Insights

Worley (ASX:WOR) share price edges lower despite contract wins

The global engineering company’s shares are heading south today…
The post Worley (ASX:WOR) share price edges lower despite contract wins appeared first on The Motley Fool Australia. –

Worley Ltd (ASX: WOR) shares can’t catch a break today despite announcing two new contract awards.

At the time of writing, the Worley share price is down 2.77% to $11.57.

Worley secures renewable fuels contract

According to its first release, Worley advised it has been awarded a services contract with engineering company, Koch Project Solutions.

The deal will see Worley provide front-end engineering and design (FEED) services for a new renewable fuels plant in California. Once completed, the plant will be owned and operated by NASDAQ-listed company, Aemetis Inc (NASDAQ: AMTX).

The renewable jet and diesel project will combine low-carbon feedstocks with renewable hydrogen from orchard and forest wood waste to produce low-carbon fuels. It is estimated that at capacity, the plant will make 170 million litres per year of renewable jet and diesel fuel. This fuel can be used in aeroplanes, trucks and ships without requiring any engine modifications.

The project will be managed by Worley’s United States West offices. Furthermore, ongoing support will come from the company’s Global Integrated Delivery team in India.

It is expected that the FEED phase will be completed towards the backend of the calendar year.

Commenting on the contract win, Worley CEO Chris Ashton said:

We are pleased that Koch Project Solutions and Aemetis have selected Worley to deliver this significant project. The Carbon Zero 1 project aligns with our focus to support our customers on their energy transition, while remaining committed to our purpose of delivering a more sustainable world.

Worley wins second contract for the day

Adding to the positive release, Worley further announced it has won a services contract with Canadian company, Parkland Refining BC.

Under the contract, Worley will provide consulting, engineering, procurement, construction management and commissioning services to support works at Burnaby refinery. Worley noted that this is on top of the existing relationship of undertaking capital work at the facility.

The Burnaby refinery converts crude and synthetic oil into gasoline, diesel, jet fuels, asphalts, heating fuels, heavy fuel oils, butanes, and propane.

The term of the contract will last for a period of 5 years.

The services will be led by Worley’s Calgary office with support from its global consulting business, Advisian, delivering technical expertise. Worley’s gas treating and sulphur technology business, Comprimo will provide the technology and design.

Mr Ashton went on to further comment:

We are pleased to continue supporting Parkland at its Burnaby refinery. We will combine our long-term presence at the refinery over the last two decades with our technical expertise to deliver efficient and reliable operations, while remaining committed to delivering a more sustainable world.

Worley share price summary

Regardless of today’s fall, Worley shares are still up more than 25% from this time last year.

The company is ranked 84th in terms of the largest market capitalisation on the ASX, with $6 billion.

The post Worley (ASX:WOR) share price edges lower despite contract wins appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 Weekly Wrap: ASX hits 7,300 points for the first time

These were the best-performing ASX 200 shares last week

These 3 shares were the biggest gainers of the ASX 200 this week

Morgans picks this ASX share to buy for the oil recovery trade

Why Dubber, Megaport, Sezzle, & Worley shares are storming higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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!