Why are Worley, Auckland Airport shares under watch today?

Summary

  • Worley has secured two wind farm contracts from Pacific Hydro’s subsidiary, Energy Pacific.
  • The share price of Sydney-headquartered firm declined as much as 5.1%.
  • Auckland Airport has affirmed its earnings guidance for FY21.
  • New Zealand’s busiest airport warned a slower-than-anticipated recovery in passenger numbers will impact earnings.

The Australian share market was trading lower on Thursday as growing concerns about the spread of the Delta variant of coronavirus and subsequent lockdowns have dented market sentiment. In line with the benchmark index, S&P/ASX200, engineering solution company Worley and Auckland Airport were trading lower.

While Worley (ASX: WOR) shares declined as much as 5.1% to AU$11.35, Auckland International Airport (ASX: AIA) stock price fell 1.03% to AU$6.69.

Meanwhile, the ASX200 was trading lower by 26.50 points or 0.36% at 7,286.50 at the time of reporting.

Worley secures two wind farm contracts

In an exchange filing, Australian engineering service provider Worley said it has secured two wind farm contracts from Pacific Hydro’s subsidiary, Energy Pacific (Vic) Pty Ltd. The contract is for the operation and maintenance of Pacific Hydro’s wind farms in Victoria, Australia.

Copyright © 2021 Kalkine Media

As per the agreement, Worley will provide full asset management, operations and maintenance services across a fleet of 196 wind turbines and the associated balance of plant with a total generating capacity of 360 MW.

“We are pleased that Pacific Hydro has chosen to continue its long-term relationship with Worley and extend our role in supporting the generation of renewable energy on these wind farms. As a global company headquartered in Australia, we are helping our customers adapt to the world’s changing energy needs through bringing Worley’s global expertise and capability in renewable energy,” said Chris Ashton, Chief Executive Officer of Worley.

The Last Trade || ASX Starts New Fiscal On Weak Note; Ends 0.7% Lower As Virus Worries Persist

The deal for supporting the Yaloak South, Crowlands and Portland Wind Energy Project wind farms is valid for ten years, while the contract for the Yambuk, Codrington and Challicum Hills wind farms is for five years.

Worley said that the services would be executed by its regional Victoria team, while it will remotely monitor the operation of all the wind turbines.

Auckland Airport affirms FY21 Earnings Guidance

Auckland Airport, a major airline hub in New Zealand, has kept its earnings guidance unchanged for 2021, while it cautioned that ongoing uncertainty around international travel might impact passenger numbers and related revenue for the remainder of the calendar year.

Chief executive Adrian Littlewood said the earnings forecast for FY21 is unchanged from the prior guidance with a loss after tax in the range of AU$35-AU$55 million.

Source: Peshkova, Shutterstock.com

Going forward, the leading New Zealand airport expects total retail income for FY22 to be in the range of AU$25 million to AU$35 million, citing that the earnings are likely to be impacted by a slower than previously anticipated recovery in passenger numbers.

The company expects a steady recovery in international passenger numbers and those business lines linked to passenger volumes, including retail and transport, from early in the calendar year 2022.

Littlewood said that the new COVID-19 cases in Australia and the risk posed to a largely unvaccinated population by new strains dent passenger confidence in travel beyond COVID-free destinations.

“Domestic and Cook Islands passenger demand is strong, but international travel numbers remain at historically low levels,” he said.

“Emerging overseas evidence points strongly to widespread vaccination being the path to protecting communities against the virus. Where this is being achieved, it is leading to a strong revival of the aviation sector. In line with this, the international passenger recovery in New Zealand is unlikely to materially change until the vaccination programme rolls out to a significant number of New Zealanders across the next few months,” Littlewood added

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK