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Flat profit result from WorleyParsons

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AAP

2013-02-13

Engineering giant WorleyParsons has posted a flat first half profit result and tempered its forecasts for the full year.

WorleyParsons made a net profit of $155.9 million in the six months to December 31, up two per cent from $155.1 million in the same period in the previous year.

The company has four business areas servicing the oil and gas, power, mining and infrastructure industries.

"Volatility in commodity prices impacted the market for our services and our growth in the first half," chief executive Andrew Wood said in a statement.

"The markets for our services improved towards the end of the period and we continue to expect growth for financial year 2013 on financial year 2012 underlying earnings.

"This positive outlook is subject to sustained business confidence and commodity prices remaining reasonably strong."

The company's earnings before interest and tax (EBIT) were $251.9 million in the six months to December, up 1.5 per cent on the previous corresponding period.

Worley Parsons shares were down 52 cents, or two per cent, at $24.85 at 1129 AEDT.

Morningstar analyst Peter Rae said the company's outlook appeared weaker than previous forecasts.

"This appears to be a downgrade from previous guidance for `good growth'," he said.

"The hydrocarbons (oil and gas) outlook remains strong but it seems the volatility in commodity markets has had a greater impact on some of the other businesses."

WorleyParsons declared a fully franked interim dividend of 41.5 cents per share, up from 40 cents for the same period in the previous year.