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WORLEY LIMITED — Capital/Financing Update 2007
Sep 25, 2007
66073_rns_2007-09-25_d3def3c3-052e-43eb-8196-eae87412417f.pdf
Capital/Financing Update
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26 September 2007
ASX Release
WORLEYPARSONS LIMITED
(ASX: WOR)
WorleyParsons awarded Facilities Construction Services contract for Enbridge Pipelines
WorleyParsons announces that Cord Projects, its Canadian - based construction and fabrication subsidiary, has reached an agreement with Enbridge Pipelines Inc. for the provision of facilities construction services on new and existing facilities at various locations within Alberta, Canada.
The term of the contract will commence effective immediately and the first term expires December 31, 2009. The indicative scope of work would lead to Cord Projects services valued at approximately CAD$90M.
Cord Projects provides mechanical, piping and structural work across Western Canada. This includes direct-hire construction services, shop fabrication and modularisation, commissioning and decommissioning and construction management.
Commenting, Mr Grill said: “This agreement extends a strong working relationship between one of WorleyParsons Canada largest customers, Enbridge Pipelines, and Cord Projects.”
WorleyParsons Acquires Polestar Applied Technology, Inc
WorleyParsons announces today that it has entered into an agreement to purchase Polestar Applied Technology, Inc. in a move that will expand WorleyParsons’ nuclear power capability and resources. The transaction is subject to U.S. regulatory approval and is expected to close in November 2007. The acquisition is valued at approximately US$11 million, representing an average 2006 - 2007 EBIT multiple of 5.9. While not material in a financial sense, this acquisition is considered to be of strategic significance as it extends the Company’s capabilities in the nuclear industry.
Founded in 1992, with offices in the USA and the UK, Polestar provides technical planning, engineering, nuclear safety and risk analysis, and related services to commercial and government clients in the USA and abroad. Polestar’s services cover all facility life-cycle phases including management and operations support and planning, security planning and testing, decommissioning planning, spent nuclear fuel storage and handling, financial and economic analyses, and communications services.
“The acquisition of Polestar increases WorleyParsons’ capability in the nuclear consulting and analysis segment of the international nuclear industry. Polestar provides recognized technology know-how that will enhance our already considerable nuclear capability and increase our breadth of services,” said John Grill, WorleyParsons’ Chief Executive Officer.
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For further information please contact:
David Housego Geoff Fowlstone Chief Financial Officer Fowlstone Communications Ph: +61 2 8923 6866 Ph: +61 2 9955 9899 Mob: +61(0) 413 746 949