We made substantial progress during the year on our near-term priorities including improving our level of customer satisfaction, reducing internal costs, streamlining our service delivery and strengthening our balance sheet.
Our cost reduction program lowered overheads by $170 million when compared to the prior year. By the end of June we have achieved annualized cost reductions of $200 million, exceeding our target of $120 million. These savings reduced the impact of lower revenues on our underlying EBIT margin.
The past 12 months have been a challenging time for our customers who have been impacted by sustained low commodity prices and the fall in oil prices. This has led to reduced activity levels across the resources and energy sectors. WorleyParsons has not been immune from the impact of this reduction in our customers' capital and operating expenditure, although our geographic diversification and broad range of services have been important factors in maintaining a resilient business.
Annual Report 2015
The 2014 financial year was a difficult year for WorleyParsons as we faced challenges in a number of our key markets. WorleyParsons is one of the most globally diverse companies in our international peer group, with a network of 157 offices in 46 countries. This global diversification has been an important factor in assisting WorleyParsons to offset challenging conditions in a number of key markets, particularly Australia, by capitalizing on opportunities in better performing markets.
Annual Report 2014 (PDF)
Annual Report 2014 Microsite