1.3.1 Business line performance

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WorleyParsons is a professional services provider to the resources, energy and industrial sectors.

Services

The Services business line reported aggregated revenue of $3,437 million and segment result of $252 million (FY2015 restated: aggregated revenue of $4,336 million and segment result of $342 million). The segment margin declined to 7.3% from 7.9%.

Aggregated revenue was lower across all regions due to projects completing or moving into construction, and project deferrals and cancellations. The Middle East operations continued to perform well growing its contribution to the business. Segment margins decreased as the overhead reduction did not keep pace with declining revenues.

Major Projects

The Major Projects business line reported aggregated revenue of $1,281 million and segment result of $109 million (FY2015 restated: aggregated revenue of $1,610 million and segment result of $128 million). The segment margin improved to 8.5% from 7.9%.

Aggregated revenue declined as a result of project completions and other projects moving into construction during financial year 2016. Segment margins increased through the improved performance of our portfolio of major projects offset the decline and the improved margins from WorleyParsonsCord.

Improve

The Improve business line reported aggregated revenue of $519 million and segment result of $23 million (FY2015 restated: aggregated revenue of $580 million and segment result of $27 million). The segment margin declined to 4.5% from 4.7%.

Aggregated revenue declined primarily due to reductions in sustaining capital expenditure by oil sands customers. Segment margins declined modestly as overhead reductions partially offset the decline in project activity.


ADVISIAN 

Advisian became a standalone business line in FY2016. It incorporates the heritage advisory businesses of Evans & Peck, MTG and Digital Enterprise, previously reported under the Development group in FY2015 and the INTECSEA business and consulting personnel and their associated projects transferred from the Services business line. Advisian reported aggregated revenue of $656 million and segment result of $44 million (FY2015 restated: aggregated revenue of $701 million and segment result of $53 million). The segment margin declined to 6.8% from 7.5%.

Aggregated revenue and margin decreases were primarily associated with the decline in the Hydrocarbons consulting business in the Americas and investment associated with development of business in the new energy sector and Digital Enterprise. The Company will continue to invest in this business to build a globally significant consulting and advisory business.