 66.3%
Normalized EPS (cps) 2 35.8 66.9 105.4 153.4 172.8 12.6%
Cash flow from operating activities 91.1 115.7 195.9 198.8 546.4 174.8%
1 Aggregated revenue2 Before amortization of intangibles including tax effect of amortization expense
15
Financial Ratios
Target ROE: 20%
1 Aggregated revenue
197.5
H2
66.5
139.1
224.8
343.9
390.5
2005 2006 2007 2008 2009
Net profit $m
H1
3,259.6
H2
1,379.5
2,464.4
3,534.6
4,900.7
6,225.1
2005 2006 2007 2008 2009
Revenue 1 $m
H1
8.5 8.9
10.0
12.0 11.1
2005 2006 2007 2008 2009
EBITDA Margin %
24.5
32.1 31.3
24.5 25.4
2005 2006 2007 2008 2009
Return on Equity %
16
Change In Net Profit FY09 vs. FY08
Tax rate 28.6% (FY08: 28.9%)FX translation impact ~ $29m net profit vs. FY08. USD 2009 74.9c v’s 2008 89.6c
343.9
116.6 1.1 0.3 (14.4) 2.6 (20.9)(11.9)
(19.8)(7.0) 390.5
200.0
250.0
300.0
350.0
400.0
450.0
500.0
FY08 Hydrocarbons Power Minerals & Metals
Infrastructure & Environment
Corporate overhead *
Depreciation & Amortisation
Net Interest Income Tax Minority Interest
FY09
$m
17
Segment Results
FY08 FY09 Change
HydrocarbonsRevenue 3,612.5 4,749.1 31.5%EBITDA 438.5 555.1 26.6%EBITDA Margin 12.1% 11.7% (0.4%)
PowerRevenue 469.2 547.7 16.7%EBITDA 65.4 66.5 1.7%EBITDA / Revenue 13.9% 12.1% (1.8%)
Minerals & MetalsRevenue 471.1 589.2 25.1%EBITDA 85.3 85.6 0.4%EBITDA / Revenue 18.1% 14.5% (3.6%)
Infrastructure & EnvironmentRevenue 342.6 367.6 7.3%EBITDA 49.4 35.0 (29.1%)EBITDA / Revenue 14.4% 9.5% (4.9%)
18
Cash Flow
$m FY05 FY06 FY07 FY08 FY09EBITDA 117.0 219.9 353.4 587.0 693.2
Interest and tax paid (34.4) (54.7) (65.9) (137.4) (215.8)
Working capital / Other 8.5 (49.5) (91.6) (250.8) 69.0
Cash flow from operations 91.1 115.7 195.9 198.8 546.4
Key metrics:
Net working capital / revenue (%) 4.0% 5.1% 6.8% 8.7% 5.2%
DSO (days) 81.3 69.3 77.4 87.4 67.8
Cash from operations / net profit (%) 137.0% 83.2% 87.2% 57.8% 139.9%
19
Cash Flow
0
100
200
300
400
500
600
FY05 FY06 FY07 FY08 FY09
AUD $M
Cash flow from operations
(400.0)
(200.0)
‐
200.0
400.0
600.0
800.0
1,000.0
FY05 FY06 FY07 FY08 FY09
AUD $M
Cash flow from financing activities
(1,000.0)
(900.0)
(800.0)
(700.0)
(600.0)
(500.0)
(400.0)
(300.0)
(200.0)
(100.0)
‐
FY05 FY06 FY07 FY08 FY09
AUD $M
Cash flow from investing activities
Cash flow from operations up 175%No acquisitions in year; proceeds from asset sale; increase in PP&E to $148mRepayment of borrowings; ($100m) increased dividends; no new equity
20
Liquidity & Gearing
Liquidity Summary $M Jun-07 Jun-08 Jun-09
Loan & OD facilities 761.9 1,094.0 1,376.1
Less: facilities utilized (518.3) (735.9) (745.2)
Available facilities 243.6 358.1 630.9
Plus: cash 118.6 86.0 178.3
Total liquidity 362.2 444.1 809.2
Bonding facilities 184.5 221.9 452.5
Key Metrics Jun-07 Jun-08 Jun-09
Gearing ratio 22.3% 31.4% 25.5%
Facility utilization 68.0% 67.3% 54.2%
Average cost of debt - 6.1% 5.5%
Average maturity (years) - 4.6 4.1
Interest cover 16.0x 11.7x 14.1x
Net Debt/EBITDA 1.1x 1.1x 0.8x
Bonding facility utilization 55.4% 77.3% 52.9%
Refinanced US$190m and A$115m of loan facilities (new syndicated facility limit of US$300m), US$60m maturing in Feb 2010 and US$240m maturing in Feb 2012
Loan and overdraft facilities of $368.9m to be refinanced in 2010 ($46.8m overdraft) – 58% of available headroom. $178m cash
Bonding and guarantee capacity increased in 2009 to $452m.
21
Other
Final dividend declared of 55 cps; 100% franked• To be paid on 28th September 2009; record date 3rd September 2009
AGM: 27th October 2009
Investor Day: late November 2009 (Date to be confirmed)
EPS hurdle for 2010 award. Compound growth of CPI + 8% EPS growth for 3 years
Investor mix at 31 July 2009: • 25% founders & staff• 25% domestic institutions• 21% foreign institutions• 29% other investors
22 Full Year Results 2009
Sector Review & OutlookJohn Grill
23
Hydrocarbons
Major projects executed in 2009• Shell’s Albian Sands - Canada• Woodside’s Pluto LNG - Australia• Petrobras’ Comperj complex - Brazil• SAMREF’s refinery - Saudi Arabia• Saudi Aramco’s Ras Tanura - Saudi Arabia
Key awards• Keystone pipeline expansion - linking oil
sands to US refineries• Point Thompson - Alaska• Gas Treatment Plant - Alaska• Polimerica’s Jose Olephins - Venezuela
Revenue $4,749.1M +31%
EBITDA $555.1M +27%
Margin 11.7% -0.4%
24
Hydrocarbons
OUTLOOK:Expect similar result as FY09
• Growth in Middle East, US• Offset by
- FX on higher Australian dollar- Decline in earnings in Australia- Rebuilding of demand in Canada
BP Assets, Gulf of Mexico
25
Power
Economic crisis affecting demand and capital availability, however we are seeing opportunities for growth
Power plant upgrades and infrastructure projects in US, Saudi Arabia, Singapore, Canada, Peru
PMC and engineering for Vietnam Electricity
Owners Engineering role in Canada, US, Bulgaria Mexico, Vietnam
Relationships with GE and Siemens
Leader position in Solar – 11 countries• World’s first solar tower in Spain
Revenue $547.7M +17%
EBITDA $66.5M +2.0%
Margin 12.1% -1.8%
26
Nuclear
Bruce Power, Canada
Experiencing significant work in operating and new build plants• Bulgaria• Egypt• Armenia
10 year development schedule
STARS Licence Renewal in US• Providing plant life extension
submissions
Extension of Fossil Plants long term contracts to include nuclear fleet
27
Power Outlook
OUTLOOK:Key drivers include• Continued performance in the US• Regional development in Europe• Nuclear and renewable developments
We would expect growth in earnings inthe Power sector in 2010
Solar Power
28
Minerals and Metals
Experienced rapid slowdown in second half
Continued role on EMAL, Abu Dhabi
Ma’aden Phosphate success has led to phosphate projects in:• Egypt• Australia• South Africa
Key Awards• Tia Maria Copper – Peru• Serra Sul Iron ore – Brazil• Lead Smelter – Australia• Coal study – South Africa
Revenue $589.2M +25%
EBITDA $85.6M 0%
Margin 14.5% -3.6%
29
Minerals and Metals
OUTLOOK:As confidence grows we see renewed interest in progressing projects
Likelihood of new project development to remain subdued
Encouraged by the continuing spend in Improve
Expect earnings to be materially below FY09
EMAL, Abu Dhabi
30
Infrastructure and Environment
Sector impacted by contraction of resources sector
Successfully completed our role on FMG
“Pit to Port” Program Management• FMG• Karara Iron ore• Oakajee Port and Rail
Rail recognised globally• Singapore underground station• Mecca- Medina – Jeddah high speed rail
link
Site and Master Planning• Nigeria, South Africa, China
Pit to Port Solutions
Revenue $367.6M +7%
EBITDA $35.0M -29%
Margin 9.5% -4.9%
31
Infrastructure & Environment
Fortescue Metals Group, Australia
OUTLOOK:Outlook is improving in 2010
Solid demand in • Water • Waste water• Desalination• Remediation services• Carbon advisory services
Nascent recovery in resource sector projects
We currently expect animprovement in earnings in thissegment in 2010
32
Awards - Select
Colorado Governor’s Energy Office Environmental Studies - USAAlberta Oil Sands Water Use Strategy Study - CanadaClimate Change Engineering Risk Assessment - GlobalClimate Change Study, London, World Bank. - GlobalUltra Clean Coal Assessment - USANuclear powered Aluminium smelting feasibility study - RussiaAMAL Steam FEED – OmanSulphur Recovery Unit revamp –SingaporeAcid Plant Review - Bulgaria
AGRP Feed – KuwaitYolla Platform expansion – AustraliaClio Upstream study – AustraliaAS2 Conceptual Study - CanadaVanykov Smelting process –KazakhstanAir and Noise modelling – SpainBlock 8 North Study – South AfricaOnshore LNG study – NorwayWheatstone LNG T2 – AustraliaBorouge 3 Feasibility study – Abu DhabiIGCC plant evaluation – USASUBAN Gas Plant Phase 3 study -Indonesia
33
Awards - Deliver
Fertil 2 EPC Phase – Abu DhabiBelene NPP – BulgariaTaylorville OE – USAVoyageur Pipeline – CanadaRefinery expansion – CanadaKarara PMC – AustraliaLM 600a Peking Units – USANCP Petrochemical Phase 4 – Saudi ArabiaFirebag Stage 4 – CanadaMabruh Oil Al Jurf Phase 2 – Abu DhabiBiomass Conversion – CanadaGrowth Area Station Program - Australia
Doha Port expansion – UAESiemens T-Power – USALER project – ChinaMCE C485 Project – SingaporeSakhalin II offshore processing – RussiaAlumina refinery – Saudi ArabiaHeng Shan project – AustraliaPerth desalination – AustraliaLodi Energy centre- USABL England Phase III – USAAMAL Steam Project – OmanSEC Oil Pipeline CM – Saudi ArabiaLine 2 Mass Rapid Transport System -Singapore
34
Awards - Improve
Shell ESA – CanadaShell Martinez – USABP EPCM agreement – GlobalChevron Pipelines and terminals –GlobalImperial Oil ESA – CanadaPetro Canada ESA – CanadaChevron ESA – AngolaXcel Energy MSA – USAPacific Gas and Electric MSA – USAWestinghouse Electric MSA – USAOne Steel Whyalla – AustraliaGreat Point Energy - USA
ENMAX MSA - Canada Allegheny GSA – USAContra Costa Electric EPC MSA – USACon-Edison GSA - USAChevron Nigeria ESA Phase II – NigeriaTotal E&P Nigeria Limited, Frame Agreement - NigeriaBrunei Shell EDS extension – BruneiOneSteel Improve renewal – AustraliaPacificorp MSA – USAInco Vale Goro ISC – New CaledoniaConocoPhillips ESA – AustraliaSasol Technology Framework Agreement - Global
35
Summary 2010
Mega-project capability has resulted in significant awards across all the project phases
Long term contracts will underpin regional performance
Sustainability and Renewables capability seeing increased demand
Significant effort to “share the pain”with customers
Strength of Australian dollar
Canada and Australia stabilised, remainder of world robust
36
Sector Outlook
Hydrocarbons: Growth in Middle East and US offset by other factors. Result expected to be in line with FY09
Power: Regional development in Europe and Renewables
Minerals and Metals: Expected result materially below FY09, awaiting market investment. Improve contracts will underpin the performance
Infrastructure and Environment: Improving result
Santee Cooper Power Station, USA
37
Group Outlook
“Many of our key markets remain robust and we are encouraged by the evidence of some improvement in a number of the markets most affected in 2009 and by the continued award of significant contracts.
“However, the effects of extensive project deferrals and delays experienced through the second half of 2009 are expected to continue into 2010. Earnings will also be affected by ongoing pressure on margins and the likely negative impact of a higher Australian dollar.
“At this stage, the continuing uncertain market conditions make it unlikely that we can repeat this year’s result in the 2010 financial year. We expect, therefore, to report a modest decrease in earnings in 2010, with earnings weighted to the second half of the financial year.
“We are confident that our medium-term and long-term prospects remain very positive based on our competitive position and our strong financial capacity. The company continues to evaluate opportunities for new business growth that will add to our existing capabilities and provide value for our shareholders.”
38 Full Year Results 2009
39
Contractual AcronymsEDS – Engineering and Design ServicesE&P – Engineering and ProcurementEPC – Engineering, Procurement and ConstructionEPCM – Engineering, Procurement and Construction ManagementESA – Engineering Services AgreementESP – Engineering Services ProviderFEED – Front End Engineering and DesignFEL – Front End LoadingGSA – General Services AgreementOE – Owners EngineerPMC – Project Management Consultancy
40
FX Translation Impact
FX translation impact ~AUD $29m net profit vs. FY08 (5.2% growth vs. 13.6%)
Currency Annualized AUD $m NPAT translation impact of 1c ∆
AUD:CAD 0.9AUD:GBP 0.9AUD: USD 2.4
Currency FY08 FY09 FY08 ∆
AUD:CAD 90.6 87.1 4.0%AUD:GBP 44.8 46.3 (3.2%)AUD: USD 89.6 74.9 19.6%
65.070.075.080.085.090.095.0
100.0105.0110.0115.0120.0125.0
Jul-0
7
Sep-
07
Nov-
07
Jan-
08
Mar-0
8
May-
08
Jul-0
8
Sep-
08
Nov-
08
Jan-
09
Mar-0
9
May-
09
Jul-0
9
Movement in Major Currencies
USD GBP CAD
Asia & Middle East
17%
Europe & Africa14%
Americas20%
Canada25%
Australia & New
Zealand24%
Aggregated Revenue FY09
41
Gearing Ratio Reconciliation
Gearing Ratio
$M Net DebtTotal
EquityGearing
RatioJune 2008 649.9 1,416.5 31.4%FX impact 113.3 32.5Underlying debt repaid (99.8) -Underlying increase in cash (96.5) -Profit - 390.5Dividend paid - (207.0)Other - 22.6June 2009 566.9 1,655.1 25.5%
42
Key Metric Definitions / Calculations
Aggregated revenue• Aggregated revenue = statutory revenue + share of revenue from associates –
procurement services revenue at nil margin
Net working capital / revenue1
• Net working capital = trade & other receivables + WIP2 – trade & other payables – current provisions3
DSO• DSO = WIP2 + debtors4 / revenue1 * 365
Notes: • 1 Revenue = statutory “services” revenue (i.e. total statutory revenue excluding interest
income, dividends, other income and share of profit of associates)• 2 WIP = inventories + unbilled receivables• 3 Current provisions = current provisions + income tax payable – deferred revenue• 4 Debtors = trade receivables – allowance for doubtful debts• Balance sheet values are closing balances and include assets held for sale
43
Sector OutlooksHydrocarbonsOur expectation for Hydrocarbons in 2010 is a result similar to that reported in 2009, with expected growth in the Middle East and United States, offset by the anticipated foreign exchange impact of a higher Australian dollar, a decline in earnings in Australia due to the completion of a number of major gas projects, and a rebuilding of demand in the Canadian market.
PowerKey drivers in the Power sector in 2010 will be continued good performance in our US operations, our regional development in Europe, nuclear and renewable; such as solar and wind. National and international carbon emissions policies have the potential, when implemented, to further encourage investment in the power market.Notwithstanding the likely negative anticipated foreign exchange impact of a higher Australian dollar we would expect growth in earnings in the Power sector in 2010.Minerals and MetalsAs confidence continues to grow in the sector on the back of some recovery and stabilization in commodity prices, there is renewed interest and activity in the progression of a number of previously deferred or stalled projects. While the rate of new project development is likely to be subdued in 2010, our early-phase study and feasibility work should ensure we are well positioned when these projects recommence. We are also encouraged by the continuing spend in the asset services sector.However, at this stage we expect earnings in this sector for 2010 to be materially below those reported for 2009.
Infrastructure and EnvironmentThe outlook for the Infrastructure & Environment sector is improving in 2010. Solid demand in water and wastewater management, desalination, remediation services and carbon advisory services, in conjunction with the nascent recovery in major resource sector projects should result in increased demand for our services. We currently expect an improvement in earnings in this segment in 2010.
