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MM thoughts on Worley Parsons (WOR)

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MM thoughts on Worley Parsons (WOR)

Hi James, What are your views on (WOR), they have a good order backlog for next year but suffering staff shortages? The decommissioning of the Oil Wells in Bass Straight should bring strong EPSG in the future - Richard

Answer

Hi Richard,

WOR are experiencing the same staff shortages as many industries across Australia,  we believe wages growth is inevitable into 2022 which will be a major contributing factor to our reflation outlook over the coming year (s). It’s actually one of the key themes that was obvious in company meetings during results – wages are going up, particularly in WA  due to their hard border closures.

Engineering services business WOR has endured a really tough decade post GFC but it currently looks good from a risk / reward perspective, but note it’s an aggressive investment in our opinion – obviously the 4.75% unfranked yield is attractive in a today low rate environment.

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Worley Parsons (WOR)
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