Engineering giant WorleyParsons expects to meet its financial year profit targets due to cost cuts made in the face of weak market conditions.
The company’s net profit in the first half of the 2013/14 year was $112 million, down 28 per cent from $155 million in the previous corresponding period.
The company said revenue and earnings were down across its Australian business due to reduced activity in the oil and gas sector, ongoing weakness in minerals and metals and the resulting contraction in resource related infrastructure projects.
Costs from restructuring efforts, which have included more than 500 job cuts across its global operations, also impacted earnings.
Chief executive Andrew Wood hinted at the possibility of more restructuring, saying the company was conducting an in depth review of its business to position the company for future earnings growth.
Still, the company expects to report an underlying net profit for the full year in the range of $260 million to $300 million, as it indicated in November.
Underlying profit in the half year was $101 million.
“Notwithstanding the impacts weaker than expected market conditions are having on our performance, the cost reduction program we implemented together with the momentum from recent contract awards should position us for medium term growth,” Mr Wood said.
WorleyParsons has four business areas servicing the oil and gas, power, mining and infrastructure industries.
The company declared an interim dividend of 34 cents per share, down from 41.5 cents a year earlier.