Global engineering group Worley has announced a restructuring amid cancellations of chemicals projects, leading to a 35 per cent drop in interim net profit. The company reported a net profit of $119 million for the period. Worley provides engineering, procurement, and construction services to the energy, chemicals, and resources sectors. It focuses on delivering complex projects and providing advisory services.
The profit decline was primarily attributed to $82 million in restructuring costs, largely stemming from operations in Western Europe, where the company faces high labour costs. In response to these challenges, Worley has reduced its total headcount by 3.7 per cent over the six months ending December 31, bringing the total to 43,800 employees, compared to the previous six months. This reduction included an 8.3 per cent decrease in professional services staff, which now stands at 36,500.
Group revenue from professional services also experienced a decline, falling 10.5 per cent to $3.24 billion compared to the previous year. This decrease was primarily due to falling revenue within its chemicals division. However, the company saw increased revenue in its larger energy and resources businesses, which helped offset some of the losses.
Despite the profit dip, Worley’s group underlying EBITA was slightly higher at $377 million, compared to $376 million a year earlier. The company will pay an interim dividend of 25¢ per share, consistent with the previous year. Worley’s full-year outlook remains unchanged, with expectations for stronger growth in aggregated revenue and moderate growth in underlying earnings.
