Worley reports 55% growth in HY profit, unveils $500m buyback
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The news: Engineering group Worley reported a 55.4% rise in first-half net profit to $216 million, on the back of a hefty write-down in the prior-year period, as cancelled projects saw its work backlog shrink.
Worley also said it plans to undertake an on-market buyback of up to $500 million next month.
The numbers: Worley declared an interim dividend of 25 cents per share, in line with last year's payout.
Bookings grew to $6.6 million from $6.2 million in the prior corresponding period, but edged down half over half. Its project backlog of $12.7 billion fell from $13.8 billion six months ago.
Last November, Worley CEO Chris Ashton reaffirmed the company's goal of achieving double-digit earnings growth this fiscal year, targeting an operating (EBITDA) margin between 8% and 8.5%.
The context: Ashton said the half-year period presented a "more challenging environment", leading to "more moderated growth".
A higher cost of capital, as well as policy and economic headwinds, are influencing the pace of the energy transition and leading to a small number large project cancellations, he said.
Ashton noted that increased uncertainty has been driven by ongoing geopolitical tensions, global inflation and supply chain challenges that continue to disrupt global markets in Worley's key sectors.
The source: ASX
