Corporate Strategy

Our strategy is focused on enhancing and leveraging what we believe is the real essence of WorleyParsons and our core differentiators. That is our deep and broad technical capability and our diverse geographic presence. These two things differentiate us from our major global competitors and form the foundation for the strategy to deal with the unstoppable trends and the recent market shifts.

The key driver of investment in the global oil market for the last decade has been the concept of peak oil and the implied diminishment of supply. This in turn drove higher and higher levels of expenditure in the frontier regions to gain the harder to extract reserves. That trend changed in the last few years with the shale revolution in North America. Supply now, can be incrementally increased without the traditional big, long term investments. This, together with slowing growth rates in China, has created a challenging market place for both customers and service providers to the oil and gas sector. The same can be said for many of the resources related subsectors in which we operate. Given there has been such a fundamental shift in our key markets it was clear we had to make a fundamental shift in our business.

Responding to the unstoppable trends and recent market shifts

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.

A period of transition

We are in a period of transition to return the Company to growth. This is a journey we commenced in November 2013 as we sought to address the challenges we saw ahead.  In April 2014, before the fall in oil prices, we restructured the business, refreshed the leadership team, reduced our overhead costs and initiated programs to enable our staff to deliver better customer satisfaction.  We created the business lines of Services, Major Projects and Improve transferring direct accountability for performance to the leaders of those business lines. More recently we introduced the fourth business line, Advisian, to complete this restructure. Through the actions we have taken through financial year 2015 we built a foundation for growth over the next five years as we deliver on our strategy and “Realize our future”.