The Worley Ltd (ASX: WOR) share price is sliding in early afternoon trade despite announcing a new contract award.
At the time of writing, the global engineering company's shares are fetching for $10.49, down 0.66%.
Lets take a closer look at what Worley updated to the ASX today.
Details of the contract
Investors appear unfazed by the company's positive announcement, sending Worley shares lower.
According to its release, Worley advised it has entered into an engineering, procurement and construction (EPC) contract by Celanese Ltd.
Founded in 1918, Celanese is an international chemical and specialty materials company that engineers and manufactures a variety of products. This includes acetyl intermediates such as chemical, paint and coatings, construction, and adhesive industries for polymerisation.
Furthermore, the group is also heavily invested in important sectors such as advanced engineered materials, consumer specialties, industrial specialties, and advanced fuel technology.
Under the agreement, Worley will build Celanese a new acetic acid unit in Clear Lake, Texas, United States. Worley will provide EPC services from its new fabrication facility in Houston, also in Texas.
In addition, Worley will deliver fabrication modules from its previous front-end engineering design (FEED) contract for the acetic acid unit.
Once built, the new acetic acid unit is expected to provide Celanese with production flexibility, improved cost structure and increased production capability.
Worley CEO, Chris Ashton commented:
As a global company headquartered in Australia, this project aligns with our strategic focus on supporting our customers in the global chemicals sector. We look forward to continuing to support Celanese's global acetic acid production strategy and continue our longstanding relationship.
Worley share price summary
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 lifted by more than 20%. However, the company's year-to-date performance has sagged around 10%. Worley shares took a hit in late January after providing a business update on the impact of COVID-19.
Worley has a market capitalisation of almost $5.4 billion at today's prices, with just over 522 million shares outstanding.
