The Minerals, Metals & Chemicals sector reported aggregated revenue of $938 million, an increase of 5% from the previous corresponding period. Minerals, Metals & Chemicals’ contribution to the Group’s aggregated revenue was 12%. Segment EBIT was $136 million with a reported segment margin of 14.5% (FY2012: EBIT $134 million; margin 15.0%).
The performance of the Minerals, Metals & Chemicals sector was underpinned by the strength of the global chemicals market, notwithstanding a significant slowdown of investment in major capital projects by our minerals and metals customers over the period, particularly in Western Australia.
The current market dynamics have seen our mining customers looking for improvements in efficiency and cost of production, particularly in mature, high cost regions. This has resulted in a greater emphasis on sustaining capital activities. To assist our customers with these activities, we are continuing the ongoing development of our Improve offering.
The acquisition of TWP Holdings Proprietary Ltd in March 2013 has further increased the geographic reach of WorleyParsons’ Minerals, Metals & Chemicals sector and enables us to offer our customers project delivery capabilities for underground mining and precious metals.
We will continue to globalize our Minerals, Metals & Chemicals offering and develop our long term relationships with major customers. We expect that asset optimization will continue to be a key concern in the year ahead. Project activity will predominantly be in early phase study work.
The global chemicals market continues to support strong investment in new developments and provides a high growth opportunity for WorleyParsons. We will continue to directly address this market particularly in the Middle East and the US, leveraging our strength in China, to benefit our customers across the globe.
We expect improved earnings in the Minerals, Metals & Chemicals sector in FY2014.
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