Is WorleyParsons in Trouble?

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Tuesday, February 16th, 2016
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WorleyParsons has denied a media report that it is considering an equity raising to offset rising debt levels.

The engineering and construction giant said it has been considering deleveraging its balance sheet as it aligns its business to market conditions, but has sufficient liquidity available.

Earlier, The Australian newspaper reported the engineering firm could bring $300 million to $400 million rights issue this year, at a significant discount.

“As a result of the actions already underway and proposed, the available headroom to its borrowing covenants and available liquidity, the company is not planning an equity raising,” WorleyParsons has said.

The company has been under financial pressure as key customers in the mining and energy sectors struggle with low commodities prices.

It announced a $54.9 million loss in 2014/15, and has frozen executive pay and axed 6,000 jobs since 2013 in an effort to cut costs to offset the effects of the downturn in the resources industry.

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