Oh dear, from mining bellwether Worley Parsons:
Only a matter of weeks after issuing guidance of a modest profit outlook for the year ahead, resources sector specialist WorleyParsons has flagged a steep profit decline, admitting there has been no uplift in activity so far this financial year.
It now expects the year to June net profit to run at $260-300 million, which is well short of the recent forecast of $322 million.
WorleyParsons shares dived 22.4 per cent to $16.75 in early morning trade.
It blamed a “delay in [the] upturn in our markets”.
The December half net profit is expected to run at $90-100 million, indicating a heavy reliance on a second half uptick to meet the latest forecast.
You must be bloody joking. This is a shocker for management. They were banking on a turnaround in demand as we head of the capex cliff?
Even so, markets should be pricing this already. I can only repeat, anyone still playing this space has rocks in their head. The capex cliff has barely begun.
