WorleyParsons Ltd. (WOR), Australia’s biggest oil and gas engineer, fell the most since a 2002 listing in Sydney trading after saying profit will be as much as 19 percent less than a forecast given last month.
The stock dropped 24 percent to A$16.49 at 12:35 p.m. in Sydney on volume more than four times the three-month average, hitting its lowest level since March 12, 2009. Net profit in the year ended June 2014 will be A$260 million to A$300 million, compared with a forecast given Oct. 9 of A$322 million, the company said in a regulatory statement today.
Australia’s engineering services companies are facing a tougher environment as slowing mining industry demand growth cuts revenue. Seven Group Holdings Ltd. (SVW) 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. (LEI), 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 more than A$1.2 billion off its market value, according to data compiled by Bloomberg.
To contact the reporter on this story: David Fickling in Sydney at dfickling@bloomberg.net
To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net
WorleyParsons Headquarters
An employee walks through the reception area in the headquarters of WorleyParsons Ltd. in Sydney.
An employee walks through the reception area in the headquarters of WorleyParsons Ltd. in Sydney. Photographer: Jack Atley/Bloomberg
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