It is Raining Contracts for Energy Major WorleyParsons Limited

In April 2019, WorleyParsons Limited (ASX: WOR) and Jacobs Engineering Group Inc.’s Energy, Chemicals and Resources division merged to form a new brand – Worley. These two are the world leaders in engineering, technical and professional services.

The company provides expertise in engineering, construction and procurement . It also caters to the consulting and offers advisory services. Worley now deems to be a world-class hydrocarbons service provider, Number one chemicals service provider and a global lead in mining, minerals and metals. The aim is to meet customer needs and create optimum shareholder value.

Today, 30th May 2019, Worley announced the exchange that its 100% owned subsidiary Chemetics Inc has been issued a contract by Intecsa Industrial S.A. As part of the contract, Worley would licence and supply Chemetics’ proprietary technology equipment for two future sulfuric acid plants in Morocco. CES-ALPHA® system, acid coolers, boiler feed water heater, converter, gas-gas heat exchangers, and SARMET® acid piping and towers.

Furthermore, yesterday (on 29th May 2019) the company announced that it was granted the services contract by Thai Oil Public Company Limited. This was towards Thaioil’s oil refinery in Thailand. As per the agreement, WOR would deliver its engineering, construction management and procurement services towards the oil refinery. Andrew Wood, Chief Executive Officer of Worley, stated the company was glad to continue its longstanding association with Thaioil to aid them in meeting the energy requisites across Thailand.

Thaioil is amongst the largest refiners in Thailand. It is operational as a complex refinery. It uses efficient processing technologies to produce petroleum products for Thailand.

On 27th May 2019, the company appointed Doctor Juan José Suárez Coppel as an Independent Non-Executive Director to its Board of Directors. Apart from the Board, he would be part of the Nominations Committee and the Audit & Risk Committee.

The company recently finalised the purchase of the Chemicals ,Energy and Resources division of Jacobs Engineering Group Inc.’s. The agreement was filed on 22nd October 2019 and on 26th April, the company announced that the consideration was paid. The total worth of the acquisition was $3.2 billion. The newly merged business would provide employment for around 57.6k people spread across 51 countries.

The operating structure would have four business units which would be immediately effective after the completion. These were announced earlier in February this year. They four business units would be:

  • Advisian
  • Energy-related and Chemical Services.
  • Mining, Minerals & Metals Services.
  • Main Projects and Integrated Solutions.

The company forecasts Cost synergies of almost A$130 million at a cost of A$160 million to be delivered in two years.

Besides this, the company name would change to Worley Limited, post shareholder approval at the AGM, due to be held in October 2019.

Share Price Information:

The market capitalisation of the company is A$7.39 billion. The 52-week high and low of the stock is A$20.02 and A$10.72, respectively. The stock is trading at A$13.540 on ASX (as at AEST: 1:05 PM, 30th May 2019), down by 4.8%. In the last six months, the stock has delivered a return of 7.88%, and the YTD return stands at a better position at 25.49%.


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