The Worleyparsons Limited (ASX: WOR) share price is coming under pressure today after the company released its FY19 results. Shares traded hands nearly 7% lower at around lunchtime today.

WorleyParsons is a global professional services company which provides expertise in engineering, procurement and construction in the hydrocarbons, power, infrastructure, mining and minerals, and chemical sectors.

In April this year, the company completed a $4.6 billion acquisition of the Energy, Chemicals and Resources (ECR) division of US-based technical provider Jacobs. As a result, the company is now branded as Worley.

What Did Worley Report?

The global engineering group’s annual net profit more than doubled to $151.9 million on the back of its $4.6 billion acquisition of Jacobs’ ECR division.

The results are a little messy due to the huge acquisition which effectively doubled the size of the company overnight. A more appropriate gauge of performance is likely to come from the underlying results, which focus on the performance of the continuing operations of the company.

Underlying EBITDA was up 32% to $412.8 million, while underlying net profit after tax and amortisation (NPATA) was up 43% to $259.8 million.

The company managed to reduce leverage from 2.1 to 1.9 in the first 6 months of 2019, helped by operating cash flow of $236.3 million.

A final dividend of $0.15 was declared bringing the full year dividend to $0.275, placing Worley shares on a dividend yield of 2%.

So, Why Is The Share Price Falling?

Whilst the results would indicate that things are heading in the right direction, it’s a concession by management that seems to have spooked investors. Markets within which the company operates are being tempered by macroeconomic global uncertainty and management used cautious language regarding the company’s outlook.

Worley did not provide any specific guidance and remained vauge on its expectations for the new-look business, which failed to instill confidence in investors.

Management Comments

Commenting on the result, CEO Andrew Wood said: “Our business has been through one of the most transformative and dynamic periods in our history. By bringing together Worley Parsons and “ECR” to create Worley, we have created an organisation of 58,100 people supporting the delivery of vital energy, chemicals and resources infrastructure to communities in 51 countries around the world.”

Where To Now For The Worley Share Price?

Long-term shareholders have been on a wild ride over the past 12 months, with the share price briefly breaking through the $20 barrier this time last year only to crash to below $11 in the week before Christmas. Since then, the share price has recovered from those lows but has once again come under significant pressure today.

The Worley share price will be largely dependent on the success of the integration of the ECR business over the coming year. The company will be hoping that market conditions continue to improve, which will serve to make the process that much easier.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Luke has no financial interest in any companies mentioned.