Worley (ASX:WOR) share price continues to fall despite second contract win

The Worley Ltd (ASX: WOR) share price has continued to fall despite announcing a second contract win. We take a closer look at what the company released.

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It has been a disappointing day for Worley Ltd (ASX: WOR) shares, having spent the entire day in the red. This comes despite the company announcing a contract award with Celanese, and now a deal with international fuel supplier, Shell.

During late afternoon trade, the global engineering company’s shares are down 0.47% at $10.51 apiece.

Let’s take a close look at what the company updated the ASX with today.

Second contract win

In its announcement, Worley advised it has won a contract from Shell for a green hydrogen hub in the Netherlands.

This marks an important project for Worley as it supports the development of a new 200-megawatt electrolysis-based hydrogen plant in Rotterdam. Worley prides itself on being a part of sustainable projects, creating cleaner energy for customers around the world.

The new plant will be powered by renewable energy from an offshore windfarm that is currently in development. Once complete, the green hydrogen plant will be one of the largest commercial green hydrogen production facilities in the world.

The green hydrogen hub is expected to be operational by 2023, producing between 50,000 and 60,000 kilograms of green hydrogen each day. Initially, the clean fuel alternative will be used to decarbonise Shell’s nearby refinery in Pernis, and support the heavy transportation industry.

Under the services contract, Worley will provide early engineering services for the green hydrogen plant. This includes integrating with other assets such as offshore wind, pipelines, electrical grids and Shell’s Pernis refinery.

The project will be managed by Worley’s offices in The Hague, Netherlands. Furthermore, ongoing support will derive from the company’s hydrogen subject-matter experts and Global Integrated Delivery team in India.

Comments from the CEO

Worley CEO, Chris Ashton welcomed the deal with Shell, saying:

As an Australian company operating globally, we are pleased to be working with Shell on this first-of-its- kind project. We look forward to supporting Shell’s strategy to be a provider of net-zero emissions energy products and this project is an example of how Worley can help our customers achieve their goals and own purpose of delivering a more sustainable world.

Worley share price update

Regardless of today’s dips, Worley shares are still more than 20% higher from this time last year.

The company is ranked 93rd in terms of the largest market capitalisation on the ASX, with $5.4 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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