WorleyParsons Limited

QGC awards engineering and project management agreement:WorleyParsons Limited (ASX: WOR) is awarded a new engineering and project management agreement from QGC Pty Limited (QGC) for three years with options for two additional one-year terms. As per the agreement, WOR will provide engineering, procurement, construction management and project management services to support QGC across the upstream and midstream facilities from the Surat Basin to Curtis Island. The group also bagged a service contract by Trans Mountain Pipeline L.P. in Canada to provide skilled resources as an extension to the Trans Mountain Expansion Project (TMEP) management team for construction monitoring and inspection on the TMEP.

On the other hand, WorleyParsons is considering the impact of the US Tax law changes on its financial position as at 31 December 2017 and on its effective tax rate going forward. The Company's current estimate, which is subject to further analysis and clarification of a number of items, is that there will be a one-time charge at 31 December 2017 to the Group income tax expense of between A$45m and A$60m. This charge relates to a reduction in the Group’s US deferred tax assets due to the decrease in the US corporate tax rate from 35% to 21% and to the potential loss in future years of currently available deductions.

Meanwhile, WOR stock has risen 4.38% in three months as on February 02, 2018 and we give a “Hold” recommendation on the stock at the current price, given the latest works the group has in hand and the future tax scenario.

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