The Worley Ltd (ASX: WOR) share price has risen by 2.9% so far today as the S&P/ASX 200 Index (INDEXASX: XJO) is back in black. This comes on the back of an ASX release from Worley earlier today, announcing it has been awarded a services contract in the Caspian Sea.
Worley works in the engineering, procurement and construction industries and offers a variety of consulting and advisory services to a range of sectors including hydrocarbons, mineral, metals, chemicals and infrastructure.
Details of the new services contract
Late this morning, Worley released news it has been awarded a contract by Azerbaijan International Operating Co. The contract relates to a gas lift project that encompasses engineering, procurement and construction services.
Under the contract, Worley will provide these services to support production operations on the Chirag platform, located in the Caspian Sea. Worley added in its announcement that the project scope will encompass new gas lift flowlines as well as production manifolds.
The services will be jointly executed by both Worley’s Aberdeen and Baku locations. The strategic advantage in choosing both of these locations, the company explained, is that it will combine the offshore engineering expertise possessed by the Aberdeen office with the local operating knowledge and national expertise within its Baku office.
Recap of Worley’s recent financials
In its half-year earnings released towards the end of last month, Worley announced that net profit after tax and excluding amortisation (NPATA) increased by 110% to $216 million, reflecting strengthened market conditions.
Additionally, the company reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 126% to $366 million during the half.
Worley is maintaining a strong balance sheet with underlying operating cash flow of $277 million. Meanwhile, the company’s underlying basic earnings per share increased 39% to 41.5 cents and an interim dividend of 25 cents per share was declared.
With regards to market outlook, Worley believes that the growth potential in the markets in which it operates will continue over the next year, driven by its recent ECR acquisition. The company recently reported that the integration of the ECR business is now more or less complete, providing a solid foundation for future growth over the long-term.
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