The Worley Ltd (ASX: WOR) share price is up slightly today on news the engineering company has been awarded a new contract in The Netherlands.
At the time of writing, shares in the company were trading at $11.18, up 0.72%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.46%.
Let's take a closer look at what might be affecting the Worley share price.
What did Worley announce today?
In today's release, Worley advised that SABIC Plastic Energy Advanced Recycling BV – a joint venture between Saudi company SABIC and Plastic Energy – has granted it a services contract for a new recycling plant in Geleen, The Netherlands.
The plant will convert plastic waste into recycled oils, called TACOIL. SABIC will then use the TACOIL as "an alternative feedstock to manufacture plastic…"
Under the 2-year contract, Worley will be responsible for engineering, procurement, and construction management services. The execution will fall on the Worley UK and The Netherlands offices with support from the team in India. The Group did not disclose the value of the contract.
Management commentary
Speaking on today's announcement, Worley CEO Chris Ashton said:
We are excited to build our relationship with SABIC and Plastic Energy and help transform the global use of waste plastics and advance the circular economy.
As a global professional services company headquartered in Australia, this project is an example of Worley's strategic focus on sustainability and delivering a more sustainable world.
Today's news follows a similar announcement earlier this month in which Worley advised it had extended its contract with INEOS O&P UK for ongoing maintenance and upgrades of its Grangemouth site.
Worley share price snapshot
The Worley share price was trading at $5.11 12 months ago. In percentage terms, today's valuation represents a 119.37% gain since then.
The share price, however, has still not fully recovered to its pre-coronavirus levels. On 15 January 2020, shares in the company were trading for $16.10, representing a 30.37% decline in value.
Worley has a market capitalisation of $5.9 billion.
