Resources dip a hiccup for Worley Parsons

29 Aug 2012, 4:48 pm   -   Source: AAP

Worley Parsons has brushed off suggestions of a slow down in the resources sector and looks forward to further profit growth

Engineering giant Worley Parsons says the slow down in the Australian resources sector has had a relatively minor effect on the global company.

Worley Parsons expects to achieve good growth in underlying earnings in fiscal 2013 to build on the 16 per cent rise in underlying full year profit reported on Wednesday.

Chief executive John Grill said recently announced delays of some big resource projects and the cancelling of others had not had a big effect on earnings.

"The effect of that on us at this stage is relatively minor because it's one country out of a number we operate in," Mr Grill told a briefing.

"It's one customer sector group out of four, and we've got the opportunity to move work around to use up a number of the resources we have on the work that might have been postponed or cancelled."

Mr Grill said it was up to individual resources companies to comment on whether the mining boom was over or not, but his company was constantly monitoring the situation.

Worley Parsons' hydrocarbons and minerals business, which was exposed to the oil and gas sectors, remained its largest earnings contributor, but global economic conditions had proved challenging, he said.

"We continue to see an increase in the volume of projects in the unconventional oil and gas market," Mr Grill said.

Worley Parsons shares gained 12 cents to close at $26.32.

The company posted a net profit of $353 million for the year to June 30, down three per cent from the previous year

The previous result included a gain of almost $66 million on the value of the company's interests in associate entities although the gain in the year to June, 2012, was $7.6 million.

Without those investment revaluations, Worley Parsons' underlying profit was $346 million, up 16 per cent from the previous year.

The majority of the company's work is located overseas, and its underlying profit in the year to June included a $14.2 million impact from the higher value of the Australian dollar.

Mr Grill said further underlying earnings growth would be achieved through organic growth and by taking advantage of acquisition opportunities.

"We are confident that our medium and long-term prospects remain positive," he said.

The company will focus on opportunities in the developing world as it continues to bid for contracts in remote parts of the world.

Worley Parsons declared a final dividend of 51 cents per share, franked at 61.3 per cent.

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