Image source: © Joeppoulssen | Megapixl.com

Highlights

  • Worley is engaged in providing engineering design and project delivery services
  • In 1HFY24, WOR’s revenue increased by 13% to AUD 6,081 million
  • Grill (John Michael) has maximum stake in the firm with a shareholding of 6.51%

Worley Limited (ASX: WOR) offers engineering design and project delivery services, including advisory, reliability support and maintenance services. The services are focused on the chemicals, energy and resource sectors.

In the first half of the financial year 2024 (1HFY24), the company recorded a 13% YoY rise in revenue and other income to AUD 6,081 million and a whopping 296% YoY increase in operating cash flow to AUD 396 million. During the reported period, profit after tax reached AUD 106 million, comparable to loss after tax of AUD 99 million in previous corresponding period.

Top 10 shareholders of WOR

The top 10 shareholders of WOR have around 32.90% of the shareholding in the firm, while the top four have around 21.50% of the shareholding. Grill (John Michael) and T. Rowe Price Associates, Inc. have the highest stake in the company with a shareholding of ~6.51% and ~5.61%, respectively.

Recent business update

Through an ASX update dated 9 August 2024, the company notified that State Street Corporation and subsidiaries had become a substantial shareholder in the firm with 5.12% of voting power, as of 7 August 2024.

On 24 July 2024, the company informed that it secured an engineering services agreement from VPI for the Humber Zero Carbon Capture project, a significant project for the net zero targets of the UK.

The project aims at capturing up to 3.3 million tonnes of CO2 per year. Under the agreement, WOR is expected to offer engineering services for the EPC Development Phase.

Outlook

WOR anticipates aggregated revenue growth in FY24 from new customers and a major project, with the projected underlying EBITDA margin of 7.5% to 8%.

By the end of FY26, WOR targets to generate 75% of its revenue from sustainability-focused initiatives.

In FY25, expected capital priorities are strategic technology investments, maintaining leverage below 2.0x and niche acquisitions. The key focus areas are annual assessment or organic growth opportunities and funding investments with free cash flow.

Share performance of WOR

WOR shares closed at AUD 14.24 apiece on 15 August 2024. In the last one month, WOR’s share price has declined by almost 4.62%, while in the last six months, it has fallen by approximately 8.19%.

52-week high of WOR is AUD 18.130, recorded on 23 August 2023 and 52-week low is AUD 13.870, recorded on 8 August 2024.

WOR Daily Technical Chart, Source: REFINITIV

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 16 August 2024. The reference data in this report has been partly sourced from REFINITIV.