WorleyParsons Posts 1H Profit Rise, Remains Optimistic on O&G Outlook

WorleyParsons said Wednesday that it is confident about the outlook for its hydrocarbons segment, amid increased capital expenditure announcements from major oil companies.

In its earnings statement, the company said that it expects "a high number of greenfield and brownfield opportunities and favorable economics to continue to drive increased gas utilization and oil production projects."

In the six months to Dec. 31, 2012, WorleyParsons posted Wednesday a net profit of $160.6 million (AUD 155.1 million), up 2.1 percent from the previous corresponding period of $157.1 million (AUD 151.9 million).

In the same period, WorleyParsons recognized a 33.7 percent lift in revenue at $4.6 billion (AUD 4.4 billion). The company's hydrocarbon segment helped boost its profit, accounting for $2.9 billion (AUD 2.8 billion), up 14 from one year ago.

"Demand for our hydrocarbons services remains strong. We continue to see a high level of development activity in unconventional oil and gas around the world. The low cost of natural gas in the U.S. continues to drive downstream developments, including pipelines, petrochemicals, liquefied natural gas and gas-to-liquids projects," WorleyParsons said in its earnings report.

"We believe that our global experience in coal seam methane, tight gas and shale gas positions us very well in this market by enabling us to provide a differentiated and proven market offering," the company added.

WorleyParsons is also expecting to employ more workers in line with its ambitions to grow its hydrocarbons segment.

"Our people numbers have declined marginally from Jun. 30, 2012. However, we expect people numbers to increase over the second half [of this year]," the company said. At present, WorleyParsons employs 40,400 workers.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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