On 7 November 2018, WorleyParsons Limited (ASX: WOR) announced that it has been awarded a frame agreement for engineering and construction (E&C) services and an engineering, procurement and construction (EPC) contract in the UK with ConocoPhillips U.K., Ltd. Following this news, the share price of the company increased by 10.199 percent as on 7 November 2018.
Under the E&C contract, the company will provide E&C services to assets in the central and southern North Sea and under the EPC contract, the company will provide EPC services, including pre-commissioning and commissioning, for a subsea tieback project to an existing platform. WorleyParsons’ UK Integrated Solutions will provide the services for both the contracts. WorleyParsons’ CEO Mr. Andrew Wood said the management of the company is delighted to continue its long-term relationship with ConocoPhillips in the ongoing development and support of their North Sea assets.
The company also made an announcement stating that the Rosenberg WorleyParsons has been awarded an EPCI contract by Lundin Norway ASO in the Norwegian Continental Shelf. The services include planning, engineering, prefabrication, offshore installation and commissioning support. The objective of the modification is to prepare Lundin’s Edvard Grieg platform to receive and process oil and gas from nearby offshore fields. The project will start immediately, and it has a duration of two and a half years and the WorleyParsons Rosenberg in Stavanger will execute all the services of the project.
Further, the company also provides update in relation to the Retail Entitlement Offer of its 1 for 1.47 accelerated non-renounceable pro-rata entitlement offer which was announced on 22 October 2018. The Retail Entitlement Offer is closing at 5:00pm (AEDT) on 7 November 2018 and will raise around $1.1 billion at $15.56 per share and together with the institutional component of the Entitlement Offer, the total amount raised under the Entitlement Offer will be approximately $2.9bn.
The company’s largest shareholder Dar Group took up approximately $185 million of its entitlements through the Institutional Entitlement Offer and has today provided a binding commitment to take-up its remaining $476 million in entitlements in the Retail Entitlement Offer. This will result in Dar Group taking up 100% of its entitlements under the Entitlement Offer.
In FY18, the aggregate revenue of the company increased by more than 8.5 percent to $4,749.2m compared to last year. The underlying EBIT margin on aggregated revenue for the Group grew to 6.3 percent in FY18 compared with 5.9 percent in FY17. The operating cash flow of the company uplifted from $78.9m in FY17 to $259.7m in FY18. The net debt of the company decreased to $662.5m. The return on equity increased from 5.5 percent in FY17 to 6.8 percent in FY18.
In the last six months, the share price of the company decreased by 8.97 percent as on 6 November 2018, and traded at PE level of 60.390x. WOR’s shares traded at $15.505 with a market capitalization of circa $5.48 billion as on 7 November 2018 (AEST 3:30 PM).
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