When developing our future growth strategy we firstly considered the underlying external context. There are a number of unstoppable trends that are driving the long term market dynamics. Climate change, urbanization, food security, water scarcity and the increasing challenge for our customers to gain the social license to operate, are examples of true, unstoppable trends that we believe create opportunities and hence need to be considered within the long term strategy development for WorleyParsons.
There have also been recent market shifts such as the oil price shock, low gas prices, the fall in iron ore, copper and coal prices which are affecting our customers’ investment decisions. We are also seeing an increase in lump sum turnkey (LSTK) contracts, the impact of increasing development costs and changes to the geopolitical landscape creating more complexity for our customers. While these recent market shifts present some challenges, we again see a number of opportunities for WorleyParsons in the near term.