1 Half Year Results 2010
Overview
A reasonable result in challenging market
Variable conditions in a number of markets Power operations (particularly US) US Hydrocarbons (Downstream)
Canada region and Minerals & Metals result materially down on prior period
Expected this shortfall Encouraging signs in both markets for second half
Middle East continues to perform strongly
Market entry into Brazil through acquisition of CNEC
Australian Infrastructure capability strengthened with acquisition of Evans & Peck
Financial Overview
Aggregate revenue $2,548.1m down 21.7%
Net profit after tax $138.0m down 30.1%
Operating cash flow $147.5m down 37.1%
Earnings per share 56.8c/s down 30.4%
Dividend 35.5c/s fully franked
Negative FX translation impact of $10.9m
Strong financial capacity
Snapshot
Strategic push into LNG Increased number of Improve relationships Increased exposure on new LNG trains
100% renewal on all expiring major long-term contracts 4 material contract renewals Breadth and scope of long-term contracts
Sustainability solutions remain a focus
Good cost management and reduced capital expenditure in the period
Improved second half result anticipated
Safety PerformanceCATEGORY FY09 1H10
Total Recordable Case Frequency Rate*
0.11 0.15
Lost Workday Case Frequency Rate*
0.02 0.02
(* WorleyParsons applies the US OSHA reporting requirements)
MAJOR SAFETY ACHIEVEMENTS IN THE PERIOD
40 Million hours LTI free on Shell’s AOSP project
35 Million hours LTI free on Ma’aden’s Phosphate project
10 Million hours LTI free on ADGAS’s OAG 1 project
British Safety Council “Sword of Honour”
Safety Awards from Sunoco and One Steel
Houston Business Roundtable Safety Excellence Award
Nigeria DeltaAfrik HIV/AIDS Program launched
CURRENT CHALLENGES
Sustained industry growth which is translating into an expanded skills demand
An aging workforce
More construction activity and use of contractors with no industry experience
Projects are bigger, more complex and delivery times shorter
Young people are invincible!
Operations
29,100 personnel* 40 countries*Which includes 700 personnel with CNEC acquisition
Impact of Middle East Projects
UNITED STATES
NEW ZEALAND
CANADA
EUROPE
UNITED STATESChevronPhillips NCP Project SAMREF Clean Fuels,Kuwait Oil Company ProjectsRasTanura Refinery ExpansionSABIC Methyl Methacrylate/Acrylonitrile ProjectSipchem Ethylene Vinyl Acetate ProjectShah Gas Development
AUSTRALIA / NEW ZEALANDHalul Integrated Pipeline ProjectQatar Aluminium Khazzan Makaren EWTEgyphos Phosphatic Fertilizer EMAL Aluminium SmelterOman DUQM Project PDO Amal Steam Surface FacilityQatar Petroleum Power Study
CHINARas Tanura Refinery Tank FarmSAMREF Clean Fuels AMAL ProjectCNOOC LNG
CANADAGaSCO CO2 Recovery & Injection /Nitrogen Gen Plant PMCGASCO Project Management ContractNexen Petroleum EPCM ServicesShah and Habshan Railway FEED
UNITED KINGDOMChemaweyaat/ TacaamolKNPC Acid Gas Removal PlantGasco Integrated Gas Dev PMCOffshore Topside Facilities
ASIALNG Offshore Platforms and FacilitiesQatar Petroleum Power Supply FEEDQatar Petroleum Halul Submarine Power Cable
Al Khafji General Services Saudi Aramco Arabiyha Field DevelopmentMa’aden PhosphateMa’aden AluminaLondon Mining Wadi Sawawin Iron OreDubai Aluminium Sohar Aluminium Non Hydrocarbons projects
MIDDLE EAST
(Regions executing work)
LNG Projects Major strategic push to support
customers in their LNG developments
Currently we have Improve contracts covering 23 LNG trains with 8 different clients
We are executing, in our own capacity or in joint venture, projects at all stages for 17 new greenfield LNG trains
Woodside Pluto LNG – World’s First Pre-assembled LNG Plant
Improve Contract Renewals
SYNCRUDE• 5 year renewal 19 year relationship
IMPERIAL OIL• 5 year renewal 19 year relationship
TENNESSEE VALLEY AUTHORITY• 5 year renewal 19 year relationship
WOODSIDE PETROLEUM• 4 year renewal 15 year relationship
Long Term Contracts
AFRICA
UNITED STATES
NEW ZEALAND
AUSTRALIA
RUSSIA
CANADA
SOUTH AMERICA
MIDDLE EAST
EUROPE
ASIA
USA / LATIN AMERICA / CARRIBEAN43 Contracts
US Steel (New)Cogentrix Cedar Bay (New)Chevron Global Terminals (New)Tennessee Valley Authority (Renewal)AUST / NEW ZEALAND
46 ContractsAlcoa Bunbury/Wagerup (New)CS Energy Asset Management (New)Woodside North West Shelf (Renewal)Horizon Power (New)Vale Coal (New)
ASIA / MIDDLE EAST36 Contracts
Shell Malampaya (New)Brunei LNG (Renewal)Optimal Engineering and Construction Supervision Alliance (Renewal)
CANADA52 Contracts
Syncrude CoSyn (Renewal)Imperial Oil (Renewal)BP Canada (Renewal)
EUROPE / AFRICA12 Contracts
Esso Exploration Angola (New)SASOL Shared Services (New)Sembcorp Ultilities (New)Sellafield Multi Discipline Design House Services (New)
Sustainability Solutions
CNEC Overview
CNEC was part of the engineering & construction division of the Brazilian conglomerate Camargo Corrêa Around 700 people across Brazil, with
offices in Argentina and Peru
Customer base includes Petrobras, Vale and Electrobras
Established leader in hydropower within Brazil, with world class capability
Aim to become a hub for Brazil’s hydrocarbons deepwater market
Completion expected February 2010
Acquisition Price BRL 170 million (approximately $A110.0 million)
Evans & Peck overview
Evans & Peck provides high level business advisory services Around 350 employees across Australia,
with offices also in Hong Kong and Shanghai
Established leader offering strategic, commercial and contractual advice to governments and industry Water and waste water Rail services Mining and Resources
Acquisition Price total consideration of $88.5 million (cash $37.5 million and issue of new shares $51.0 million)
14 Half Year Results 2010
Financial ResultsDavid Housego
Financial Profile
$m HY09 HY10 vs. HY09 vs. 2H09
Aggregated Revenue 3,256.1 2,548.1 (21.7%) (14.1%)
EBIT 314.6 209.8 (33.3%) (27.8%)
EBIT margin 9.7% 8.2% (1.5%) (1.6%)
Net profit 197.5 138.0 (30.1%) (28.5%)
Net profit margin 6.1% 5.4% (0.7%) (1.1%)
Normalized EPS (cps) 1 87.8 62.8 (28.5%) (26.1%)
Cash flow from operating activities 234.5 147.5 (37.1%) (52.7%)
USD:AUD rate 0.788 0.869 (10.3%) (22.5%)
1 Before amortization of intangibles including tax effect of amortization expenseHY10 refers to the six months ended 31 Dec 2009; HY09 refers to the six months ended 31 Dec 2008; 2H09 refers to the six months ended 30 Jun 2009
Financial Profile
1 Aggregated revenue
Margin impacted by current market conditions
Effective tax rate down 5.9% to 25.2% due to change in earnings mix
NPAT FX translation impact $10.9m Dividend payout ratio maintained
8.1 9.0
10.6 9.7
8.2
2006 2007 2008 2009 HY10
EBIT Margin %
1,134.9 1,455.8
2,354.1
3,256.1 2,548.1 2,459.1
3,525.4
4,882.4
6,219.4
2006 2007 2008 2009 2010
Revenue 1 $m
61.894.5
152.7
197.5
138.0139.1
224.8
343.9
390.5
2006 2007 2008 2009 2010
Net profit $m
Change In Net Profit HY10 vs. HY09
197.5 (70.7)
(9.7)
(23.2)
(1.3)
15.4 1.0
39.9 (10.9)
138.0
HY09 Hydrocarbons Power Minerals & Metals Infrastructure & Environment
Corporate overhead
Net Interest Income Tax FX Impact HY10
$m
Hydrocarbons
Distribution of revenue even across regions
Significant drop in performance in the US FX impact in line with previous guidance Canadian result was well below previous
corresponding period1 Aggregated revenue2 Regions in constant currency
Revenue % of Group 71.9% 73.2% 73.8% 76.2% 73.4%EBIT Margin 8.9% 9.3% 10.8% 11.2% 10.4%
817.3 1,026.0
1,760.3 2,373.7
1,768.9
2,579.1
3,604.8
4,740.1
1,869.1
2006 2007 2008 2009 2010
Revenue 1 $m
AME 20%
ANZ 21%
Canada 24%
E&A 17%
USLAC 18%
HY10 Revenue1 % by Region
273.9258.2 '(0.1) 6.3 9.2 (16.8)
(39.1)
(23.3)194.4
HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10
EBIT by Region HY10 vs 2H09 2 $m
Power
US remains biggest market US remains challenging due to legislative
uncertainty concerning carbon Refocus of US operation well underway.
Charge of $5 million in half year Growth in Europe driven by key nuclear
contracts1 Aggregated revenue2 Regions in constant currency
Revenue % of Group 15.0% 12.4% 9.5% 8.8% 9.7%EBIT Margin 13.0% 13.2% 13.0% 12.2% 7.6%
173.2 188.1 217.7
289.3 367.8
437.4 465.9
546.3
247.3
2006 2007 2008 2009 2010
Revenue 1 $m
AME 7%
ANZ 18%
Canada 6%
E&A 24%
USLAC 45%
HY10 Revenue1 % by Region
37.0
29.7 0.0 1.3 (0.9)4.7 (14.7)
(1.2) 18.8
HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10
EBIT by Region HY10 vs 2H09 2 $m
Minerals & Metals
Results materially down on 1H09 as per previous guidance
Australia/New Zealand primary Minerals & Metals market; showing signs of recovery
1 Aggregated revenue2 Regions in constant currency
Revenue % of Group 8.2% 8.3% 9.6% 9.4% 9.4%EBIT Margin 13.8% 14.7% 17.0% 14.2% 11.6%
112.9 129.3
214.1
371.8
200.8
291.4
469.3
583.0
239.8
2006 2007 2008 2009 2010
Revenue 1 $m
AME 23%
ANZ 54%
Canada 9%
E&A 2%
USLAC 12%
HY10 Revenue1 % by Region
51.6
31.0 1.54.2 (5.0)
(2.1) (0.4) (1.5) 27.7
HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10
EBIT by Region HY10 vs 2H09 2 $m
Infrastructure & Environment
Australia/New Zealand largest market
Overall segment result positive, growth from 2H09
EBIT margin remains strong
1 Aggregated revenue2 Regions in constant currency
Revenue % of Group 4.9% 6.1% 7.0% 5.6% 7.5%EBIT Margin 8.0% 9.5% 12.1% 8.6% 9.9%
31.5
112.4 162.0
221.3
121.6
214.9
342.4 350.0
191.9
2006 2007 2008 2009 2010
Revenue 1 $m
AME 21%
ANZ 47%
Canada 22%
E&A 6%USLAC 4%
HY10 Revenue1 % by Region
20.8
9.4 (0.6)
9.02.0
1.5 (1.5)(0.8) 19.0
HY09 2H09 AME ANZ Canada E&A USLAC FX Impact HY10
EBIT by Region HY10 vs 2H09 2 $m
Cash Flow
$m HY07 HY08 HY09 HY10EBITDA 141.5 263.1 354.5 252.2
Interest and tax paid (34.7) (75.0) (102.9) (132.3)
Working capital / other (33.2) (76.5) (17.1) 27.6
Net cash inflow from operating activities 73.6 111.6 234.5 147.5
Net cash outflow from investing activities (59.2) (104.0) (82.4) (51.0)Net cash (outflow)/inflow from financing activities (6.8) 10.2 (110.5) (111.1)
Key metrics:
DSO (days) 73.0 99.4 87.0 75.3
Cash from operations / net profit (%) 77.9% 73.1% 118.7% 106.9%
Cash flow from operations remains >100% of NPAT PP&E spend $27.7m in HY10, $78.3m in HY09 Dividends and acquisitions funded from existing capacity
Liquidity & Gearing
Key Metrics Jun-08 Jun-09 Dec-09
Gearing ratio 31.4% 25.5% 24.5%
Facility utilization 67.3% 54.2% 58.0%
Average cost of debt 6.1% 5.5% 5.0%
Average maturity (years) 4.6 4.1 3.9
Interest cover 11.7x 14.1x 13.4x
Net Debt/EBITDA * 1.1x 0.8x 0.9x
Bonding facility utilization 77.3% 52.9% 57.3%
Liquidity Summary $m Jun-08 Jun-09 Dec-09
Loan & OD facilities 1,094.0 1,376.1 1,260.9
Less: facilities utilized (735.9) (745.2) (731.0)
Available facilities 358.1 630.9 529.9
Plus: cash 86.0 178.3 164.6
Total liquidity 444.1 809.2 694.5
Bonding facilities 221.9 452.5 433.0
Refinanced Syndicated Facility tranche of US$60m to Feb 2011 Loan and overdraft facilities of $260.1m maturing in calendar year 2010 ($64.7m overdraft) Strong financial position: gearing of 24.5%; retain significant financial capacity
Note: includes liabilities held for sale* Rolling 12 months
24 Half Year Results 2010
Sector Review & OutlookJohn Grill
Hydrocarbons Industry Status
E&P worldwide budget for 2010 forecast to increase by 11% (Barclay’s Capital)
“For it’s part, ExxonMobil is committed to disciplined and long-term investments in technologies that hold the promise of meeting the energy challenge.”Rex Tillerson, Chairman and CEO, Exxon Mobil
“Much of our 2010 spending continues to be on large, multiyear projects consistent with our upstream growth strategies and on improving operating efficiency and reliability.”Dave O’Reilly, Chairman and CEO, Chevron Corporation (now retired)
“...our strategic plan to steadily increase oil sands production as we embark on a period of disciplined, but significant growth.”
Rick George, President and CEO, Suncor Energy
Hydrocarbons
Major current projects include:
SingaporeSingapore Parallel TrainExxonMobil
Customer Project RegionAgip / Eni Agip Project Kazakhstan
Devon Energy Jack Fish 2 Modules Canada
ExxonMobil Artukun Dagi Russia
ExxonMobil MIPS Contract Nigeria
GASCO Integrated Gas Development Projects
United Arab Emirates
Shell (Kashagan) Full Field Development Kazakhstan
SAMREF Clean Fuels Project Saudi Arabia
Shell Albian Sands Expansion 1 Canada
Shell Canada Alliance Contract Canada
Woodside Pluto LNG Australia
Woodside North Rankin 2 Australia
Hydrocarbons Outlook Major customers CAPEX budgets
increasing Stabilized crude pricing Improving world economy
LNG markets continue to expand
Middle East remains strong, with Brazil, Russia, Iraq and Western Africa continuing to offer significant new opportunities
Cost effective development of North American shale gas
Downstream development by NOC’s
Restart of Canadian oil sands projects
BP Assets Gulf of Mexico, USA
Power
Major current projects include:
Customer Project RegionLilama Vung Ang1 Coal Station Vietnam
Tuas Power Tenbusu Cogeneration Singapore
Saudi Electric Qassim and PP10 Saudi Arabia
Belene Nuclear Power Plant Bulgaria
MENR Nuclear Power Programme Armenia
OPG Biomass Conversion Canada
Siemens Oaskarsham2 Power Uprate Sweden
Southern Co Scherer Air Quality Project Upgrade
United States
Tennessee Valley Authority
Plant Support Contract United States
BHP Billiton RG6 Project Australia
Power Outlook
Bruce Power, Ontario Canada
Power market remains challenging in US, Australia and Canada Carbon uncertainty has resulted in significant
delays Reduction in power demand (US)
Market improving in Europe, Asia and the Middle East
Nuclear programs are continuing to gain pace throughout the world, including Western Europe, the Middle East and in the US
The renewables market, in particular solarwindand biofuels is growing on the back of technology development
Refocusing power operations to respond to changed markets
Minerals & Metals
Major current projects include:
Customer Project RegionBHP Billiton Cerro Matoso Furnace Colombia
EMAL Aluminum Smelter Abu Dhabi
Gindalbie Karara Iron Ore Australia
Ma’aden Alumina Saudi Arabia
Ma’aden Ma’aden Phosphate Saudi Arabia
Orica Naning Detonator Plant China
Southern Copper Toquepala Concentrator Peru
Sasol Shondoni Mine Project South Africa
Vale Inco Integrated Services Australia
Xstrata Strathcona Mill Canada
Minerals & Metals Outlook Upward revisions in many of our
customers capex budgets Outlook improving on the back of
stronger commodity prices Constraints on sustaining capital
(Improve) spend have eased considerably
Focus on Tier 1 clients and those with secured funding
Iron-ore, coal and copper continue to offer significant project opportunities
Continue to build South American presence on strong project outlook
Ma’aden Alumina, Saudi Arabia
Infrastructure & Environment
Major current projects include:Customer Project Region
ConocoPhillips APLNG Environmental Impact Study and Approvals Consultant
Australia
Doha Port Committee New Doha Port Qatar
EMAL Aluminium Smelter Abu Dhabi
Ivanhoe Oyu Tolgoi Copper Mine Infrastructure
Mongolia
Ma’aden Phosphate Infrastructure Saudi Arabia
OPR Oakajee Port and Rail Development
Australia
SAMC Ras Al Zawr Port Saudi Arabia
Water Corporation Perth Desalination - Marine Australia
Woodside Pluto Infrastructure Australia
Infrastructure & Environment Outlook
Fortescue Metals Group, Australia
Water market long term fundamentals remain strong
Increased market interest in heavy haul, metro and high speed rail in Australia and China
Coastal & Marine opportunities improving with significant opportunities emerging in Brazil, Australia, the US and the Middle East
Restarts in Minerals & Metals for ‘pit-to-port’projects
Group Outlook
While WorleyParsons confirms that our current expectations of net profit after tax for the 2010 financial year remains in the range of $280 million to $320 million, we are encouraged by increasing activity in a number of regions and customer sector groups supporting our view of a moresignificant weighting of earnings in the second half of the financial year.
The company is confident that its medium-term and long-term prospects remain positive based on its competitive position and strong financial capacity.
35 Half Year Results 2010
Appendix - FX Translation Impact
Currency Annualized AUD $m NPAT translation impact of 1c ∆
AUD:USD 1.2
AUD:GBP 0.8
AUD: CAD 0.9
Currency HY09 HY10 FY09 ∆
AUD:USD 78.8 86.9 (10.3%)
AUD:GBP 44.9 53.0 (18.2%)
AUD: CAD 87.1 93.7 (7.6%)
60.065.070.075.080.085.090.095.0
100.0105.0110.0115.0120.0
Jun-
08
Aug-
08
Oct-0
8
Dec-
08
Feb-
09
Apr-0
9
Jun-
09
Aug-
09
Oct-0
9
Dec-
09
Movement in Major Currencies
USD GBP CAD
AME 19%
ANZ 25%
Canada 21%
E&A 16%
USLAC 19%
HY10 Revenue1 % by Region
1 Aggregated revenue
FX translation impact ~$11m net profit HY10 vs. HY09