The Power sector reported aggregated revenue of $561 million, a decrease of 3% on the previous corresponding period. Segment EBIT was $49 million with a reported segment margin of 8.8% (FY2012: EBIT $61 million; margin 10.6%).
Our Power sector performance was materially impacted by increased costs on a lump sum procurement project in Brazil and the cancellation of a key project in both Europe and Canada.
Our customers in the developed world have been engaging in asset improvement, while our customers in the developing world have been building new generation and network capacity.
In the United States, Australia and Canada, we provided a range of Improve services in assets optimization and operation and maintenance, such as for the Tennessee Valley Authority in the United States.
In the developing world, WorleyParsons was awarded a number of projects in nuclear, conventional power generation and networks.
While there is some uncertainty in the global economy, we expect to continue to grow our support to resource and industry customers leveraging our Hydrocarbons and Minerals, Metals & Chemicals customer sector groups. In the developing world we expect demand for new capacity to continue to provide opportunities in power generation and networks.
We anticipate further demand for our services in the nuclear sector, given the expected expansion of nuclear programs in developing countries and increases in safety upgrades to existing reactors.
In order to strengthen our service offering to resource customers, we are combining our Power and Infrastructure & Environment sectors into a single customer sector group.
We expect improved earnings in the Power sector and the combined group in FY2014.
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