Mining and construction services company Worley has boosted its reserves against the COVID-19 pandemic and the slumping oil price with a new $465 million of new debt.
It has reduced its staff by 5% to 56,000, but chargeable hours fell by 2% in March.
Earlier this year Worley announced it had liquidity of $1.36 billion. It has since secured an additional $465 million due in 12 months.
“On 30 March 2020, Worley announced credit approval had been received to extend approximately $480 million of working capital for an additional 12 months,” the company said yesterday.
“Since that date, Worley has worked with its banking partners and has secured an additional $465 million in 12-month facilities.
“These new facilities have been established on similar terms as existing facilities, further strengthening Worley’s liquidity position. Including these new facilities, Worley has renewed existing and established new facilities of a combined $945 million over the past month.
“To date, the impact on our business has mostly been on the lower margin construction-related activities that form part of our field-based services.
“Operationally, as a result of the current economic circumstances, there has been some contraction in the business from customers’ delays, deferral, and cancellations particularly in field-based work,” the company said yesterday.
“Partially offsetting this contraction is some acceleration in other parts of the business.”
The company says impact so far is limited because it has diversified in the past three years into energy, chemicals, and resources.
The shares eased 0.3% to $7.025. They were at $16 in January.
