September 2017
September 2017
Worley Parsons’ FY17 profit result confirmed a stabilisation in revenues, improved cash flows – including the collection of outstanding payments from various sovereign clients – and solid EBIT margins.
This confirmed Worley has been successful in adjusting its cost base in the face of a downturn in its core hydrocarbons market.
The outlook for Worley remains positive, with a bottoming in its global clients’ capital expenditure budgets, an improving win rate on large tenders and management expecting to retain savings, which will boost margins as demand returns.
Visibility on the strength and timing of any uptick in demand remains limited and dependent on the vagaries of oil price movements. This continues to check our position size on the Worley investment and we elected to take some profits in August.
We continue to monitor OPEC supply cuts closely.
View August 2017 reports