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WorleyParsons buys out JV partner Burns & Roe

Engineering services company WorleyParsons has moved to 100 per cent ownership of its Australian power and water joint venture Burns & Roe Worley Pty Ltd.
The buy-out of Burns & Roe followed a "disappointing" performance by the joint venture, which developed the Esperance power station two years ago and was currently building a new power station at Exmouth.
The acquisition price was $14.25 million representing a payment of $10 million for the services business and $4.25 million for infrastructure assets located in WA in which WorleyParsons has an existing ownership interest.
The main infrastructure assets were the Esperance and Exmouth power stations.
In its 2005-06 results announcements, issued in August, WorleyParsons said "the performance of the company's Australian power joint venture was disappointing with operational difficulties on a number of contracts contributing to a small loss in the year".
It said the $31 million Exmouth energy project had been affected by cost over-runs resulting in an impairment charge of $1.9 million being recorded against the carrying value of the project.
WorleyParsons added that the $90 million Esperance energy project, which was in its second year of operation, had performed in line with expectations.
The power and water business, which had 85 staff in WA, would be renamed WorleyParsons Projects.
WorleyParsons said the acquisition would allow it to fully integrate the projects business with its existing activities "allowing for better support and development of the power and water market in both the Australian and international markets".

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Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 29/06/18

1 year TSR5 year TSR
203rdWorleyParsons57%1%
722 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Revenue

th-WorleyParsons$5,213.5m
77 listed non wa companies ranked by revenue.
Source: Morningstar

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