WorleyParsons Drops by Record as Forecast Lowered: Sydney MoverDavid Fickling
WorleyParsons Ltd., Australia’s biggest oil and gas engineer, fell by a record in Sydney trading after saying profit will be less than a forecast given last month.
The stock dropped 26 percent, the most since its 2002 listing, to A$16.00 at the close in Sydney on volume about eight times the three-month average. Profit in the year ended June 2014 will be A$260 million to A$300 million, the company said in a regulatory statement today. WorleyParsons said at its shareholder’s meeting last month that profit would be more than the previous fiscal year’s A$322 million.
Australia’s engineering services companies are facing a tougher environment as slowing mining industry demand growth cuts revenue. Seven Group Holdings Ltd. said Nov. 12 it would cut about one in six jobs in its WesTrac Caterpillar Inc. dealership with earnings forecast to fall as much as 40 percent from a year earlier. Leighton Holdings Ltd., the country’s biggest builder, said Nov. 13 the value of booked contracts had fallen 6.3 percent in the year to September and debt levels were above its target.
WorleyParsons’s decline today wiped A$1.38 billion off its market value, according to data compiled by Bloomberg.