WorleyParsons promises ‘evolution’
ENGINEERING group WorleyParsons says it will keep evolving to account for “subdued market activity” after tumbling into the red over the past year.
The group yesterday posted a net loss of $54.9 million for the year to June, compared with a profit the previous year of almost $250 million. Its slump comes after the company cut the amount of goodwill on its books by $198.6 million. Revenue fell 8.6 per cent to $8.76 billion.
Chief executive Andrew Wood said revenue had fallen with declining market activity as low commodity prices caused customers to cut capital and operating spending.
WorleyParsons shares closed 6.3 per cent higher at $8.13.
Separately yesterday, shares in Drillsearch Energy surged 12.4 per cent to 68 after the oil and gas producer said its hedging program had helped soften the impact of lower commodity prices.
Drillsearch’s underlying profit beat analyst forecasts at $57.8 million for the year to June, down just 1.1 per cent on the previous year. A net loss of $8.1 million, compared with a $41.9 million profit a year ago, was largely due to a $51.9 million writedown related to assets in Queensland.