Worley shares drop despite swing to profit
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The news: Shares in Worley have slipped in early trading on the ASX despite the engineering group swinging to a first-half profit.
The numbers: Net profit for the six months to December 2023 came in at $106 million, compared to a $99 million loss a year ago. Revenue was up 13% to $6.08 billion, and the company will pay an interim dividend of 25 cents a share, unchanged from a year ago.
Despite the robust result, Worley shares during early trading were more than 3% lower at $15.24.
The context: Worley said the improvement in its results was driven by an increase in professional services revenue, mix of projects and rate improvements.
The results included a $58 million writedown related to services previously provided in Ecuador. The company has been in dispute with state-run Petroecuador, which it sued in 2019 over missing payments from contracts.
It agreed to settle a US lawsuit brought by the South American country after an Ecuadorian court found the principals of its subcontractor corrupt, and has paid it a USD6 million claim following an arbitration ruling in Paris. The company said it was still considering options for further legal proceedings.
The source: ASX announcement
