Financial decline on the horizon

WorleyParsons has warned of a future financial decline despite a 2009 net profit of $390.5 million.

Despite announcing a net profit of $390.5 million for the year ending 30 June, professional services company WorleyParsons Limited has warned of a future financial decline in the face of an uncertain market.

“Many of our key markets remain robust and we are encouraged by the evidence of some improvement in a number of the markets most affected in 2009,” WorleyParsons chief executive John Grill said.

“However, the effects of extensive project deferrals and delays experienced through the second half of 2009 are expected to continue into 2010.

“We expect, therefore, to report a modest decrease in earnings in 2010, with earnings weighted to the second half of the financial year.”

WorleyParsons’ 2009 net profit represents a 14% increase over 2008, while aggregated revenue of $6.2 billion is an increase of 27.0% on the $4.9 billion from the previous corresponding period.

The company said it secured 23 new long-term contracts and extended nine others during 2009.

Grill also warned that a stronger Australian dollar will continue to have a negative affect on WorleyParsons’ bottom line.

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