The Worley Ltd (ASX: WOR) share price is on the move today following yesterday's positive announcement by the company.
During early afternoon trade, Worley shares are up a sizeable 10.2% to $11.56 apiece.
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What did Worley update the ASX with?
According to its update yesterday, the industrial engineering provider advised it has been awarded a services contract by multinational oil and gas company Shell.
This will see Worley support the development of a low-carbon fuels facility at the Shell Energy and Chemicals Park Rotterdam in The Netherlands.
Once built, the plant will be able to produce around 820,000 tonnes of low-carbon fuels every year. It is expected to be a key supplier of sustainable aviation fuel (SAF) and renewable diesel from waste products.
Renewable diesel alone can reduce 2.8 million tonnes of CO2 emissions each year. This is the equivalent of taking more than one million European cars off the roads. The facility will also help increase SAF production which is critical should the aviation industry also cut carbon emissions.
Worley prides itself on being a part of sustainable projects. Under its services contract, the company will provide detailed design and procurement services for the facility. This follows an ongoing partnership between both companies involving other projects.
The services contract will be managed by Worley's offices in The Hague with further support from the company's Global Integrated Delivery team in India.
Worley CEO Chris Ashton commented:
We are long-standing partners of Shell and this contract award further consolidates our global relationship. We value Shell's continued trust in us to deliver this significant project, which will help Shell meet its own target of becoming a net-zero emissions energy business by 2050.
It seems the Worley share price has also accelerated on the back of a positive broker note by Swiss investment firm UBS.
The agency raised its price target for Worley shares by 13% to $13.20. Based on the price, this implies an upside of almost 15%.
Worley share price summary
It has been a rollercoaster 12 months for Worley shares, up 10% for the period but flat in 2021.
On valuation grounds, Worley presides a market capitalisation of roughly $5.96 billion and has approximately 523 million shares on issue.
