Why the Worley (ASX:WOR) share price is edging higher today

The company’s shares are breaking its negative trend today.

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The Worley Ltd (ASX: WOR) share price has opened up higher this morning following the announcement of a contract award.

At the time of writing, the engineering group’s shares are up 0.71% to $11.33. In comparison, the S&P/ASX 200 Index (ASX: XJO) is trading at 7,368 points – up 0.60%.

Let’s take a closer look at what the company released in today’s early morning market news.

Worley secures contract in Egypt

Worley shares are on the move today after the company provided investors with a positive release.

In a statement to the ASX, Worley advised it has secured a services contract with Red Sea National Refining and Petrochemicals Company (Red Sea Co).

The deal will see Worley provide project management consultancy services for a greenfield integrated refinery and petrochemicals complex in Egypt. This includes an early front-end engineering design (pre-FEED), and front-end engineering design (FEED). In addition, the company will deliver detailed engineering, procurement and construction (EPC) services.

Located in the Suez Canal Economic Zone, the project will convert around 4 million tonnes of crude oil into refined products and petrochemicals. This includes jet fuel, low sulphur fuel oil, polyethylene (a common plastic), paraxylene, and monoethylene glycol. The last two types of chemical compounds are used for manufacturing PET plastic bottles, x-ray film and polyester fibres.

The project will be managed by Worley’s Egypt and United Kingdom offices. Furthermore, ongoing support will come from the company’s Global Integrated Delivery team in India.

Worley CEO, Chris Ashton touched on the positive update, saying:

As a global professional services company headquartered in Australia, we are pleased that Red Sea Co. has selected Worley to deliver this important project in Egypt. We are committed to delivering a more sustainable world and will use our project management expertise to help develop reliable and efficient operations for this significant complex.

More on the Worley share price

The Worley share price is up by more than 30% over the past 12 months, but relatively flat for 2021 – down 2%. The company’s share price is sitting in the middle of its 52-week range of $7.75 to $14.01.

Worley commands a market capitalisation of roughly $5.87 billion, with approximately 522 million shares on its books.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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