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.