The Worley Ltd (ASX: WOR) share price is climbing higher in morning trade. At the time of writing, the Worley share price is up 2%, trading at $10.73.
Below we take a look at the global engineering company’s investor day announcement, released this morning.
What did Worley report?
Worley’s share price is moving higher today. This positive movement comes after the company reported that it is on track to deliver improved performance for the second half of the 2021 financial year.
“Our actions have set us up for the future,” Worley reported. Additionally, the company states that its performance has been in line with expectations as the company accelerates its strategic transformation.
The company said its backlog has increased by $600 million to $14.1 billion, up from $13.5 billion in the first half of the financial year.
Worley said it is below its target gearing ratio of 25–35%, reporting a strong cash result. The company’s reduced cost base is part of a permanent structural change. It delivered an annualised ECR cost synergy target of $190 million as at April 2021. Furthermore, Worley reported that it’s “on track to deliver annualised operational savings target of $350 million by June 2022”.
The company cited there have been minimal project cancellations, while its global sales pipeline is increasing.
Worley is also continuing to increase its strong focus on environmental, social, and corporate governance (ESG) issues. Sustainability is already a growing part of its business, which accounted for 29% of aggregated revenue at H1 FY21. Additionally, the company stated that it has more favourable gross margins.
Sustainability opportunities represent 45% of its global factored sales pipeline.
“Our biggest role is supporting our customers on their sustainability journeys,” Worley said, also noting that it is a top 20 ASX performer on ESG disclosure.
Pointing to the size of the potential market, the company estimated the world will need to invest more than US$1 trillion (AU$1.3 trillion) per year for the next 30 years to reach net-zero by 2050.
Share price snapshot
Over the past 12 months, the Worley share price is up 23%. This is in line with the 23% gains posted by the S&P/ASX 200 Index (ASX: XJO) over that same time.
Year-to-date Worley shares are down 5%.