Strong resources division growth has helped ASX-listed engineering company Worley lift FY23 revenue 21% year-on-year to A$10.9 billion, while EBITA was up 16% yoy at $635 million.
Worley has energy, chemicals and resources business lines, the latter including mining and metals.
It generated FY23 revenue and EBITA of $2.09b and $170 million compared with $1.28b and $106m, respectively, in FY22. Resources’ 63.4% revenue expansion outpaced energy (16%; $5.19b) and chemicals (10.2%; $3.64b).
Worley’s overall sales were at their second highest level in the past five years, behind $13b-plus in 2020.
“We expect FY2024 aggregated revenue excluding procurement to grow as new and emerging customers and major projects generate further upside,” the company said.
“We also expect procurement volumes to grow further on FY2023. We expect the underlying EBITA margin, excluding the impact of procurement, to be within a range of 7.5-8% in FY2024.”
That compares with 6.5% in FY23.
Worley said its FY23 statutory NPAT of $104m was down on last year’s $243m due to a loss on the sale of its North American turnaround and maintenance business.
“We’re driving margin expansion through effective project delivery, increasing automation and digitalization, and streamlined operations as we continue to expand the value we bring to our customers,” Worley CEO Chris Ashton said.
“We expect margin to expand to 7.5-8% in FY24, supported by higher margins in our factored sales pipeline and backlog.
“We’re well positioned as a scalable business and continue to benefit from our cost savings programs as we grow. We’ve completed our cost savings program, delivering $375m of annualised savings.
“Our factored sales pipeline and backlog indicate the pathway for future growth remains strong. The factored sales pipeline is growing, up 58%, and backlog is up 14% at June 2023 compared to the prior corresponding period.”
Adjusted for the divestment of the North American turnaround and maintenance business, Worley’s backlog at the end of June, 2023, was $14.1b.
The company’s share price is up more than 6.6% in the past month at $18.11, capitalising it at about $9.5b.