• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Worley Share Price: Delivering a More Sustainable World (ASX:WOR)

Like 0

By Lachlann Tierney, Wednesday, 02 June 2021

Worley Ltd’s [ASX:WOR] share price were up as much as 6.2% in early trade before retracing somewhat to exchange hands for $10.92 per share at the time of writing...

The Worley Ltd [ASX:WOR] share price is up 4.2% today after releasing an investor day presentation.

Worley Ltd’s [ASX:WOR] share price were up as much as 6.2% in early trade before retracing somewhat to exchange hands for $10.92 per share at the time of writing.

Despite today’s rise, the industrial engineering firm has underperformed the ASX 200 benchmark, with Worley’s share price down 5% year-to-date.

ASX WOR - Worley Share Price ChartSource: TradingView.com

WOR on track for improved H2 FY21

Worley, who provides engineering design and project delivery services to energy, chemicals, and resources sectors, announced today it remains on track to deliver an improved H2 FY21 performance.

The investor presentation highlighted the company’s sustainability focus.

One of Worley’s key messages today was that sustainability is ‘already a growing part of our business with more favourable gross margins’.

This is corroborated by yesterday’s announcement that Shell awarded Worley a services contract to assist in developing a 200-megawatt electrolysis-based hydrogen plant in Rotterdam.

Worley is contracted to provide early engineering services for the plant, which will be powered by renewable energy.

Once complete, the plant is set to become one of the largest commercial green hydrogen production facilities in the world.

In Worley’s view, these contracts provide a ‘higher rate of future growth’, with WOR’s traditional business still expected to form an ‘important’ part of its future.

Worley’s sustainability push

The company’s investor presentation reported that sustainability opportunities have a ‘more favourable gross margin’ compared to Worley’s other services.

Elaborating, WOR highlighted that in H1 FY21 it delivered $1.2 billion in sustainability revenue at better margins.

The company said the better margin is ‘mostly due to the type of work performed’.

For reference, Worley reported a total underlying EBITDA margin on aggregated revenue of 4.6% in H1 FY21, down from 6.1% in H1 FY20.

Worley outlined four sustainability ‘pathways’ it will target to boost revenues and gross margins: decarbonisation, resource stewardship, asset sustainability, and environment and society.

In terms of its decarbonisation pathway, WOR stressed that it has already worked on over 700 wind power projects, 350 solar power projects, 70 hydrogen projects, 220 nuclear projects and 220 distributed energy, EV and storage projects.

WOR’s decarbonisation segment stands to benefit from large expected investment inflows.

Citing IEA’s statistics, Worley suggested that decarbonisation investment needed to reach net-zero by 2050 would be more than US$1 trillion per year.Sustainability PathwaysSource: company presentation

Worley aims for its sustainability pathways to be the ‘most significant part of our business’.

WOR Share Price ASX outlook

Worley said it’s on track for an improved second-half performance in FY21.

The company also reported its operational savings program is on track for a $350 million run rate by June 2022.

WOR’s order backlog stands at $14.1 billion, which is up from $13.5 billion in 1H FY21.

Worley also said its global sales pipeline is increasing and that the company is ‘pleased with the level of work we are winning.’

Worley isn’t the only company pivoting to sustainability.

Governments and private interests the world over are converging on sustainable practices and renewable energy.

So if you’re wondering exactly what this trend means for savvy private investors, I recommend reading our free report on the renewables revolution.

There, our energy expert Selva Freigedo reveals three ways you can capitalise on the $95 trillion renewable energy boom.

Regards,

Lachlann Tierney,

For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Lachlann Tierney

Lachlann’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • Tick, tock: there’s a boom brewing in one sector…
    By Callum Newman

    All the old hands say you’re supposed to buy resources when they’re down in the dumps. That’s the theory. It’s the timing that’s the bitch. Here’s some help with that…

  • Buy oil when there’s peace in the streets
    By Nick Hubble

    While stocks have recovered from the tariff tantrum, the oil price remains in the doldrums. And that means investors can still join the relief rally at a discount.

  • Vicuña: The Greatest Mineral Discovery of Our Lifetime
    By James Cooper

    James Cooper returns to his geologist roots, revealing the industry’s most critical exploration discovery made in decades…The Vicuña District in Argentina.

Primary Sidebar

Latest Articles

  • Tick, tock: there’s a boom brewing in one sector…
  • Buy oil when there’s peace in the streets
  • Vicuña: The Greatest Mineral Discovery of Our Lifetime
  • “Green gold”…primed for a comeback!
  • Don’t Get Swept Up By the Herd: Bulls & Bears in an Age of Social Media

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988