We expect global capital expenditure levels in Hydrocarbons for FY2015 to be flat compared with FY2014, with capital largely being directed to completing projects already underway. We believe our customers will need to initiate new projects in the medium term to maintain production, providing growth opportunities for WorleyParsons. We have recently been awarded three significant contracts, which for confidentiality reasons we are not yet able to announce, that underpin our confidence in our outlook.
We expect the trend of decreasing Minerals and Metals capital expenditure to continue for the next 12 months, but expect a recovery in the medium term. Chemicals industry capital expenditure is expected to remain strong within the US and we expect fertilizer demand will continue to provide increasing opportunities globally.
The outlook for resource-related infrastructure capital expenditure is linked to the outlook for the Hydrocarbons and Minerals, Metals & Chemicals sectors. Capital investment in non resource infrastructure has a stronger outlook where WorleyParsons’ expertise, particularly in environmental services, water and power generation and transmission, is being deployed to capture the opportunities in this market.
We have taken decisive action to improve margins and ensure the business is responding to market conditions and our customers’ needs. We are focused on realizing our objective of providing our shareholders a satisfactory return on their investments. We are confident in our prospects based on our competitive position, our diversified operations and our strong financial capacity.