The company also said it expects continued growth profit in the second half, after posting a 53% jump in first half earnings.
“This is a unique opportunity for WorleyParsons to secure a leading position in one of the world’s largest and fastest growing hydrocarbons markets,” chief executive John Grill said.
“The acquisition will also extend WorleyParsons’ position as a Tier One service provider to the global hydrocarbons industry and materially enhance the group’s heavy oil, oil sands and cold weather technical capabilities.”
Canada has the world’s second-largest volume of oil reserves at 179 billion barrels, 98% of which are in oil sands. WorleyParsons estimates that capital expenditure in the Canadian oil sands sector alone is expected to exceed $C125 billion ($A135.4 billion) over the next decade if announced investment projects proceed.
WorleyParsons said acquisition of the Canadian design and project services business will be funded by $A333.2 million of debt, a $479.9 million share sale to existing investors and $342.3 million in exchangeable shares issued to the vendors.
The share offer, priced at $A21 per share, is underwritten by UBS AG.
Meanwhile, the company’s profit for the half year ended December 31 rose 53% to $94.51 million from $61.79 million in the year-ago period.
It said its hydrocarbons divisions had aggregated revenue growth of 26.3% to $1.03 billion.
WorleyParsons also said sustained high oil prices and increasing demand for gas would bring solid growth for the division.
The company could have more tricks up its sleeve. It has called a trading halt until next Wednesday, February 14.
