Worley misses estimates, flags 'more moderate' growth in FY25
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The news: Engineering services group Worley reported a 27% rise in underlying profit for the 2024 financial year, but the result fell short of analysts' forecasts.
The numbers: Worley reported underlying NPATA of $416 million, up from $348 million recorded in FY23, but below average estimates of $422 million, according to Visible Alpha data.
Its underlying earnings excluded a one-off $58 million writedown relating to services provided in Ecuador and the associated tax impact.
Underlying EBITA rose 24% year on year to $751 million while aggregated revenue grew 18% to $11.6 billion.
The company declared a final dividend of 25 cents per share, in line with last year but below analysts' forecasts of 26.5 cents.
The context: Worley said the rise in underlying earnings was primarily driven by an increase in the quality of earnings from greater professional services revenue, improved mix of projects and rate improvements.
The company noted that FY25 is expected to deliver "more moderate levels" of growth compared to FY24. It flagged that its backlog is down 2% on the prior year, as new wins and scope increases were offset by other scope reductions and cancellations as customers re-evaluated projects.
What they said: Worley CEO Chris Ashton said: "We achieved our FY2024 result despite headwinds, including delays with Venture Global's CP2 project and scope reductions on Anglo American's Woodsmith project".
"Geopolitical shifts, energy trilemma, cost of capital and project economics are delaying some customer capex decisions in the short term," he said.
The source: ASX announcement
