WorleyParsons (WOR) Review

Submitted by Jim Thesiger on 17 June, 2008 - 13:19

There has been no changes to the WorleyParsons (WOR) earnings forecasts, valuation, DCF-based share price target or rating from stockmarket analyst Macquarie Research Equities.

WorleyParsons (WOR) Wins Russian Project

Sakhalin 1 Offshore Contract Win:

Worley’s 49% owned Russian associate Sakhneftegaz Engineering (SNE) has won the engineering, procurement and support services contract for the Exxon operated Sakhalin 1 Arkutan-Dagi offshore platform.

Modest Revenue Stream:

SNE expects to generate $28m in revenue from the contract in calendar 2008, and around $150m over five years. The impact on WOR is therefore likely to be modest. * Technically Challenging Project:

The project involves one of the largest float over platforms ever designed. It will be in sub-arctic waters, which we suspect will not decrease the degree of difficulty. If WOR is successful in executing this project we would expect that the expertise developed could be replicated in a number of very large projects over the next few years.

Valuation

There are no changes to our earnings forecasts, valuation, DCF-based share price target or rating. In the near term we view the strength of the A$ and C$ as the greatest risk to earning