Here’s why the Worley (ASX:WOR) share price whirled lower today

The industrial engineering solutions company’s share price finished the day in the red.

| More on:
A female construction project manager in a hi vis vest and hard hat considers progress on a chart on the wall.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in industrial engineering solutions company Worley Ltd (ASX: WOR) edged 0.42% lower today as investors digested an investor presentation released by the company.

In its presentation, the company gave a broad level overview of its situation, its strategy and the total addressable market (TAM) it intends to position itself in.

Alas, here are some of the takeouts from Worley’s investor presentation today.

What did Worley present today?

In the presentation released to investors earlier, Worley covered its strategy moving forward into FY22 and beyond. The company detailed several of its growth areas and gave a high-level view of how it intends to get there.

For instance, Worley highlighted that it is partnering with Shell to produce sustainable aviation fuel and renewable diesel after Shell awarded the company a “significant low-carbon fuels services contract in The Netherlands”.

The facility is expected to be one of the biggest of its kind in Europe and will produce 820,000 tonnes of sustainable aviation fuel (SAF) and renewable diesel every year, Worley says.

With respect to its existing asset base, it intends on adapting assets by exploring solutions such as extending, repurposing, or decommissioning, plus will focus on sustainable solutions to improve efficiency.

Worley states the “foundation for growth” in this domain is built on approximately 200 projects in the “FY22 pipeline in adaptation, asset life management and systemic efficiency”.

The company also gave a broad overview of the Direct air capture (DAC) to fuels project. This venture is expected to be the first commercial scale project of its kind and is anticipated to produce “up to 100 million litres of ultra low carbon fuel annually”.

Aside from this, Worley also detailed its role at the Hu’u Project – a large high-grade copper and gold ore body in Indonesia. The site is owned by Vale S.A. and PT Aneka Tambang but is being studied by PT Sumbawa Timur Mining.

Worley has been appointed as the mining study manager with additional responsibility for reporting and estimating all contributors to the study.

Throughout the presentation – which was light on financials – Worley reiterated that its purpose was in “delivering a more sustainable world” whilst its ambition is to be “recognised globally as the leader in sustainability solutions”.

Worley share price snapshot

It’s been a horrendous year for Worley shareholders who are swimming in a sea of red across all time frames. In the past 12 months, the Worley share price has slipped over 27% after losing more than 17% this year to date.

In the past month alone, it has fallen over 12% and is also down 3% for the week. Needless to say, the Worley share price has lagged the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 10% in the last year.

The author has no positions 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.

More on Energy Shares

Santos share price worker in front of oil mine puts thumbs up
Energy Shares

Why is the Woodside share price having such a strong start to the week?

The Woodside share price is rebounding alongside oil prices.

Read more »

A happy woman flies with arms outstretched on her boyfriend's back on the beach at dusk.
Energy Shares

Beach Energy share price climbs on BP deal

Beach Energy shares are defying the broader market sell off on the ASX today.

Read more »

A man looks frustrated with head on hand as he fills up car at service station.
Energy Shares

Sick of high petrol prices? Then buy this ASX share: analyst

Is it painful paying $2-something at the fuel bowser? Stock investors can get some of that money back by doing…

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

Why is the Woodside share price in a slump on Friday?

The Woodside share price is down alongside other ASX energy shares today. Here's why.

Read more »

A woman holds her finger to the side of her lips in contemplation as she looks upwards to an array of graphic images of light bulbs above her head, one of which is on and glowing.
Energy Shares

Why was the AGL share price undercooked in July?

The AGL share price underperformed last month despite the company's silence.

Read more »

A miner stands in front oh an excavator at a mine site
Share Gainers

Why did the Paladin Energy share price rocket 28% in July?

What happened to Paladin Energy shares last month?

Read more »

A young boy flexes his big strong muscles at the beach.
Energy Shares

How is the Beach Energy share price managing to hang tough despite falling oil prices?

Beach Energy extends gains today.

Read more »

Group of children dressed in green hold up a globe relating to climate change.
Energy Shares

‘Massive untapped demand’: The $3 trillion opportunity ASX 200 energy shares could be missing

Deakin estimates that Islamic finance is almost a $3 trillion global industry.

Read more »