I'd be racing to empty if the below has some truth! Worley’s...

I'd be racing to empty if the below has some truth!


Worley’s ride

WorleyParsons boss Andrew Wood and chairman John Grill are due to meet with counterparts from new major shareholder Dar Group next week.
The talks come as potential rival bidders John Wood Group and Amec Foster Wheeler unveiled a $US2.7bn merger.
That deal was a long time coming as Amec got itself into trouble in 2014 buying the oil services firm as the cycle was bottoming for a fancy debt-funded price.
Wood Group is highly regarded and had the cash sitting in its pocket for the deal.
Some thought that cash may be ready for Worley.
Still, the prospects for Worley have not looked better for some time, which highlights the highly opportunistic approach from Dar Group in December.
Wood has taken out some $450m in overheads in the last two years, cutting staff numbers from 43,000 to 23,000 in the process.
The group now has its revenues spread around the globe and on Citi numbers every 1 per cent increase in revenues will add 13 per cent to earnings before interest and tax and 9 per cent to net profit. That’s a lot of upside leverage. It also explains why Grill and Wood will be urging shareholders to enjoy the ride rather than take the nearest exit.
Dar has maintained it is not interested in going above 20 per cent, which locks them out of the game for a while under truth in takeovers rules, but it’s not sitting on the register for its health.
Just what next week’s talk elicits remains to be seen.