Worley posts $106m profit

Engineering firm Worley recorded a net profit after tax of $106m for the first half of the 2024 financial year, up from a $99 million loss during the prior corresponding period.

The positive result for the company was bolstered by $5.6 billion of aggregate revenue, up 22 per cent from the first six months of the 2023 financial year, on the back of solid gains across its professional services division - which made up $3.85 billion of the overall total.

Worley's underlying net profit after tax and amortisation rose by 30 per cent to $188 million, while its statutory NPATA reached $139 million, after losing $63 million during the first half of 2023.

The company said its statutory NPATA figure was impacted by a net exposure write-off relating to its historical dealings in Ecuador, which totalled $58 million. 

"While we have taken the decision to remove the net exposure from our balance sheet, we are still considering the options for further legal proceedings," Worley said. 

Between 2011-2017, the Perth-based company provided a variety of services to Ecuador-based Petroecuador, an entity owned by the state. In 2019, Worley entered into a legal dispute with the South American country, stating it was owed $58 million due to unpaid trade receivables.

On December 22 2023, an international arbitration tribunal dismissed the action, while at the same time, lobbed a series of corruption-based allegations at the company, which Worley profusely denies. 

“We recognize our responsibilities to shareholders, customers, our people and suppliers, as well as to the communities in which we operate," Worley's chief executive officer Chris Ashton said.

"Our governance and operational controls reinforce a culture of acting lawfully, ethically and responsibly and we remain focused on delivering our ESG business commitments.

"Our code of conduct is core to the values that underpin who we are and everything we do, reinforced by annual code of conduct training." 

Worley, which closed trade at $16.10 per share, up 2 per cent, said its board would declare an interim dividend of 25 cents per share - which would be paid on April 3.