Worley (ASX:WOR)- CEO, Chris Ashton
CEO, Chris Ashton
Source: Worley
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Worley’s (WOR) latest financial guidance has dealt a blow to its share price, causing the ASX 200-lister to shed 15 per cent of its value in midday trade
  • The engineering giant says booming COVID-19 cases across the globe impacted its bottom line during FY21’s first half
  • As a result, Worley expects to table between $4.4 billion and $4.5 billion in aggregated revenue during the first half
  • Meanwhile, its underlying earnings before interest, taxes and amortisation (EBITA) is projected to land between $200 million and $210 million
  • At the end of FY20’s first half, Worley tabled just shy of $6 billion in revenue and $366 million in underlying EBITA
  • The ASX 200-lister’s interim financial report is due February 23
  • Worley shares are down 15.2 per cent to $9.68

Worley’s (WOR) latest financial guidance has dealt a blow to its share price, causing the ASX 200-lister to shed 15 per cent of its value in midday trade.

The engineering giant says booming COVID-19 cases across the globe impacted its bottom line during FY21’s first half.

As a result, Worley expects to table between $4.4 billion and $4.5 billion in aggregated revenue during the first half, while its underlying earnings before interest, taxes and amortisation (EBITA) is projected to land between $200 million and $210 million.

At the end of FY20’s first half, Worley tabled just shy of $6 billion in revenue and $366 million in underlying EBITA.

Speaking to the results, Worley CEO Chris Ashton said the business was still “winning new work”.

“Although the ongoing impacts of the pandemic are deferring some of our existing projects, we expect they will restart when economic circumstances improve,” he stated today.

“The actions we’ve taken to manage what’s in our control and our pivot to sustainability have provided us with a strong platform to grow the business as COVID-19 related economic circumstances improve and deferred projects restart.”

Despite the interim slump, Worley says it expects projects which have been delayed to restart as “global economic conditions improve.” It also flagged a number of near-term opportunities in the hydrogen, electrification, carbon capture, offshore wind and nuclear markets.

The ASX 200-lister’s interim financial report is due February 23.

Worley shares are down 15.2 per cent to $9.68 at 1:09 pm AEDT. The company has a $5.97 billion market capitalisation.

WOR by the numbers
More From The Market Herald
Fortescue Metals Group (ASX:FMG) - Departing CEO, Elizabeth Gaines

" Fortescue Metals (ASX:FMG) records highest number of half-year shipments

Fortescue Metals (ASX:FMG) records its highest number of shipments for a half year at 93.1 million…
Zip CO (ASX:Z1P) - CEO, Larry Diamond

" Zip Co (ASX:Z1P) confirms potential acquisition of Sezzle (ASX:SZL)

Buy now, pay later company Zip Co (ASX:Z1P) confirms it is looking to buy Sezzle (SZL),…

" Fortescue (ASX:FMG) to buy Williams Advanced Engineering for $310m

Fortescue Metals Group (ASX:FMG) plans to acquire technology and engineering services firm Williams Advanced Engineering (WAE)…

" Northern Star Resources (ASX:NST) spikes on December quarter gold sales

Shares in gold mining big-cap Northern Star Resources (ASX:NST) have risen in early action following the…