1.3.1 Business line performance

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WorleyParsons is a professional services provider to the resources, energy and industrial sectors.

Services

The Services business line delivers projects of all sizes across the full asset life cycle. It leverages our intimate understanding of our local markets and customers’ expectations, combined with the best technical capability locally and globally.

The Services business line reported aggregated revenue of $5,501 million and segment result2 of $439 million (FY2014: aggregated revenue of $5,618 million and segment result of $547 million). The segment margin declined to 8.0% from 9.7%.

Declines in earnings were experienced across all sectors. Declines in activity across our APAC and North American regions exceeded the improved performance in our other regions. WorleyParsonsCord delivered improved performance when compared with FY2014.

Major Projects

The Major Project business line was established to better manage the risks associated with major projects and provides our customers with specialization in the delivery of large complex projects.

The Major Projects business line reported aggregated revenue of $923 million and segment result of $46 million (FY2014: aggregated revenue of $863 million and segment result of $68 million). The segment margin declined to 5.0% from 7.8%.

Revenue increased due to the rise in low margin reimbursable expenses as several projects approached completion or transitioned to the field. Segment margin declined due to project cancellations and the effect of revenue mix as the proportion of low margin reimbursable expenses increased relative to higher margin engineering services.

Improve

The Improve business line was established to manage the risks associated with our major Improve contracts and provides our customers with global best practice solutions to optimize the performance of their operating assets.

The Improve business line reported aggregated revenue of $649 million and segment result of $37 million (FY2014: aggregated revenue of $786 million and segment result of $48 million). The segment margin declined to 5.7% from 6.1%.

The decline in revenue in Improve was primarily due to cuts to sustaining capital expenditure of oil sands customers. Segment margins declined as a result of the lower project activity and the impact of concessions negotiated with customers.

Development 

The Development business line reported aggregated revenue of $154 million and segment result of $14.1 million (FY2014: aggregated revenue of $97 million and segment result of $1.4 million).

The business line result included eight months contribution from the acquisition of MTG Limited. MTG Limited is a US based management consulting firm in the oil and gas, petrochemicals and chemicals industries with operations in North America, the United Kingdom and Australia.

 2 Segment result is segment revenue less segment expenses excluding the items listed in Note 3 (G) to the financial statements on page 78.