The Worleyparsons Limited (ASX: WOR) share price hit a 52-week high of $13.82 yesterday despite the engineering services business releasing no specific news to the market. The stock is up around 10 per cent since the group handed in a $33.5 million net profit on revenues of $4.4 billion for the full year ending June 30, 2017.
On an underlying basis the profit was $123.2 million, down 23.% on the prior year, although investors are bidding up the shares on the basis that capex and opex across the local mining services industry is set to rebound off recent lows.
The group is also starting now to benefit from an FY 2017 that delivered some $500 million in cost savings, which helped improve its earnings before interest and tax margin to 5.9% from 5.3% over the most recent financial year. The engineer's market value is around $3.4 billion and it could deliver some solid profit growth over FY 2018 if it can win more work and maintain its margins.
