The Hydrocarbons sector reported aggregated revenue of $5,332 million, and segment result of $475 million, with a margin of 8.9% (FY2014: aggregated revenue $5,372 million, segment result $517 million, margin 9.6%). Hydrocarbons’ contribution to the Group’s aggregated revenue was 74%, essentially the same as last year.
This represents a strong outcome against a backdrop of lower market activity, competitive pressures, concessions negotiated with customers and the absorption of $44.6 million in redundancy and onerous lease charges.
The increased contribution from the Major Projects business line and the Development Group (due primarily to the recent acquisition of MTG), partially offset the declines from the Services and Improve business lines.
The decline in Hydrocarbons earnings within the Services business line was primarily due to the APAC and North America regions. The APAC impact was due to the decline in LNG project activity in Australia as the various developments entered the latter stages of construction. In North America, the volume of new project opportunities has decreased with the sharp falls in oil price.
The Improve business line Hydrocarbon sector performance was impacted by customers in North America cutting back on sustaining capital expenditure.
Minerals, Metals & Chemicals
The Minerals, Metals & Chemicals sector reported aggregated revenue of $904 million and segment result of $44 million with a margin of 4.9% (FY2014: aggregated revenue $1,066 million, segment result $108 million, margin 10.1%). Minerals, Metals & Chemicals contributed 12% to the Group’s aggregated revenue.
The Minerals & Metals contribution came under pressure within the Services business line, as project activity in this market segment continued to decline in line with the sustained lower commodity prices. This is in contrast to the growing contribution made by our Chemicals division with increased opportunities in North America, Middle East and Asia.
Within the Major Projects business line the decline in the contribution from this sector was primarily due to the completion of the Fairway project and the cancellation of the Kami Iron Ore project.
The Infrastructure sector reported aggregated revenue of $992 million and segment result of $17 million with a margin of 1.7% (FY2014: aggregated revenue $926 million, segment result $39 million, margin 4.2%). Infrastructure’s contribution to the Group’s aggregated revenue was 14%.
Infrastructure revenue increased in the second half which combined with cost reduction initiatives undertaken improved the second half margin to 3.2% from the first half breakeven result.