Shares in Worley (ASX: WOR) were down around 1.5% at the open after the ASX100 engineering and advisory services company pre-empted tomorrow’s strategic update on plans to streamline its global operations by announcing two portfolio adjustments, effective 1 July 2025 within the group executive team.
To help capitalise on significant growth opportunities in major energy, chemicals, and resources (ECR) projects, Worley told investors it had created two new divisions – major projects and programs, and global operations.
These adjustments are expected to expand the group’s work “across the full ECR value chain, from early specialist consulting to full project implementation”.
Mark Trueman, the current president of Worley’s American business, will be appointed president of major projects and programs, and will be responsible for “the pursuit, winning and delivery of some of Worley’s biggest projects and customer programs."
These include projects like Venture Global’s CP2 LNG plant in Louisiana, Ma’aden’s Phosphate 3 Phase 1 Project in the Kingdom of Saudi Arabia and programs such as Oxy’s Direct Air Capture program.
Meanwhile, president for EMEA and APAC Mark Brantley will head up the new global operations arm and will oversee all other Worley operations excluding major projects and programs and technology solutions.
Worley CEO Chris Ashton expects the group’s established Global Integrated Delivery centres in India and Bogota, plus digital initiatives to utilise generative Artificial Intelligence, to play increasing roles, integrated into all relevant aspects of project delivery.
“Global Operations brings the opportunity to streamline and strengthen our support for customers across the depth and breadth of their needs wherever they are in the world,” said Ashton.
In a separate announcement today, Worley also updated on its ongoing on-market buy-back program.
As of May 19, 2025, the company has repurchased 8,687,352 ordinary fully paid securities, including 196,347 bought back the previous day.
This buy-back initiative is part of Worley’s strategy to manage its capital structure and potentially enhance shareholders' value.
Worley reported a 55.4% rise in first-half net profit after a significant write-down period in the preceding year.
Worley has a market cap of $6.7 billion making it an ASX100 stock; the share price is down 13% in one year, down 6% year-to-date and up 7.55% in the last month.
The stock is currently trading 25% below its 52-week high of $17.46 and 74% below its all-time high of $48.92.
The stock’s shares appear to be in a strong near-term rally within a longer-term bearish trend.
With a Buy recommendation and share price target of $18, Goldman Sachs believes Worley is well positioned to participate in the transition from fossil fuels to a more sustainable energy mix.
“We expect the energy transition segment to gain increased investor attention as Covid-19 related impacts fade and the company continues to highlight the strong growth potential of the business via increased disclosure,” the broker said in a late February update.
Investors will be looking for positive signs from tomorrow’s major update to move the price forward.
Look out for strong signals from management that earnings performance isn’t about to tail off, which could explain why P/E is a modest 17.8%.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.