Why the Worley (ASX:WOR) share price will be on watch today

The Worley Ltd (ASX: WOR) share price will be on watch today following a front-end engineering design contract win. Here’s the details.
The post Why the Worley (ASX:WOR) share price will be on watch today appeared first on The Motley Fool Australia. –

ASX share price on watch represented by man looking through magnifying glass

The Worley Ltd (ASX: WOR) share price will be on watch this morning following the company’s announcement regarding a front-end engineering design (FEED) contract. At the market close yesterday, the Worley share price finished the day 1.2% higher to $10.54.

It will be interesting to watch how the company’s shares perform today as investors digest this morning’s update.

What did Worley announce?

The Worley share price could be on the move today as the company reported its latest contract win.

According to this morning’s release, Worley advised it has been awarded a FEED contract from 1PointFive Inc. This contract is for a direct air capture (DAC) project.

1PointFive Inc. is a partnership created by Oxy Low Carbon Ventures (a subsidiary of Occidental Petroleum Corporation) and Rusheen Capital. The group is focused on implementing low-carbon technologies that offer sustainable business solutions. This is made by utilising Occidental’s leadership in carbon management and carbon dioxide storage with Rusheen’s knowledge of carbon-to-value projects.

Under the deal, Worley will commence work on 1PointFive’s first DAC unit for its DAC facility. This will be constructed in the United States Permian Basin, which is located across western Texas and southeastern New Mexico. Worley stated that it will use its Houston office to lead the project.  Additionally, the project will utilise the support of its Global Integrated Delivery team in India.

The company noted that this will be the first commercial-scale development using Carbon Engineering Ltd’s DAC technology. When fully operational, the DAC unit will remove around 1 million tonnes of carbon dioxide (CO2) from the air each year.

Once the FEED contract has been fulfilled, it is expected that Worley and 1PointFive will form an alliance. Consequently, this will flow onto additional projects in which Worley will provide engineering, procurement and construction work for further DAC’s. Currently, there are three additional DAC projects in the pipeline.

CEO commentary

Worley CEO Chris Ashton welcomed the new deal, saying:

We are delighted to have been awarded the FEED contract and we are looking forward to forming the alliance with 1PointFive. This direct air capture project is a starting point for the deployment of commercial-scale DAC to help companies meet CO2 emission reduction targets and aligns with Worley’s strategic focus of delivering a more sustainable world.

About the Worley share price

The Worley share price has fallen more than 24% over the past 12 months. The company’s shares hit a low of $4.63 cents in March last year, before moving on an upwards trajectory later that month.

Based on the current share price, Worley commands a market capitalisation of around $5.5 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Worley (ASX:WOR) share price will be on watch today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!