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Worley (ASX:WOR) share price dips lower despite positive news

A dog looks confused and a little sad, indicating a dip in share price movement
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Worley Ltd (ASX: WOR) shares are dipping lower today, despite the company winning a new contract.

During early afternoon trade, the global engineering company’s shares are down 0.5% at $12.74. The Worley share price did reach positive territory earlier on, recording an intraday high of $12.98.

What did Worley announce?

The Worley share price has been see-sawing today after investors appear mixed on the company’s latest release.

In its announcement, Worley advised that it has been awarded a contract from Schering-Plough Animal Health Limited, also known as MSD Animal Health.

MSD Animal Health is a division within the 125-year-old global pharmaceutical company, MSD. The former which provides veterinary services and digital solutions such as identification and monitoring technologies.

Terms of the deal

Under the contract, Worley will deliver procurement and construction services to upgrade the animal vaccine plant in Upper Hutt, New Zealand.

The project is expected to be completed over a 4-year period, in which Worley’s New Zealand team will take charge.

No further details were provided by Worley in terms of revenue generation and any related provisions.

Words from the CEO

Worley CEO Chris Ashton, welcomed the partnership, saying:

As a global professional services company headquartered in Australia, we are excited to be involved in this project with MSD Animal Health in New Zealand. It is a natural extension to the diverse professional and field services we offer to complex chemical and processing industries around the world.

How has the Worley share price performed?

Since its March lows last year, the Worley share price has gradually gained traction to come within sights of its pre-COVID highs.

While this time last year, its shares were hovering around the $16 mark, Worley has been making gains. From November, the company’s shares have risen more than 30%, reflecting positive investor sentiment.

If the Worley share price can climb another 20%, its shares will be where they started in the beginning of 2020.

Based on the current share price, Worley commands a market capitalisation of $6.6 billion.

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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.

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