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Will Worley’s new boss Chris Ashton be able to lead the $13 billion energy juggernaut to a renewable energy future?
Indicators are so far positive with Ashton — a 20-year veteran of the company — stepping up to replace outgoing CEO Andrew Wood on Monday. It comes amidst the company posting a 40 per cent jump in interim net profit to $115 million, thanks to improved market conditions and the benefits of its Ashton-led Jacobs Engineering division buy.
The acquisition has made Worley the largest company of its type. With its tentacles now reaching across the globe, and with his legs barely under the desk, Ashton has reaffirmed his clean energy focus, citing the decline in coal-fired gas and slowing of gas-fired project demand.
His aspirations are in good company with Martin Parkinson — creator of Australia’s first Department of Climate Change in 2007 — also appointed a director of Worley.
And you wouldn’t expect he’ll encounter many headwinds from shareholders still haunted by memories of the three-year oil crash and freshly cashed up from a double interest dividend, courtesy of the acquisition.
But Ashton says focusing on renewables is a challenge that requires balancing the energy requirements of a growing population with the risks of climate change.
“As the largest global engineering and project delivery company in the energy sector, we certainly have a significant role to play,” he told TMH.
“To date, we have been involved in all aspects of the energy transition.
“We have assisted our customers throughout the world by increasing the delivery of electrification and the delinking of energy growth from GDP growth through energy efficiency, fuel switching and renewables.
“Our experience and expertise support industry and governments, both nationally and globally in implementing carbon replacement systems in their decarbonisation initiatives, delivering on community expectations of dealing with climate change.”
But the fact remains a large chunk of the world’s population is still denied access to even the most basic means of energy.
Meanwhile, rising living standards in other parts are driving continued resistance in moving away from fossil fuels.
So, it would be an understatement to say that Ashton has his work cut for him, but the mind boggles over Worley’s new increased capacity to now roll out new projects at higher speed and a lesser cost.
And, unsurprisingly, he quotes impressive renewable stats to-date that reinforces this point.
“We have delivered over 1500 new energy projects globally ranging from over 290 solar projects including the works largest concentrated solar project in Dubai and over 420 onshore and offshore wind projects including Africa’s largest wind farm where we erected 362 turbines in 366 days,” he boasts.
“This project lifted over 800,000 Kenyans out of energy poverty.
“In terms of production-related facilities, we are commencing work on the conversion of a refinery in the US from a crude oil feedstock to an organically derived feedstock, making it a 100% renewable diesel operation.
“In Australia, we are supporting customers in all aspects of the energy transition with major roles in well over $100 billion of energy and resource investment.”
Worley (WOR) is down 1.95 per cent with shares currently trading for $13.58.
