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WorleyParsons annual profit gain more than 60 per cent for third year running; 75pc of earnings from oil and gas

Posted by gmarkets on 20 September, 2007

Engineering consultancy WorleyParsons cemented its place among Australia’s best-performing companies yesterday, reporting an annual profit gain of more than 60 per cent for the third year running, reported The Australian Financial Review (28/8/2007, p. 14).

Ambition remains: Despite guiding the company through one of its most successful years — including agreeing to buy Canada’s Colt Companies for $1.1 billion in February — founder and chief executive John Grill’s ambition was far from sated, the paper said. The result highlights a dramatic rise that had made Mr Grill one of Australia’s wealthiest men. His 13.7 per cent stake in the group was worth $1.2 billion at market close yesterday.

Oil and gas provides bulk of profits: The company employed almost 24,000 people in 32 countries who provided engineering and project management services to sectors such as oil and gas, power, and metals and mining. The business was heavily weighted towards oil and gas, from which it gets 75 per cent of its earnings before interest and tax, the AFR said.

Environmental diversification planned: The company also unveiled an initiative yesterday, EcoNomics, which will expand its environmental consulting services. Mr Grill said this was a response to clients’ growing needs in the area and would be a key component of WorleyParsons’ growth this financial year. Macquarie Research analyst Andrew Wackett said he expected environmental engineering to be a growth area for WorleyParsons, which has the skill base to supply clients with sustainable and emissions-related technologies. “This means engineering work to modify facilities, reduce energy consumption, reduce emissions etc,” Mr Wackett said in a note to clients.

The Australian Financial Review, 28/8/2007, p. 14

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