Image source: © Joeppoulssen | Megapixl.com

Highlights

  • Worley delivered 21% YoY growth in aggregated revenue in FY23
  • The cost saving program of WOR resulted in annualized savings of AUD 375 million
  • The company is delivering expansion via increased automation, effective project delivery, streamlined operations and digitisation

Worley Limited (ASX: WOR) is an Australian firm which offers professional services to resource, chemicals and energy experts. The company actively collaborates with its client to execute projects and generate value throughout the lifespan of their assets.

The AUD 8281.39-million-market cap -firm witnessed a 21% YoY rise in its aggregated revenue to AUD 10,928 million in the financial year 2023 (FY23). While underlying EBITDA increased by 16% YoY to AUD 635 million.  During the reported period, the company witnessed a loss of AUD 240 million on sale of its North American maintenance and turnaround business, impacting its bottom line.

Top 10 shareholders of WOR

The top 10 shareholders of WOR have around 44.57% stake in the firm, while the top four have nearly 38.63% stake. Dar Al-Handasah Shair and Partners Holdings Ltd and T. Rowe Price Associates, Inc have the highest stake in the firm, with a shareholding of 23.50% and 6.60%, respectively.

Recent business update

Through an ASX-update dated 10 January 2024, the company claimed that the media reports concerning the company’s release dated 27 December 2023 are not correct in multiple aspects. WOR disagrees with the decision and is considering legal options. As per the release dated 27 December 2023, Worley offered its services in Ecuador from 2011 to 2017. In 2019, WOR initiated an arbitration associated to historic unpaid trade receivables owing to a subsidiary of WOR by Petroecuador, a state-owned company in Ecuador and a related state entity.

On 21 December 2023, the company revealed the 1QFY24 awards. The company highlighted that in the 1QFY24, its awards were in line with its expectations. WOR also shared that it continues to retain its outlook announced along with its FY23 results. Across sustainability related and traditional work, the company continued to secure early-phase project, which includes feasibility and FEED and wins in later phases as these projects advance.

Outlook

In FY23, the company invested AUD 37 million in organic investment and plans to invest AUD33 million in FY24. The target of FY24 investment will be additional addressable markets and aggregated revenue.

The focus in FY24 would be on scaling up growth area, developing front end consulting capabilities and development of differentiated technology solutions.

Share performance of WOR

WOR shares closed 0.25% down at AUD 15.68 apiece on 17 January 2024. With this, in the past one year, it has increased by 1.36% and in the last three months, it has dropped by 9.31%.

The 52-week high of WOR is AUD 18.13, recorded on 23 Augst 2023, and the 52-week low is AUD 13.27, recorded on 16 March 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 17 January 2024. The reference data in this report has been partly sourced from REFINITIV.