Worley (ASX:WOR) share price slides despite new contract

The Worley Ltd (ASX: WOR) share price is in negative territory today despite a new contract award. Here are the details.

| More on:
falling infrastructure asx share price represented by disheartened looking builder on work site

Image source: Getty Images

The Worley Ltd (ASX: WOR) share price is in negative territory during mid-morning trade today despite news of a contract award.

At the time of writing, the global engineering company’s shares are fetching $10.75 apiece, a decline of 1.1%.

What did Worley announce?

Investors appear unfazed by the company’s latest contract win, sending Worley shares into the red.

In this morning’s release, Worley advised it has been awarded a services agreement by CITGO Refining and Chemicals Company L.P.

Under the contract, Worley will provide maintenance, turnaround and sustaining capital services to CITGO’s refineries in the United States.

Situated in Lake Charles, Louisiana and Corpus Christi, Texas, both facilities will see roughly 600 people perform upgrade works. Worley noted that the contractors to be used have previous experience at the sites, providing a seamless delivery of its services.

The contract will run for 5 years and will be managed by Worley’s US field services team.

Worley CEO Chris Ashton welcomed the new deal, saying:

As a global professional services company with an extensive track record of sustaining and optimising refineries globally, we are pleased that CITGO has engaged Worley for services to its Louisiana and Texas facilities.

We look forward to supporting CITGO to deliver on its operational and production targets by providing sustainable and reliable site operations at these refineries.

About the Worley share price

Worley, a leading global engineering company, provides design and project delivery services, including maintenance, reliability support services, and advisory services. The business operates in the energy, chemical and resources sectors.

Over the past 12 months, the Worley share price has gained close to 30% but fallen around 6% year-to-date. The company’s shares took a hit at the start of February after it provided a business update on the impact of COVID-19.

Worley has a market capitalisation of almost $5.6 billion at today’s prices, with just over 522 million shares outstanding.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

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.

More on Energy Shares