2.1 Matters relevant to understanding WorleyParsons’ financial position

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WorleyParsons is a professional services provider to the resources, energy and industrial sectors.

THERE ARE FOUR ITEMS THAT ARE KEY TO UNDERSTANDING OUR FINANCIAL POSITION:
  1. Operating cash flow
  2. Gearing ratio
  3. Debt facility utilization
  4. Loan and overdraft facilities.

 

 
FY2014
$'M
FY2013
$'M
Comments
Movement

1. Operating cash flow

550.1

443.5

Our operating cash flow comprises the payments we receive from our customers less the amount we pay our suppliers, plus related interest and tax paid. In our financial statements, operating cash flow is called net cash inflow from operating activities.

 Our operating cash flow increased by 24% in FY2014 when compared to FY2013 due to our continued focus on cash collection.

2. Gearing ratio

19.5%

25.3%

Our gearing ratio is our net debt divided by the sum of our net debt and our total equity, at the end of the financial year.

 

Our gearing ratio decreased by 5.8% percentage points in FY2014 when compared to FY2013 due to the repayment of US$140.5 million of US Private Placement (USPP) debt. 

This ratio is below the lower end of our gearing target of 25% to 35%.

3. Debt facility utilization

50.3%

55.5%

Our loan, finance lease and overdraft facilities utilization is the amount of our debt facilities utilized at the end of the financial year.

 

Our debt facility utilization decreased by 5.2 percentage points in FY2014 when compared to FY2013 due to our improved cash flow performance.

4. Loan, finance lease and overdraft facilities

1,782.6

1,912.4

Our loan, finance lease and overdraft facilities are the amount of our debt facilities at the end of the financial year.

The amount of our loan, finance lease and overdraft facilities decreased during FY2014 due to the repayment of a tranche of USPP debt.