Engineering consultancy and service provider WorleyParsons has reported an 86% rise to net profit in FY18 and is forecasting higher earnings in FY19, thanks to improved conditions in resources and energy markets.
WorleyParsons’ infrastructure sector reported an 11.6% decline in aggregated revenue to $733.8 million, but a 16.9% growth in EBIT to $54.7 million.
The firm’s advisory division, Advisian, which works often in the rail space, reported a 7.8% revenue growth to $520 million.
WorleyParsons chief executive Andrew Wood said a sustained cost reduction program had helped deliver the near doubling of net profit, despite just 8.5% revenue growth.
“Our resources and energy strategy and sustained cost reduction program are delivering results,” Wood said.
“The significant increase in our cash flow delivered an improvement of our balance sheet metrics, a clear indicator of the underlying strength and resilience of our business.”
Wood said more action in the energy and resources sectors was helping the company’s books, and this benefit would continue in FY19.
“In the last six months, we have seen an increase in the rate of significant awards by our customers as they make decisions on the early phases of the next cycle of investment,” Wood said.
“Looking ahead, our backlog continues to increase, indicating upward momentum in market conditions.”