The WorleyParsons Limited (ASX: WOR) share price has closed 1.66% higher at $14.72 today after two key ASX updates from the Aussie engineering contractor in the last 24 hours.
Update on the company's Jacobs acquisition
WorleyParsons provided an update on its binding agreement to acquire Jacobs Engineering Group Inc.'s Energy, Chemicals and Resources (ECR) division as announced on 22 October 2018.
WorleyParsons announced that today it received regulatory clearance from the Committee on Foreign Investment in the United States (CFIUS), the equivalent of Australia's Foreign Investment Review Board (FIRB), and has now received all regulatory clearance and approvals required for completion.
The company has now received US HSR antitrust clearance and regulatory approval from the European Commission, the Competition Bureau in Canada and the Competition Commission in South Africa.
The company anticipates the Jacobs ECR acquisition will occur by the end of April 2019 and expects to realise significant upside through cost and revenue synergies following completion.
What else did WorleyParsons announce?
The engineering group was awarded a significant project management contract (PMC) in the United Arab Emirates (UAE) which it announced to the market after yesterday's close.
Borouge, a joint venture (JV) between Abu Dhabi National Oil Company (ADNOC) and Borealis AS, awarded WorleyParsons the PMC for its Ruwais petrochemicals complex in the UAE.
Under the contract, WorleyParsons will provide PMC services to the fourth phase of the petrochemicals complex which will include the world's largest mixed feed cracker with an estimated 1.8 million tonnes per annum of ethylene output. The complex will have a production capacity of 3.3 million tonnes per annum of olefins and aromatics using a variety of feedstocks from ADNOC's refining and gas processing facilities.
Is WorleyParsons in the buy zone?
The WorleyParsons share price has rocketed 27% higher so far this year and recently announced a half-year underlying net profit after tax (NPAT) of $98.4 million, up 25.8% on the prior corresponding period (pcp).
The group's share price plummeted 41.4% in Q4 2018 to close out the year at just $11.42 per share in line with fellow engineering, procurement and construction (EPC) providers Seven Group Holdings Ltd (ASX: SVW) and Emeco Holdings Ltd (ASX: EHL).
Despite the strong start to the year, I'm not sure the 1.59% dividend yield nor the 31.5x P/E multiple exactly screams 'Buy' to me, with these top growth shares looking like smarter investments at present.
