The Worley Ltd (ASX: WOR) share price is edging higher today. This comes after the company announced that it has won a contract for its Heartland Petrochemical Complex.
At the time of writing, the Worley share price is slightly higher — up 0.4% to $12.58.
Quick take on Worley
A leading global engineering company, Worley provides design and project delivery services, including maintenance, reliability support services and advisory services. The business operates in the energy, chemical and resources sector.
What is driving the Worley share price higher?
The Worley share price is picking up steam as investors digest the latest news from the company.
According to the release, Inter Pipeline awarded Worley with a master site services and supply contract for its Heartland Petrochemical Complex. Located in Alberta, Canada, the facility will start using locally acquired natural gas (propane) in converting up to 525,000 tonnes of polypropylene per year through propane dehydrogenation.
Polypropylene, a durable and heat-resistant and versatile plastic, is used in almost all modern industries. Examples include protection against corrosive chemicals in packaging, used to make lunch boxes or prescription bottles, car parts and accessories, as well as many more.
Under the agreement, Worley will provide an array of services at the newly constructed complex. This includes commissioning support, direct hire maintenance, small capital construction, turnaround, engineering and consulting expertise.
Worley's Canadian team will manage the operations, backed by the company's global integrated delivery team. The contract term is valid for a period of 3 years.
CEO commentary
Worley CEO Mr Chris Ashton welcomed the agreement, saying:
We are delighted that Inter Pipeline has chosen Worley to provide services for their Heartland Petrochemical Complex in Canada. The contract compliments Inter Pipeline's commitment to sustainable practices and operational excellence and Worley's strategic focus on sustainability and delivering a more sustainable world.
Worley share price snapshot
Moving on an upwards trajectory, the Worley share price is 171% higher than its $4.63 low reached in March 2020. Although, when looking at a 1-year return, the company's shares are down 21%.
On current prices, Worley has a market capitalisation of $6.5 billion and a price-to-earnings (P/E) ratio of 38.2.
