ANNUAL REPORT 2023
About this report
Worley Group is committed to implementing the principles
of the Integrated Reporting () Framework
Through this report we disclose our progress in contributing to the
achievement of these UN SDGs.
We continue to improve how we communicate our story about how
we create value, through the ongoing integration of the principles
of integrated reporting in our annual report. The recently released
International Sustainability Standards Board (ISSB) Standards from
the IFRS Foundation provide us with an opportunity to further evolve
our disclosures in the coming years.
Last year, we combined our sustainability content throughout
the Annual Report. This year, we continue on our journey toward
integrated reporting to strengthen our value creation narrative
and provide a holistic view of business performance.
How we define value: Our business value drivers
Last year we introduced our business value drivers as part of
our shift towards alignment with the . These business value
drivers, outlined below, represent the forms of capital that we
commonly depend upon to create value.
Page 22 of this report outlines how our business creates value.
People
HUMAN CAPITAL
Finance
FINANCIAL CAPITAL
Knowledge, technology and data
INTELLECTUAL CAPITAL
Equipment and fabrication
MANUFACTURED CAPITAL
Environment
NATURAL CAPITAL
Communities
SOCIAL AND RELATIONSHIP CAPITAL
Material sustainability issues
Our Annual Report contains disclosures covering all material topics
relevant to the performance of Worley. In this report, you’ll also
find disclosure about our material sustainability issues. We conduct
an annual materiality assessment to identify and prioritize the
sustainability issues most relevant to us and our stakeholders.
In FY2023, our materiality assessment identified that the following
four United Nations Sustainable Devleopment Goals (UN SDGs) are
material to Worley Group, and our stakeholders.
See our materiality assessment (page 20) and our website for
more information.
Report boundary and scope
This report is intended to explain how Worley creates value over
time. It is primarily directed to providers of financial capital but
is also relevant to our broader stakeholder group. We provide
expanded disclosure of our Environmental, Social and Governance
(ESG) performance on our website.
This report covers the period 1 July 2022 to 30 June 2023. It covers
the primary activities of Worley Limited (Company) and the entities
it controlled (Group or consolidated entity) at the end of, or during,
the year ended 30 June 2023. This report also contains Worley
Group’s outlook, targets and objectives for the short, medium and
long term.
Certain disclosures of sustainability performance, such as our
Scope 3 greenhouse gas emissions, extend beyond this reporting
boundary. Our Sustainability Basis of Preparation, available on our
website, outlines any variations to the reporting boundary and
accounting methodology of our sustainability performance.
We have included disclosure of sustainability-related matters
through this report where we consider them to be material to
our business. Our website includes expanded disclosure of our
sustainability performance, including areas where we have a
potential positive or negative impact on economy, environment,
and people, including impacts on human rights.
Reporting frameworks and assurance
This report has been prepared in accordance with the Corporations
Act 2001, Australian Accounting Standards (AAS) and other
authoritative pronouncements of the Australian Accounting
Standards Board (AASB). For our consolidated financial
statements, including independent auditor’s report, see page 97.
This report has also been prepared with reference to the
International Financial Reporting Standard’s Framework,
the Global Reporting Initiative (GRI) 2021 Standards, and the
Task Force on Climate-related Financial Disclosures (TCFD). Our
website includes our complete TCFD disclosures and GRI index.
For information on our verification and assurance approach for
non-financial data (see page 54).
Report governance
This report was approved for release by the Board of Directors
of Worley Group on 23 August 2023. See page 184 for the
Directors’ declaration.
Worley acknowledges and pays respect to the past, present and future Traditional Custodians of Country throughout Australia and extends this
acknowledgement and respect to First Peoples in all countries in which we operate. In Australia, it is Aboriginal and Torres Strait Islander Peoples who have cared
for and sustained this land, its animals, plants and waters for more than 60,000 years. We recognize the continuation and importance of cultural, spiritual and
educational practices of Aboriginal and Torres Strait Islander Peoples. Artwork by Baard Baniol artist Marlie Albert from Broome, Western Australia, for Worley.
22
Overview
Overview
Context & strategy
Operating & financial review
Financial statements
Contents
Overview
2 About this report
4 Our transformation journey
6 Group highlights
8
Chair’s letter
12 CEO’s letter
Context and strategy
18 The world we operate in
20 Material sustainability issues
21 Our purpose, ambition and values
22 How we create value
24 Our strategy
Operating and financial review
43 Operations
51 ESG performance summary
55 Performance
85 Outlook
86 Risk management
Financials
96 Directors' Report
108 Remuneration Report
134 Financial statements
193 Shareholder information
194 Glossary
26 How we define our sustainability-related work
199 Corporate information
30 Sector outlook
View our website for
additional documents
• TCFD report
• GRI index
• 2023 CDP submission
• ESG data book
• Sustainability basis of preparation
• UN SDG table
View our website
Disclaimer
This Annual Report contains forward-looking statements, including statements regarding climate change and other environmental and energy transition scenarios.
While these forward-looking statements reflect the Group’s expectations at the date of this Annual Report, they are not guarantees or predictions of future performance
or outcomes. They involve known and unknown risks and uncertainties, which may cause actual outcomes and developments to differ materially from those expressed in
the statements contained in this Annual Report.
There are also limitations with respect to the scenario analysis which is discussed in this Annual Report, and it is difficult to predict which, if any, of the scenarios might
eventuate. Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate.
The Group cautions readers against reliance on any forward-looking statements or guidance, particularly in light on the long-time horizon which this Annual Report discusses
and the inherent uncertainty in policy, market and technological developments in the future. The Group makes no representation, assurance or guarantee as to the accuracy,
completeness or likelihood of fulfilment of any forward-looking statement, any outcomes expressed or implied in any forward-looking statement or any assumptions on
which a forward-looking statement is based.
Except as required by applicable laws or regulations, the Group does not undertake to publicly update or review any forward-looking statements, whether as a result of new
information or future events.
33
Worley Annual Report 2023 Worley Annual Report 2023 Worley: A global company, headquartered in Australia
We’re a leading global provider of professional project and asset
services in the energy, chemicals and resources sectors.
We’re driven by a common purpose: delivering a more sustainable world.
We’re Australia’s largest exporter of knowledge-based services. We use this position to support our
customers with solutions to the challenges they face. This is how we support sustainable development
and is a consistent theme throughout our Annual Report.
We’re also progressing our own sustainability commitments and strengthening our own ESG performance.
Our commitments are detailed in our ESG performance summary (see page 51).
2018
• WorleyParsons is
a leading service
provider on oil and
gas capital projects
Our
transformation
journey
44
2019
• Transformative
acquisition of the Energy,
Chemicals and Resources
(ECR) division of Jacobs
Engineering, enhancing
earnings diversification
• Launched our ECR
acquisition Cost
Synergies Program
2020
• Launched new purpose and values, linking
culture and strategy: delivering a more
sustainable world
• Commenced transformation strategy focused
on sustainability, digital solutions and new
ways of working
• Set our net-zero Scope 1 and Scope 2
emissions target for 2030
• Completed the successful integration of Jacobs
ECR taking us onto common global platforms
across the business
• Launched our operational cost savings program
Overview Overview
Context & strategy
Operating & financial review
Financial statements
2022
• Established ESG in our remuneration
framework, with 20% weighting for ESG
metrics in our senior leaders’ short-term
incentives business scorecard
• Launched our updated Climate Change
Position Statement, strengthening
our response and actions to address
climate change
2021
• Completed the ECR cost synergies program delivering
$190 million of recurring savings to cost base
• Commenced reporting on revenue from
sustainability-related work1 – $1.3 billion in
H1 FY2021 was 30% of total aggregated revenue
• Established our Company ambition to realize our purpose
• Set a net-zero-by-2050 target for our Scope 3 emissions
• Issued the first sustainability-linked bond for an
Australian company
• Committed to $100 million strategic investment in organic
growth in targeted high-growth areas
1.
2.
Throughout this report we refer to our sustainability-related work.
See page 26 for how we define this.
MSCI Global Industry Classification Standard.
2023
• We’re a leader in delivering high-value solutions
– we have an early-mover advantage in
high-growth sustainability markets
• Sustainability-related work makes up 41% of our
revenue and 77% of our factored sales pipeline
• Completed the operational cost savings program
delivering $375 million of recurring savings to cost
base, delivering a scalable business as we grow
• Sold the North American turnaround and
maintenance business, in line with our
strategic direction
• Increased our ambition for our interim target
to a 65% reduction in net Scope 1 and Scope 2
emissions by FY2025 from an FY2020 baseline
• Strengthened our focus on leadership, culture,
capability and well-being for our people
GICS2 reclassification
in 2023 from Energy
to Industrials
55
Worley Annual Report 2023 Worley Annual Report 2023 Group highlights
Delivering our ambition
Our people
We energize and empower our people to drive sustainable impact
Objectives
Achievements
Key performance indicators
• We foster a safe, inclusive and
• Launched our peer-to-peer recognition
innovative work environment that
inspires our people.
program, Appreciate. Over 32,000
recognitions to date.
• We provide outstanding opportunities to
learn, develop and drive sustainability.
• We attract and retain top talent with
diverse backgrounds.
• Launched our new eLearning platform
in February 2023, with over 26,200
learning modules completed to date.
• Awarded 2022 LinkedIn Best Talent
Acquisition team for companies with
10,000+ employees.
48%
0.03
graduates recruited
were women
Serious Case
Frequency Rate
from 47%
in FY2022
by 0.03
since FY2022
Our portfolio
We are our customers' most trusted partner
Objectives
Achievements
Key performance indicators
• We will accelerate our growth and
aspire to derive 75% of our revenue from
sustainability-related work.
• Underlying EBITA margin (excluding
procurement) of 6.5%, up from 6.4%
at 30 June 2022.
• We will implement new solution-based
models, enabled by data, technology
and automation.
• Sustainability-related aggregated
revenue of $4.5 billion, up from
$3.2 billion at 30 June 2022.
• We will expand the value we bring to
our customers, share in that value and
ensure a higher return on investment.
• Backlog at $14.1 billion, up from
$12.4 billion1 at 30 June 2022.
• Percentage of sustainability-related
factored sales pipeline is 77%, up
from 56% at 30 June 2022.
Our planet
We partner with customers as stewards of a more sustainable world
41%
sustainability-
related aggregated
revenue
from 35%
in FY2022
$1,075m
gross margin
delivered in
sustainability
projects
vs a target of $1b
Objectives
Achievements
Key performance indicators
• We are committed to our own
sustainability – reaching net-zero
Scope 1 and Scope 2 emissions by
20302, Scope 3 by 2050.
• We partner with customers committed
to driving sustainability; together
we decarbonize value chains and
steward resources.
• We are recognized globally for our
leadership in sustainability.
• On track to meet our Scope 1 and
Scope 2 net-zero commitments.
• Dow Jones Sustainability Indices
membership for Australia and APAC.
• Gold EcoVadis sustainability rating.
• Issued second thought leadership
paper with Princeton: Measuring
change in the race to deliver net zero.
85%
of our top
20 customers
by revenue
have net-zero
commitments
14%
Scope 1 and
Scope 2 emissions
reduction from
FY2022
1.
2.
Excludes the divested North American turnaround and maintenance business.
We have an interim target of 65% reduction in net Scope 1 and Scope 2 emissions by FY2025 from an FY2020 baseline.
6
Image taken by Berenice Celery, as part of our Earth Day photo competition
Overview Overview
Context & strategy
Operating & financial review
Financial statements
Financial performance at a glance
$10,928m
Aggregated revenue
$635m
Underlying EBITA
$104m
NPATA
$260m
Cash flow from operations
$m
Aggregated revenue1
EBITA
EBITA margin
Underlying EBITA
Underlying EBITA margin excluding procurement
NPATA
Cash flow from operations2
Basic EPS (cents)
Underlying basic EPS (cents)
Dividends (cents per share)
2019
6,439
308
4.8%
413
7.6%
173
236
36.4
62.2
27.5
20203
11,249
481
4.3%
726
8.8%
239
829
30.3
53.8
50
20213
8,774
319
3.6%
463
6.3%
157
533
15.7
53.0
50
2022
9,065
2023
10,928
449
5.0%
547
6.4%
243
316
32.8
62.8
50
345
3.2%
635
6.5%
104
260
7.0
66.2
50
% change
21%
(23%)
(1.8pp)
16%
0.1pp
(57%)
(18%)
(79%)
5%
–
1.
Aggregated revenue is defined as statutory revenue and other income plus share of revenue from associates, less procurement revenue at nil margin, pass-through
revenue at nil margin and interest income. The Directors believe the disclosure of revenue attributable to associates provides additional information in relation to the
financial performance of the Group.
FY2020 cash flow excludes lease liability payments ($147 million) in accordance with AASB 16 Leases, adopted on 1 July 2019.
FY2020 and FY2021 prior periods have been restated.
2.
3.
4. All figures are statutory unless noted as underlying.
Operational highlights
Operational excellence
Capital management
Transformation
Cost base
• Quality of earnings
• Focus on conversion of
• $100 million organic
• Maintain cost discipline
improvement
profit to cash
investment in our growth
• Utilization targets
• Resource management
• Working capital
management
Achievements
• Utilization above
target (87%+).
• 16% growth in GID hours;
GID headcount up 23%
from FY2022.
• 63 days DSO, remaining
similar as at 30 June 2022
(63.3 days).
• 80% of aggregated
revenue from reimbursable
contract types.
• Capital management
strategy supports
growth plans
Achievements
• Cash conversion of 86.6%1
within our target range.
• Refinanced syndicated
bank facilities, securing
improved terms and pricing.
• Successfully issued second
sustainability-linked bond
for $350 million.
• Maintained leverage
at levels supportive
of future growth (leverage
2.2 times at FY2023).
Achievements
• $1.8+ billion increase in
backlog at FY2023 over
FY2022, from investment
in strategic growth areas
(see page 28).
• Trained over 21,000 people
through growth unit
learning modules.
• Active portfolio
management in line with
our strategic direction -
completed sale of North
American turnaround and
maintenance business.
• Operational leverage
through growth
Achievements
• Delivered annualized
operations savings
of $375 million by
30 June 2023.
• Maintained cost
discipline as the business
scales up to meet market
growth.
1.
Adjusted to include working capital recovery for the 1-month post-completion of the North American turnaround and maintenance business divestment ($43m)
and prepayment of software costs ($25m).
7
Worley Annual Report 2023 Chair’s letter
Growth delivered and
momentum continuing
John Grill AO
Chair and Non-Executive Director
This year, we’ve delivered on our
growth outlook, with momentum
building strongly in the markets
we serve.
With our significant experience in
shaping the global energy transition,
we’re delivering some of the world’s
largest and most innovative assets.
We’re partnering with our customers
to deliver infrastructure and integrated
solutions that drive economic growth
in Australia and around the world.
88
Overview Overview
Context & strategy
Operating & financial review
Financial statements
Throughout the year we’ve seen continued growth in our
end-markets as energy security, climate change and supply chain
constraints drive increased investment in new infrastructure and
technologies across the energy, chemicals and resources sectors.
Central to our success are the over 48,200 people who embody
our purpose of “delivering a more sustainable world” by finding
solutions to our customers’ most complex challenges. In doing so,
they create value not just for our shareholders, but a broad
range of stakeholders across the countries and communities in
which we work.
Our purpose, underpinned by our values, continues to inspire
our team. It drives our commitment to building a culture where
our people can be at their best every day – a culture that values
diversity, equity and inclusion, and is founded on mutual respect
and a deep desire for learning and innovation.
We’ve delivered a strong financial performance in line
with our expectations
In FY2023, we have delivered 21% growth in aggregated revenue
and 16% growth in underlying EBITA. We’ve seen an increase in
our sustainability-related work, which now accounts for 41% of
our aggregated revenue, up from 35% in FY2022. These results
reflect the growing demand for our services and our customers’
confidence in our capabilities as they look to us to develop their
traditional and sustainability-related projects.
Throughout the year we improved our capital management
position. We have good liquidity and access to flexible,
competitively priced debt capital sources. In FY2023 we
issued a new sustainability-linked bond, and we renewed our
syndicated bank facility at an improved corporate margin. We’ve
extended our debt maturity and our long-term strategy includes
having maturities with less concentration by year. Our capital
management strategy is structured around funding our growth
and delivering increased value to our shareholders.
Our cash conversion was 86.6%1 and is within our target range of
85% to 95%. We distributed a dividend of 25 cents per share to our
shareholders.
We’re partnering with our customers to accelerate their
transition to a more sustainable future
In our view, the most significant contribution we can make to
delivering a more sustainable world is helping our customers
navigate their transition to a lower-carbon future.
We’re bridging two worlds as we move towards more sustainable
energy sources while also helping our customers to reduce
emissions from existing assets and become more efficient in their
businesses. In this context, there continues to be much discussion
about the future of traditional energy sources, including gas, and
hard-to-abate sectors. We have an important role to support
our customers in these sectors to decarbonize where possible,
recognizing that they have a role to play as economies balance the
pace of the energy transition with the immediate requirements of
energy security, independence and affordability.
The growth of our sustainability-related work demonstrates how
we’re applying our capabilities and solutions to our customers’
most complex challenges.
We’ve seen several of our world-first sustainability-related
projects progress into engineering, procurement and construction
phases (see page 14). We’re using breakthrough approaches in
supply chain management and modularization, showing how our
equipment and fabrication capability is contributing to a paradigm
shift in delivering critical infrastructure across the world.
We use our global knowledge, technology and data to bring
value to our customers anywhere in the world. This, combined
with our innovative mindset and culture of shared success, is a
key differentiator for us.
“Our business is very different to what it was historically. Our earnings base is diversified
across geographies, sectors and customer spend. We’re unlocking long-term value
from our diversified markets. Our improved performance is in line with the execution
of our strategy.”
Key metrics
21%
aggregated revenue
$10,928 million in FY2023,
from $9,065 million
FY2022
41%
of aggregated revenue
is sustainability-related,
up from 35% at FY2022
16%
underlying EBITA
from FY2022
25c
final dividend paid
1.
Adjusted to include working capital recovery for the 1-month post-completion of the North American turnaround and maintenance business divestment ($43m)
and prepayment of software costs ($25m).
99
Worley Annual Report 2023 Worley Annual Report 2023 Overview
Worley Future Leaders 2022 cohort attending the Inaugural Future Leaders
Forum and Industry Leadership Forum – The Hague, March 2023
We’re committed to our people, the environment and the communities in which we work
We prioritize our environmental, social and governance performance. Our commitment to inclusion and diversity and a culture of equality
and respect is implicit in our values and critical to our future. We’ve increased our ambition on net Scope 1 and Scope 2 emissions to a
65% reduction by FY2025 from an FY2020 baseline, in line with our strategic direction.
We continued making substantial impacts in the communities where our customers operate. This year, we achieved a Phase 2 Progressive
Aboriginal Relations certification under the Canadian Council for Aboriginal Business.
We’ve invested in upskilling our people through development in our sustainability-related growth areas, and our attraction and retention
metrics remain strong.
14%
reduced our Scope
1 and Scope 2
emissions from
FY2022
Embedded
psychosocial
factors into our
Life programs
Commenced
our Respect at
Work program
to further help
prevent bullying
and harassment
(including sexual
harassment)
48%
graduates recruited
were women, up
from 47% in FY2022
20%
weighting for ESG
metrics in our senior
leaders’ short-term
incentives business
score card
1010
Overview
Context & strategy
Operating & financial review
Financial statements
We operate responsibly
Finally, thank you
In October last year, we celebrated 20 years of being listed on the
Australian Securities Exchange. This important milestone provided
an opportunity to reflect on our progress and our contribution to
the social and economic well-being of the communities in which
we operate.
In those 20 years, change has been a constant and is likely
to persist for some time. We are embracing this and using
the knowledge from our past to shape the future, while
following the clear growth trajectory we see as a leader
in sustainability solutions.
We look forward to turning challenges into opportunities,
familiarity into innovation. We’re partnering with our customers,
communities and stakeholders to become the changemakers
the world needs now, to turn our shared ambition of net zero
into a reality.
With this in mind, we’d like to thank you, our shareholders, for
your continued support during this time. We’d also like to extend
our thanks to our directors, leadership team, our customers and
partners, and importantly, our people, who have been instrumental
to our successes.
John Grill AO
Chair and Non-Executive Director
We recognize our responsibilities to shareholders, customers,
our people and suppliers, as well as to the communities in
which we operate.
Our governance and operational controls reinforce a culture
of acting lawfully, ethically and responsibly.
We’ve made significant progress on our ESG commitments
in FY2023.
Our Responsible Business Assessment Standard guides us to
align our portfolio of customers and projects with responsible
business practice.
In October 2022, we issued our second Group Modern Slavery
Statement, which shows our commitment to combating human
rights abuses.
Our Data Protection Office governs compliance of our
cybersecurity program with global data protection requirements,
as specified in Australia, Europe, the US and other jurisdictions in
which we work.
Maintaining and enhancing our reputation for integrity, honesty
and ethical practices is important to the Board and underpins our
future success. We comply with all applicable laws and conduct
our business to the highest standard. We engage with partners
and agents that apply the same high standard. We act when we
become aware of non-compliance with these practices.
Board and Committee Governance
At the end of this financial year, we said farewell to Chris Haynes,
who is retiring after 11 years on the Worley Board. I sincerely thank
Chris for his long and dedicated service.
We welcome Joseph (Joe) Geagea, who joined the Board
from 1 July 2023. Joe previously held the role of Executive
Vice President and senior advisor to the Chairman and CEO of
Chevron Corporation. He also served as Executive Vice President
of Technology, Projects and Services.
In February 2023, Anne Templeman-Jones stepped down as
Chair of the Audit and Risk Committee. She remains a member
of the Audit and Risk Committee and the Nominations Committee.
Effective 22 February 2023, Sharon Warburton has assumed
responsibilities as Chair of the Audit and Risk Committee.
These changes demonstrate our focus on Board succession
and renewal. To support the Board’s succession planning, we
have commenced an external Board review led by independent
consultants. The review is underway and will be completed in this
calendar year.
We have a strong governance program
The Board seeks to ensure the Group meets all safety,
performance and governance standards. It has ultimate authority
over the Group and sees corporate governance as critical to
meeting its objectives. For these reasons, the Board has adopted
appropriate charters, codes and policies and established various
committees to discharge its duties.
1111
Worley Annual Report 2023 Worley Annual Report 2023 CEO’s letter
Unlocking long-term
value across our
diversified markets
Chris Ashton
Chief Executive Officer
We have a clear vision for the
future. Our strategy is delivering
as we move towards our ambition
of deriving 75% of our revenue
from sustainability-related work1
by FY2026.
As a trusted provider of high-value
solutions to our customers, we’re
benefiting from increasing customer
investment in sustainability.
1212
1.
See page 26 for how we define this.
Overview Overview
Context & strategy
Operating & financial review
Financial statements
Since stepping into the role of CEO three years ago, I’ve overseen the transformation
of the company. We’ve strengthened our culture around our purpose of “delivering a
more sustainable world” and set a strategic direction that has established Worley as a
recognized global leader in sustainability solutions. In my view, our pivot to sustainability
has given us an early-mover advantage in providing sustainability solutions for both
existing and emerging customers.
Most importantly, we live our purpose and values. This is what sets
us apart. We want our people to be energized and empowered, and
we’re building a values-inspired culture that amplifies big picture
thinking, is open to possibilities and demonstrates collaboration
and innovation.
We’re facing into an extended period of increased
investment in our sectors
As a leader in the sectors we serve, we have a compelling
value proposition, as we face into what we believe will be a
prolonged upcycle. We maintain leading positions in the traditional
sectors we serve and are growing our natural share of new and
emerging sustainability-related opportunities.
We know that when it comes to achieving net zero, the
investment required is significant. The Financing the
Transition paper,1 released in March by the Energy Transitions
Commission, tells us that “around US$3.5 trillion a year of capital
investment will be needed on average between now and
2050 to build a net-zero global economy.”
Today, global spending has just reached one trillion dollars per
annum. That’s less than a third of what it needs to be.2
The rate of investment continues to accelerate, as governments
look to create the right conditions for our customers to be more
ambitious in their own sustainability goals. For example, the
US Inflation Reduction Act and the EU Green Deal Industrial Plan
have accelerated investment in carbon capture use and storage,
low-carbon hydrogen and battery materials.
We’ve consistently delivered improved performance in line
with our expectations
Over the past two years, we’ve consistently delivered and improved
our performance. Our disciplined approach to delivering our
strategy has led to increased earnings and margin improvement for
FY2023. Our underlying EBITA of $635 million is up 16% compared
to FY2022. Our EBITA margin excluding procurement has improved
and is now 6.5%,3 up from 6.4% at FY2022.
Our aggregated revenue is $10.9 billion, up from $9.1 billion in
FY2022. We’re seeing evidence from our customers that this trend
is expected to continue, as we solve their complex challenges
in traditional and sustainability-related work, using innovative
solutions.
Sustainability-related work has been a key driver of our growth.
With sustainability-related work now accounting for 41% of our
aggregated revenue, we’re confident we’ll continue to make strong
progress towards our ambition to have 75% of our revenue from
sustainability-related work by FY2026.
In FY2023, we won $6.3 billion of new sustainability-related work,
which is almost double the previous year. This is reflective of our
differentiated position in accelerating growth markets.
At the same time, we’re committed to supporting our customers
with their traditional work, as they move towards a lower-carbon
future, helping them bring to life projects that are less carbon
intensive, more efficient and digitally enabled. Traditional work in
our revenue has grown over FY2023. This remains an important
priority for our business, recognizing the important role these
customers, and their assets, play in providing stability as our
global economies transition.
Growth in sustainability-related work
41%
$3.2 billion to $4.5 billion
sustainability-related revenue
since FY2022
45%
of backlog is sustainability-related
work, up 56%3, from $4.1 billion to
$6.4 billion, since FY2022
77%
vs 56% at FY2022
sustainability-related opportunities
in the factored sales pipeline
1. Energy Transitions Commission, Financing the Transition: How To Make The Money Flow For A Net-Zero Economy, March 2023.
2.
3. Excludes the North American turnaround and maintenance business.
International Renewable Energy Agency, Global Landscape of Renewable Energy finance 2023, February 2023.
1313
Worley Annual Report 2023 Worley Annual Report 2023 Overview
Breaking ground on the first
commercial-scale development
using Carbon Engineering’s
direct air capture technology.
See our case study on page 34.
Our total backlog has grown 14%1 in the past year. This
demonstrates that we have been able to convert growth
in our factored sales pipeline into backlog and revenue.
Meanwhile, our total factored sales pipeline has continued to
increase, up 46% during the year and is a leading indicator of
future growth. We expect around two-thirds of our factored
sales pipeline to be awarded in the next 12 months.
We’re leading the way in completing some of the world’s
most ambitious and large-scale sustainability projects,
setting us apart as leaders in the industry
Delivering these projects requires innovative delivery models
that include digital solutions, automation and a “design one build
many” approach. Some of these projects are progressing to
both detailed engineering and construction phases. For example
1PointFive’s first commercial scale Direct Air Capture (DAC)
plant in the US and Northvolt’s battery cathode active material
facility as part of its battery gigafactory development in Sweden.
We see a clear path to increasing earnings and margins
We’re delivering on our strategy and building a sustainable growth
business. Market growth, increased market share and margin
expansion are the building blocks to delivering sustained double-
digit annualized earnings growth in the medium term. We will
drive margin expansion through our effective project delivery,
automation, digitalization and streamlined operations.
We also expect to benefit from further operating leverage in the
medium term, having reached our cost savings run rate target of
$375 million per annum.
We’re already realizing the benefits of our $100 million strategic
investment in organic growth and gaining market share. In FY2023,
we spent $37 million to further accelerate our growth areas,
focusing on capability building and digital enablement, new
solution development, and partnerships. We’re seeing a return on
investment through key awards and pipeline growth in areas such
as low-carbon hydrogen, battery materials and carbon capture,
use and storage (CCUS).
We continue to invest in technology and digitalization to enhance
asset efficiency and business productivity. We’re increasing the
automation of engineering deliverables to drive productivity gains
and to allow our people to focus on high-value, high-margin work.
We’re actively managing our portfolio in line with our strategy
and ambition. The sale of our North American maintenance
and turnaround business in May, allows us to focus on those
businesses and capabilities that support our strategy to deliver
high-value solutions in growth markets and our ambition to grow
our professional services revenue from sustainability-related work.
180%
growth in average sustainability-
related project size won vs FY2022,
indicating that more projects are
moving into subsequent phases
47%
sustainability-related revenue
across project wins in FY2023
vs 33% in FY2022
$1.8b+
increase in backlog at FY2023 over
FY2022 from investment in strategic
growth areas (see page 28).
1. Excluding the impact of the sale of the North American turnaround and maintenance business.
1414
Overview Overview
Context & strategy
Operating & financial review
Financial statements
People-based initiatives
We’re investing in our people
Development and re-skilling
We’ve issued over 86,500 digital and
sustainability-related learning accreditations
in FY2023.
Our new Learning at Worley online platform
offers flexible everyday learning, enabling
our people to follow their curiosity as well as
develop critical skills and experience.
Values and behaviors
We’re building on the strong foundation of our values
and behaviors by amplifying key behaviors that drive
our culture and help to achieve our ambition.
Safety and well-being
We embedded psychosocial factors into our
Life programs in line with ISO 45003:2021.
Our Respect at Work project sets out a program
that focuses holistically on the prevention of and
response to sexual harassment and harmful
behaviors in the workplace.
Attraction and retention
We launched Appreciate, our recognition platform.
This program facilitates peer-to-peer recognition
and has been embraced by our people with over
32,000 recognitions given to date.
We saw significant growth of followership
and hiring through our Worley LinkedIn profile.
Our engagement through LinkedIn increased by
164% over the last 12 months.
“Our values guide us as we support our
people to live healthy lives, respect one
another and feel included. We prioritize the
health, safety and well-being of our people.
Without this, nothing else matters.”
Throughout the year we’ve continued to invest in our people in
two key areas. The first is strengthening the Worley experience.
We’re proud of our culture, and it is a competitive advantage for
our business. We’re focused on building a respectful environment
where our people feel a strong sense of belonging and can be
their best selves every day. With this in mind, we launched our
leadership principles which outline the role of a leader at Worley.
Our Respect at Work initiative also focuses on respectful and
inclusive workplace behaviors for everyone.
Our second area of focus is on building the right environment to
attract and retain critical capabilities at scale. To ensure our people
can innovate and grow, we have invested in meaningful programs
and the digital platforms that will allow us to work in a more agile
and collaborative way. We continue to be successful in attracting
and retaining the people we need to deliver our portfolio of
projects. Our people are deeply committed and demonstrate great
levels of discretionary effort. With that in mind, we continue to
invest in supporting the mental health and well-being of our people
as well as their physical health and safety. Our Total Recordable
Case Frequency Rate for employees for the 12 months to June
2023 was 0.14 (per 200,000 man-hours) which has decreased
from 0.16 at 30 June 2022.
Thank you to our people, our customers
and our shareholders
In closing, this is an exciting time for our business and our people.
We have the right strategy, right structure and the right team.
We’re delivering our strategy and unlocking new opportunities as
momentum in our markets continues to build and our customers
increasingly look to us to solve some of their most complex
challenges. Our purpose, values and our leadership will continue to
ensure we have the right culture and create rewarding experiences
for everyone who works for Worley.
Our continued success is, without doubt, because of the
extraordinary efforts of our people and their desire to leave a
positive mark through the work we do. I thank each and every
one of them.
I also extend this thanks to our shareholders, customers
and partners for their continued support of our business and
for working with us to make a difference and progress our
collective ambition for a future of net zero.
Chris Ashton
Chief Executive Officer
1515
Worley Annual Report 2023 Worley Annual Report 2023
Group Executive
The Group Executive is our senior leadership team reporting into our Chief Executive
Officer. It comprises the leaders of our regions and functions. The Group Executive
advises the Chief Executive Officer about the planning, development and efficient
functioning of our global business.
Chris Ashton
Chief Executive Officer
Tiernan O'Rourke
Chief Financial Officer
Vikki Pink
Chief People Officer
Mark Brantley
Group President,
EMEA APAC and Global Project
Delivery, HSE & Quality
Sue Brown
Executive Group Director,
Sustainability
Andy Hemingway
Executive Group Director,
Growth
Larry Kalban
Group General Counsel,
Legal
Nuala O’Leary
Group Company Secretary
Laura Leonard
Executive Group Director,
Technology Solutions
Adrian Smith
Executive Group Director,
Transformation
Geeta Thakorlal
Executive Group Director,
Information and Digital Delivery
Mark Trueman
Group President,
Americas
1616
Overview Overview
Context & strategy
Operating & financial review
Financial statements
We live our purpose and values.
This is what sets us apart. We
energize, develop and empower our
people to drive sustainable impact.
17
Worley Annual Report 2023 The world
we operate in
Our world is changing, and we continue to anticipate and respond to these changes.
The markets we serve are changing as macro trends and shifts shape the way our
customers position themselves in the energy, chemicals and resources sectors. Below,
we outline five macro trends of specific importance to our business, presenting both
challenges and opportunities.
Energy transition gains momentum
New policies and regulatory frameworks (e.g. US Inflation
Reduction Act) are creating the right conditions for our customers
to be more ambitious in their sustainability investments and goals.
In February 2023, the European Commission announced the
Green Deal Industrial Plan. This plan builds on the €1 trillion
European Green Deal to scale up the EU’s technology development,
manufacturing capacity and installation of net-zero technologies
and products. In Australia, legislation passed in September 2022 to
achieve net zero by 2050, with more aggressive targets for 2030
than the previous government.
Energy transition investment has reached more than US$1 trillion
for the first time according to BloombergNEF’s latest Energy
Transition Investment Trends 2023. It forecasts that investment
will need to triple between now and 2030 to be on a pathway to
net zero by 2050.
There is a surge in demand for critical minerals driven by the energy
transition, which the International Energy Agency (IEA) forecasts to
quadruple by 2050.
We’re partnering with our customers to develop innovative
solutions to address their needs in delivering the energy
transition (see page 60).
Independent and diverse energy supply is in demand
The response to the energy crisis in Europe shows a significant
ability to react quickly with new policy settings, which included
an energy security and energy transition focus.
Inflation in energy prices, particularly in Europe, is renewing
short-term reliance on established energy and resources. The
increased investment in liquefied natural gas (LNG) infrastructure,
driven by energy security concerns, is elevating gas as a globally
traded commodity.
Resource nationalism is also driving investments in critical
infrastructure. The Inflation Reduction Act in the US has launched
America’s largest ever investment in decarbonization – directing
US$370 billion towards investment in clean energy (such as
hydrogen, CCUS and low-carbon fuels).1 In parallel, the US
government has called on US oil refiners to produce more gasoline
and diesel to help mitigate price pressures due to the Russia-
Ukraine crisis.
Our strategy addresses how we’re tackling the criticality of near-
term affordable energy, and energy security, while addressing the
challenge of decarbonizing energy and industry (see page 24).
Sustainable investment is growing and requires a complex
balance of mulitple factors
After decades of promise, global sustainable investments are set
to exceed US$53 trillion by 20252, representing more than a third of
the US$140.5 trillion in projected total assets under management.
This is driven by investor demand, government regulation and
societal pressure.
There have been significant developments in ESG regulations,
including litigation of operators and institutional investors for
“greenwashing.”
IEA, Inflation Reduction Act of 2022, April 2023.
1.
2. Bloomberg Intelligence, ESG assets may hit $53 trillion by 2025, a third of global AUM, February 2023.
18
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
Image taken by Rodolfo Castro, as part
of our Earth Day photo competition.
These developments are increasing the transparency and quality of
corporate disclosures as well as accountability for delivery against
public statements. The introduction of the ISSB standards by the
IFRS Foundation marks significant progress in financial disclosure
norms. This shift underscores the growing emphasis on risks and
opportunities related to sustainability, supporting businesses that
prioritize sustainable practices.
Our purpose and our attraction and retention strategies enable
us to navigate competition for talent (see page 76), but we
expect the demand for our expertise to outweigh supply at some
point in the future. As such, we’re increasing use of existing and
developing technologies, digitalization and automation to enhance
talent attraction and transform how we deliver solutions for our
customers (see page 60).
An emerging concept is “environmentalism that builds,” leveraging
economic growth to propel the necessary scale and speed of
sustainable development. Maintaining trust as companies take the
lead in ESG efforts is vital, transitioning from intentions to tangible
actions. Amidst challenges like inequality, climate change, and
conflicts, regulatory bodies and investors are increasingly focused
on driving responsible actions and accountability.
Participating in programs like the UN Global Compact Business
and Human Rights Accelerator demonstrates our commitment
to addressing human rights concerns and operating ethically
(see page 53).
Tightening talent market continues to demand focus
The World Economic Forum1 states that without a new paradigm
of leadership and an associated talent strategy, the global energy
crisis will never be solved. They’ve noted that a sustainable supply
of talent is needed, together with the billions of dollars of capital
and government support, to achieve a greater energy supply.
It’s critical we ensure a pipeline of people with skills and experience
to meet these needs. Our people have fungible skills as they
work across both traditional and sustainability-related work.
Digital innovation has the potential to revolutionize project
delivery and asset management
To deliver projects at pace and scale, the world needs to increase
use of existing and developing technologies, digitization and
automation. Using data, automation and artificial intelligence
(AI) is critical to deliver mid-century net-zero outcomes. The
World Economic Forum notes that US$1.3 trillion can be saved
on clean energy generation investment between 2020 and 2050
by implementing automation and AI alone2. It also estimates that
project costs and implementation schedules could reduce by 30 to
50%, more than doubling project returns through digital innovation.
Additionally, customers are driving step-change improvements
in existing infrastructure and assets through big data and digital
asset management. Customers can use advanced analytics
to significantly lower costs and risks, reduce preventative
maintenance expenses and increase reliability.
We’re helping customers make autonomous industrial assets a
reality by driving innovation in project delivery, generative AI and
automation (see page 63).
1. World Economic Forum: Talent is the next energy crisis. Here’s what we can do about it.
2. World Economic Forum, Artificial Intelligence is critical enabler of the energy transition, study finds.
19
Worley Annual Report 2023 Material sustainability issues
This chapter presents the material sustainability issues that inform our business strategy. For disclosure of all material
enterprise risks and opportunities, see our risk management section (page 86).
We conduct an annual materiality assessment to identify
the sustainability issues that matter most to our business
and the world around us. We view these issues through the
lens of the UN SDGs. Our material sustainability issues are
reviewed and approved by the Board Health, Safety and
Sustainability Committee.
We conduct our assessment in line with the principle of
double materiality.
Financial materiality – We consider a topic material if it could
affect our ability to create value in the short, medium or long term.
Impact materiality – We also consider topics as material where
our business activities have significant impacts on the economy,
environment and people. These include impacts on human rights.
We've considered the results of our materiality assessment in
how we manage our enterprise risks and opportunities.
Stakeholder engagement
Engagement helps us understand our stakeholders’
expectations and find ways to improve.
Our people
We engage through our check-ins, leadership talks, People
Network Groups, and our annual sustainability survey.
Our customers
We conduct project, account, portfolio and management
engagement with our customers. We monitor their
business needs, market trends and feedback on our
own performance.
Our investors
We engage through our investor engagement program, and
conduct investor and results presentations, analyst briefings
and annual general meetings.
ESG frameworks
We actively participate in a range of ESG questionnaires.
Suppliers
We actively engage with our supply chain and monitor
for potential risks.
Communities
We engage through a variety of channels, including the
Worley Foundation and Corporate Affairs.
See page 83 to find out more about how we engage with our
stakeholders.
20
FY2023 material sustainability issues
Our material issues for FY2023 remain unchanged from FY2022:
good health and well-being (SDG 3), affordable and clean
energy (SDG 7), industry, innovation and infrastructure (SDG 9)
and climate action (SDG 13).
We integrate our material sustainability issues into business
governance, strategy, risk management and performance.
Business
value
drivers
SDG
Integration into our business
Governance
Sustainability governance
(see page 54)
Corporate Governance
Statement
Strategy
Ambition (see page 21)
Strategy (see page 24)
Value creation (see page 22)
Risk management
Task Force on Climate-related
Financial Disclosures
Modern slavery risk process
(see page 81)
Risk management framework
(see page 86)
Performance
ESG performance summary
(see page 51)
Value creation (see page 22)
We support the UN SDGs and uphold the principles of the
UN Global Compact.
There are a number of additional UN SDGs of relevance to our
business: gender equality (SDG 5), decent work and economic
growth (SDG 8) and responsible consumption and production
(SDG 12).
In light of the capital spend we expect as the energy transition
gathers place, our impact on decent work and economic growth is
of particular importance. Our human rights program increases our
focus on this issue (see page 81).
Our GRI content index provides further detail about our materiality
assessment and material sustainability issues.
Context & strategy
Overview
Context & strategy
Operating & financial review
Financial statements
Our purpose, ambition and values
The industries in which we operate are facing a period of significant disruption. They are dealing with complex
geopolitical challenges, socio-economic pressures and the urgent need to address the climate emergency.
In response, many of our customers are evolving their businesses to fulfill their sustainability commitments. We have a leading
role in supporting our customers with the solutions they need. Our purpose – delivering a more sustainable world – is central to
our transformation.
Last year, we announced our ambition to become the global leader in sustainability solutions. Our values underpin both our
purpose and ambition.
Purpose
Delivering a more
sustainable world.
Ambition
We will be recognized
as a global leader in
sustainability solutions.
Values
We value Life
We believe in the
safety, health and
well-being of our
people, communities
and the environment.
Without it, nothing
else matters.
We Rise to the
challenge
We love a challenge.
We go the extra mile,
delivering new and
better solutions to
complex problems.
We Unlock brilliance
We are passionate
about innovating
and learning. We
value, share and
grow our expertise.
We are Stronger
together
We thrive in real
relationships and
partnerships. We
nurture networks
and collaboration.
We recognize our
differences make
us stronger.
Our ambition is based on three measurable pillars:
our People, our Portfolio and our Planet.
Our People
Our Portfolio
Our Planet
We energize and empower our people
to drive sustainable impact
We foster a safe, inclusive and
innovative work environment that
inspires our people.
We provide outstanding opportunities
to learn, develop and drive sustainability.
We attract and retain top talent with
diverse backgrounds.
We are our customers’ most
trusted partner, providing
best-in-class solutions
We accelerate our growth and aspire
to derive 75% of our revenue from
sustainability-related work by FY2026.
We implement new solution-based
models, enabled by data, technology
and automation.
We expand the value we bring to our
customers, share in that value and
ensure a higher return on investment.
We partner with customers as
stewards of a more sustainable world
We commit to our own sustainability –
reaching net-zero Scope 1 and Scope 2
emissions by 2030¹ and Scope 3
by 2050.
We partner with customers
committed to driving sustainability:
together we decarbonize value chains
and steward resources.
We seek to be recognized globally
for our leadership in sustainability.
We’re investing in line with these pillars as we build on our transformation. We’re taking deliberate actions aligned
with our purpose and underpinned by our values. Our ambition guides our strategy.
1. We have an interim target of 65% reduction in net Scope 1 and Scope 2 emissions by FY2025 from an FY2020 baseline.
Worley Annual Report 2023
21
How we create value
Our value map shows the range of resources
and relationships we rely on to create value
today and tomorrow.
The use of business value drivers is part of our shift
towards alignment with the International Integrated
Reporting Framework. They represent the forms
of capital that we commonly depend upon to create
value for our business and for our stakeholders.
Inputs
People
Energized and empowered people with the capacity
and experience to deliver our purpose.
48,223 people employed
20.8% women
Finance
Active capital management from diverse and
competitive sources, driving business growth
and value for our investors.
$14.1 billion1 backlog as at 30 June 2023
$37 million strategic investment in organic
growth in FY2023
Knowledge, technology and data
What we know – our brand, execution methodologies,
intellectual property, data, technology, knowledge and
insights – together driving efficiency and productivity.
4,900+ people in our GID centers
100+ automation bots and workflows
Equipment and fabrication
Manufacturing, constructing, operating and
maintaining equipment and assets for the energy,
chemicals and resources sectors.
15,100 blue collar workers
4 main construction and field services centres
Environment
The natural resources we use and the work we do,
together enabling us to steward environmental
sustainability for our business and our customers.
85% of top 20 customers (by revenue) with
net zero commitments2
211,640 MWh energy use
Communities
Strong relationships within our sectors - with our
people, customers, investors, communities and
governments – building trust and license to operate.
2,671 customers3
45 countries
1.
2.
3.
Excludes the divested North American turnaround and maintenance business.
Customers with net-zero Scope 1 and Scope 2 commitments by 2050 or sooner.
Customers we secured work from in FY2023.
22
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
Value creation
Outcomes
Purpose
Delivering a more sustainable world
Our People
Ambition
Our Portfolio
Our Planet
We’re a professional services company of energy,
chemicals and resources experts. We use our collective
knowledge, systems and solutions to help our customers
shift their operations to a more sustainable future.
See page 43
Low-carbon
energy
Conventional
energy
Resources
Chemicals
and fuels
Our value creation model is underpinned by:
our sustainability approach (see page 51)
robust corporate governance (see page 96)
our risk management framework (see page 86)
Values
We value
Life
We Rise to
the challenge
We are
Stronger
together
We Unlock
brilliance
We deliver value for our stakeholders, including our
customers, people, investors and communities. We
also reinvest value created back into our business to
support our continued growth.
People
0.14 Total Recordable Case Frequency Rate
48% women graduates hired
Read more on page 74
Finance
$348 million underlying NPATA
$1,075 million GM delivered in
sustainability projects
Read more on page 55
Knowledge, technology and data
7.18 million hours using GID
to deliver projects
Productivity up 11%
(underlying EBITA/headcount)
Read more on page 59
Equipment and fabrication
80+ EPCM projects delivered
600+ large modules fabricated
Read more on page 65
Environment
$6.4 billion sustainability-related
backlog
41,422 tCO2e (Scope 1 and 2)
Read more on page 67
Communities
21 Worley Foundation projects
$11,170 million economic value
generated and distributed
Read more on page 78
23
Worley Annual Report 2023 Our strategy
We are facing two realities in our
energy system:
1. We’re tackling the criticality of
near-term affordable energy
and energy security.
2. We’re addressing the challenge of
decarbonizing energy and industry
to deliver net zero by 20501,
against a landscape that is ever
more complex.
Our customers are making substantial capital investments in both areas. We’re right
at the heart of it.
We have a bold ambition that by FY2026, 75% of our aggregated revenue will come
from sustainability-related work. Traditional energy markets remain important to us,
and investment in these areas will increase due to energy security, affordability and
depleting reserves.
We’re helping customers in traditional hard-to-abate markets decarbonize, while also
shaping the future of sustainability in the markets where we operate.
We’re partnering with our customers – not just delivering projects – to create value over
the life of their portfolio of assets. We’re also working with them to address the challenges
of bringing new sustainable technologies to market.
Our strategy places us at the center of accelerating sustainability investment with existing
and emerging customers.
We’ve set our strategy to capitalize on profitable growth
Our market environment
Our core beliefs
We’re bridging two worlds as
we accelerate towards more
sustainable energy sources.
Substantial capital investments
will drive growth in the energy,
chemical and resources
sectors over the long term as
the world addresses energy
security, affordability and
sustainability needs.
Our customers require trusted
partners with proven experience to
minimize risk and deliver lifetime
value for their portfolio of assets.
Where we play: we’re leading
by supporting customers in
traditional hard-to-abate
markets to decarbonize while
shaping the future of our markets
in sustainable development
(mature, establishing and
breakthrough markets).
How we play: we’re actively
managing our portfolio of
businesses and focusing on growth
markets, capabilities and offerings
that drive value creation for our
broader set of stakeholders.
How we will win: we’re a
one-stop solutions provider
for our customers, with a
particular focus on digitally-driven
consulting services for the whole
asset life cycle as well as
“next-generation” project
delivery and execution services.
Our Ambition
We will be recognized
as the global leader in
sustainability solutions.
Target 75% of aggregated
revenue from sustainability-related
work by end of FY2026
Double-digit medium-term
EBITA CAGR
EBITA % (excluding procurement)
to be within a range of 7.5-8%
in FY20242
1.
2.
United Nations, Paris Agreement 2015.
All forward looking statements, including the FY2024 Group outlook, remain subject to no material deterioration in current market conditions.
See page 3 for more information.
24
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
Where we play
We’re actively managing our portfolio of businesses. We do this by pursuing growth in a
structured way in target markets with significant growth opportunities at higher margins.
Mature
Establishing
Breakthrough
Supporting customers in mature markets
Leading position in establishing markets
Focused steps in breakthrough markets
We’re focused on targeted areas
– energy security, decarbonization
and lower-carbon intensity developments.
We continue to build our leading position
in establishing market segments as
technologies scale and supply and
demand normalize.
We’re actively managing our portfolio
of businesses and focusing on growth
markets, capabilities and offerings that
drive value creation for our broader set
of stakeholders.
Low-carbon
energy
Conventional
energy
Chemical
& fuels
Integrated
gas
Renewable
energy
Nuclear
SMR
Networks
and energy
storage
Low-carbon
hydrogen
Carbon capture, use
and storage (CCUS)
Offshore
oil
Onshore
oil
Combustion
energy
Midstream
energy
infrastructure
Chemicals
Refined
fuels
Petro-
chemicals
Sulphur
recovery
and reuse
Plastic
recycling
Low-carbon
fuels
Specialty
chemicals
Resources
Bulk
commodities
Fertilizers
Resource
infrastructure
Precious
metals
Energy
transition
materials
Water
management
Battery
materials
y
g
r
e
n
E
l
a
c
i
m
e
h
C
s
e
c
r
u
o
s
e
R
25
Worley Annual Report 2023 How we define sustainability-related work
Our traditional business remains steady, while our
sustainability-related work is growing at a faster rate.
We currently report our sustainability-related work through four pathways:
Decarbonization, Resource stewardship, Environment & Society, and Asset
sustainability. We calculate these based on two measures.
1. The work we conduct that relates to the following markets
Decarbonization
Resource stewardship
• Energy transition materials
• Nuclear energy
• Renewable energy
• Low-carbon fuels
• Integrated gas1
• Bio-based materials
• Metals recovery
• Plastics recovery
• Sulphur recovery
2. The work we conduct that provides the following sustainability
solutions, which we can apply across all markets
Decarbonization
Resource stewardship
• Carbon management
• Decarbonization infrastructure
• Energy efficiency
• Electrification
• Recycling
• Process efficiency
• Waste management
• Water stewardship
Environment & society
Asset sustainability
• Environmental management
• Social performance
• Policy & regulatory
• Remediation & liability
management
• Sustainable design
• Development and
commercialization
• Performance optimization
• Decommissioning & restoration
We refer to all business falling outside of sustainability-related work as
traditional work.
Globally recognized frameworks are emerging relating to sustainability
disclosure, such as the EU taxonomy for sustainable activities and the
ISSB standards for disclosure. These provide guidance on how to classify
transitional and sustainable economic activities and help us identify,
assess, respond to and disclose sustainability-related risks, opportunities
and metrics. We’re monitoring these and will continue to evolve our
sustainability reporting to meet leading practice.
1. We consider integrated gas as a transitional energy necessary to achieve net-zero emissions.
26
Our sustainability-related work today
makes up a significant proportion of our
revenue, backlog and pipeline.
Aggregated revenue
Sustainability
Traditional
41%
59%
Backlog
Sustainability
Traditional
45%
55%
Factored sales pipeline
Sustainability
Traditional
77%
23%
FY2023 sustainability-related
aggregated revenue (%)
33%
Low-carbon energy
Integrated gas
Nuclear
Renewable energy
Direct air capture
Low-carbon hydrogen
Conventional energy
Gas-fired power
Decarbonization including CCUS
15%
Chemicals and fuels
Low-carbon fuels
Bioplastics
Decarbonization including CCUS
18%
Resources
Energy transition materials
Low-carbon fertilizers
Water
34%
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
Enabling emerging
technologies in
solar energy.
See our case study on page 30.
27
Worley Annual Report 2023 Incubating and developing solutions
for our chosen high-growth markets
We’re benefiting from our $100 million strategic investment in organic growth and our early-mover advantage
We’re targeting the right areas and making progress towards our ambition, evident through key awards and pipeline growth in these
areas. We’re harnessing the strengths of our current business and building strategic partnerships, focusing on accelerating growth in
sustainability-related work.
Our strategic
investment
in FY2023 of
$37 million was
spent across:
• 20% on market
assessments and
planning
• 45% on capability
building through
strategic hires, agile
teams and industry and
customer partnerships
• 20% on digital
enablement and
solutions
• 15% on internal training
and development.
Copper
Become the trusted partner
of leading copper producers
to accelerate the design
and delivery of solutions
for complex copper assets
to support electrification
required by the energy
transition.
Achievements
Value of wins in FY2023
$270 million
vs $261 million in FY2022
• We partnered with an
Australian equipment
provider to deliver an
innovative solution
for copper tailings
reclamation.
• We partnered with
a prominent global
equipment provider to
develop a standardized
solution for tailings
dewatering.
Networks and energy
storage
Become the key integrator
providing solutions for
energy system optimization,
long-duration energy
storage, demand response
technology, and transmission
and distribution networks
across the asset life cycle.
Achievements
Value of wins in FY2023
$191 million
vs $89 million in FY2022
• We completed a market
assessment of solutions
and pathways for
sustainable development.
• We helped industrial
customers proactively
manage their electrical
consumption and
sustainability initiatives.
See our energy storage case
study on page 30.
Water
Become an integrated water
solutions provider, with
solutions across multiple
parts of the water envelope
and project life cycle.
Achievements
Value of wins in FY2023
$441 million
vs $217 million in FY2022
• We completed a market
assessment and focused
interviews with industry
partners, with an initial
focus on the US.
• We’re working on solutions
to integrate our water
proposition across the
value chain.
See our water case study
on page 40.
28
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
$37m
investment in strategic
growth areas in FY2023
$1.8b+
increase in backlog at
FY2023 over FY2022
from investment in
strategic growth areas
Low-carbon hydrogen
Become the leading partner
in low-carbon hydrogen by
developing repeatable, scalable
and digitally enabled advisory
and project delivery solutions.
Achievements
Value of wins in FY2023
$138 million
vs $89 million in FY2022
• We established asset
optimization demonstration
centers in The Hague and
Houston in collaboration with
IBM and ABB.
• We developed the first
Worley Repeatable
Accelerated Product (WRAP),
a 100-megawatt low
pressure alkaline unit.
Carbon capture, use
and storage
Become the leader in providing
solutions for our customers’
CO2-emitting assets that
sustainably and economically
capture, use and store
emissions.
Achievements
Value of wins in FY2023
$1.5 billion
vs $84 million in FY2022
• We’re developing new
solutions and we’ve
established our carbon policy
advisory team.
• We’ve secured two projects
within the cement industry,
expanding into a new market
segment for us.
See our low-carbon hydrogen
case study on page 31.
See our CCUS case studies on
page 34.
Low-carbon fuels
Battery materials
Capitalize on our role as
the market leader (e.g. in
sustainable aviation fuels
and biofuels) to expand our
customer base from early
concept into new parts of the
value chain.
Achievements
Value of wins in FY2023
$292 million
vs $311 million in FY2022
• We established global market
development agreements
with leading technology
providers, with an initial focus
on the US.
Build on our leading market
share in battery active
materials by expanding the
customer base, increasing
delivery capacity and
developing repeatable,
scalable and digitally enabled
capital deployment and asset
management solutions.
Achievements
Value of wins in FY2023
$1 billion
vs $100 million in FY2022
• We created repeatable,
scalable and digitally enabled
capital deployment and asset
management solutions.
• We’ve collaborated with
• We were awarded 144
methanation and methanol
synthesis technology
providers to develop mass-
deployable standardized,
modularized and replicable
process plants.
See our low-carbon fuels case
study on page 37.
projects including six battery
recycling projects, six anode
projects, six cathode projects
and expanded our customer
base with 13 new customers.
29
Worley Annual Report 2023 Sector outlook
Energy
We report on the energy sector with respect to both low-carbon energy and conventional energy.
We support our existing and emerging customers across both their traditional businesses and their
sustainability investments. Refer to page 43 for how we define our sectors.
Low-carbon energy
Power and low-carbon hydrogen
Strong market growth continues in low-carbon energy to meet
net-zero targets. According to BloombergNEF’s Energy Transition
Investment Trends 2023, supply-side investment has reached
US$500 billion for the first time, with additional US$275 billion
investment in power grids. Most low-carbon energy technologies
saw record investments last year. BloombergNEF forecasts that
investment will need to triple for the remaining years to 2030 to
achieve a pathway to net zero.
Increasing investment has been supported by some regions
establishing key enabling legislative frameworks and financial and tax
incentives. For example:
• the US Inflation Reduction Act (IRA) was signed into law in
August 2022
• the EU Green Deal Industrial Plan launched in January 2023
• Australia passed legislation in September 2022 to achieve net
zero by 2050, with more aggressive targets for 2030 than the
previous government
• the UK announced its spring budget 2023 which includes
government’s support for CCS and nuclear
• according to BloombergNEF, as at January 2023, 42 countries have
published hydrogen strategies (vs 35 countries as at June 2022)
• Germany held its first auction of its H2Global green hydrogen
import scheme in December 2022.
We’re focused on high-value market segments, including:
• low-carbon hydrogen and power-to-X (i.e. converting electricity
into carbon-neutral synthetic fuels)
• renewable energy – emerging technology, integrated projects at
scale, offshore transmission and floating wind
• networks and energy storage – integrated projects, grid
connections of renewables and hydrogen
• nuclear - large scale nuclear and small modular reactors.
We’re seeing critical hydrogen and power-to-X projects with our
key customers progressing from early phases to FEED or FID. Our
average project size has more than doubled in the last 12 months as
we’ve leveraged our early engagement through Advisian to secure
subsequent phases of work.
We’re driving innovation for the asset life cycle through our
Asset Optimization Center for low-carbon hydrogen.
30
This aims to drive new emerging technology down the cost curve to
achieve faster commerciality.
We’re increasingly seeing renewable developments being integrated
into broader industrial developments. We’re uniquely positioned to
provide an integrated offering in more complex markets, combining
our cross-sector expertise from mining, chemicals and fuels and our
offerings in environmental services and supporting infrastructure.
CASE STUDY | Low-carbon energy |
Solar and energy storage
Enabling emerging technologies
in solar energy
We’re supporting RayGen, an Australian technology
provider, in partnership with Photon Energy, an EU-listed
renewable energy project developer, with their plans
to build a utlity-scale, grid-connected solar plant with
a world-leading GWh-scale storage capacity in South
Australia. The Yadnarie project is on track for state and
grid connection approval.
This project is the first of a growing pipeline of utility-
scale projects that will deliver RayGen’s groundbreaking
solar-plus-long-duration energy storage technology.
We’re providing early engineering and FEED, supporting
RayGen to reach final investment decision. RayGen’s
technology combines high-efficiency, tower-mounted
photovoltaics with water-based long-duration energy
storage and is backed by investment from AGL, Equinor,
SLB, Chevron and Photon Energy.
UN SDGs:
Business value drivers:
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
CASE STUDY | Low-carbon energy | Hydrogen
Unlocking hydrogen potential in the UK
with Cadent Gas
We’re delivering a study for Cadent Gas (Cadent), as part of
the East Coast Hydrogen Project (ECHP), to understand how
to transition natural gas supply into hydrogen, including sizing
and routing of a pipeline that is to be converted from gas to
hydrogen service.
The project led by East Coast Hydrogen (ECH2) will connect
10 GW of hydrogen production from Humber and Teesside
industrial hubs to the gas network. With this project, Cadent
aims to connect hydrogen supplies between Humberside and
Northampton, potentially creating a 240-kilometer network.
ECH2 comprises a collaborative partnership with Cadent,
Northern Gas Networks and National Gas Transmission.
When completed, the project will accelerate the industrial
decarbonization for the UK and is also estimated to create
tens of thousands of jobs in the future hydrogen economy.
“This is a major milestone not only in the first stage of design
but also puts down another marker in Cadent’s ambitions
and efforts to transition the gas grid from natural gas to
low-carbon hydrogen. We look forward to starting this
journey with Worley, who shares our vision and strives for
a sustainable energy future,” says Adam Knight, Project
Director at ECHP.
UN SDGs:
Business value drivers:
Worley Annual Report 2023
31
31
Worley Annual Report 2023 Integrated gas
Our subsector, Integrated gas, includes all upstream and
midstream elements of the natural gas value chain from
extraction, production through gas processing, storage,
liquefaction and regasification. It also includes the emerging
renewable natural gas. We see gas as an important bridging source
of energy, which emits less carbon than most other fossil fuels.1
Growth in integrated gas investment is primarily driven by return
of activity levels following the global pandemic, energy security
impacts from the Russia-Ukraine conflict and global trends
towards lower-carbon intensity fuels.
Rystad Energy forecasts a 29% growth in investment from
pre-pandemic levels through to 2025, peaking at around
US$200 billion for several years. There may then be some
softening of investment through to 2030 but it is expected
to remain at or above 2023 levels.
Shell’s LNG Outlook 2023 forecasts strong economics to add
new LNG capacity over the medium term, where there are
low-cost, plentiful gas supplies. For example, Venture Global
CP2 and Western LNG are progressing towards final investment
decision in 2023.
The Middle East is very active in gas-related projects. Both
Saudi Aramco and ADNOC have active programs to increase gas
production capacity, with spend forecast to be above 2022 levels
by at least 50% for the next several years.
There is strong demand for LNG regasification and midstream
pipeline expansion in import markets, mainly fueled by the
reduction in Russian gas to Europe. Germany contracted five
floating storage and regasification units (FSRU’s), and projects
are underway to install this capacity. This will continue across
Europe to ensure energy security in the medium term.
Customers are responding to regulatory and social license
pressures to decarbonize their operations. There is a particular
focus on the most commercially viable carbon capture and
selective electrification projects.
Renewable Natural Gas (RNG) is a large and growing market.
RNG is biogas that has been upgraded for use in place of fossil
natural gas. The Global Newswire reported that this area is
expected to grow at 28% compound annual growth rate (CAGR)
over the next ten years. Developing technology and increasing
the use of standardization and digital tools to improve yields
and economics will be key.
1.
IEA Natural Gas, August 2023, iea.org.
32
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
CASE STUDY | Low-carbon energy | Integrated gas
Working with Venture Global on its
Calcasieu Pass 2 LNG terminal project
We’ve agreed substantive terms for a reimbursable
engineering, procurement and construction (EPC) contract
for Venture Global’s Calcasieu Pass 2 LNG export facility in
Louisiana, USA.
Construction of Phase 1 will focus on speed to market.
The plant uses a highly modularized approach to enhance
construction efficiency and safety.
Under the contract, we will provide full EPC execution,
including engineering, procurement, direct-hire construction,
management of subcontracted services, commissioning
and start up for Phase 1 of the terminal. The reimbursable
EPC contract, once signed, will be led by our Houston and
Reading offices and supported by our GID offices in India.
The full notice to proceed is expected to be issued after
Venture Global takes a final investment decision. Construction
is expected to commence late in 2023 once Federal Energy
Regulatory Commission (FERC) approval is achieved.
UN SDGs:
Business value drivers:
3D rendered images of CP2
33
Worley Annual Report 2023 We’re working on some of the largest
CCUS projects in the world.
~75 mtpa
100+
CO2 expected to be captured
from active CCUS projects
subject matter
experts for CCUS
CASE STUDY | Conventional energy |
CCUS
CASE STUDY | Low-carbon energy |
CCUS
Collaborating with the supply chain
to deliver carbon capture
As part of a consortium with Mitsubishi Heavy Industries
Group and Tecnicas Reunidas, we’ve been awarded a
FEED contract by SSE Thermal and Equinor for a new
low-carbon power station in Peterhead, UK. We’ll project
manage and provide engineering and design services to
integrate the carbon capture technology with the power
unit. Work will be delivered by our teams in the UK.
The Peterhead Carbon Capture Project could become one
of the UK’s first power stations equipped with carbon
capture technology. It aims to remove up to 1.5 million
tonnes of CO2 emissions annually, approximately 5% of
the UK Government’s 2030 target.
Located on the same site as the current Peterhead Power
Station, the project will gradually replace older, carbon-
intensive generation in the electricity system and back up
renewable energy with flexible, low-carbon power.
Carbon capture units will be integrated into a
power turbine with a generating capacity of up to
910 megawatts.
The project will not only make a significant contribution to
the UK’s carbon targets, but it will boost local and national
economies. It’s reported that upon completion, the power
station will contribute £50 million to the UK economy
annually and support 560 jobs.
Breaking ground on Occidental and
1PointFive’s first commercial-scale
direct air capture plant
This year, we signed the EPC contract for Stratos,
Occidental’s and 1PointFive’s first direct air capture
plant currently under construction in Texas. In April 2023,
we joined Occidental and 1PointFive to celebrate
a groundbreaking for the plant, a milestone that
follows our long involvement with the world’s the first
commercial-scale DAC plant using Carbon Engineering’s
DAC technology.
Stratos is located in the US Permian Basin and will
capture and remove large volumes of carbon dioxide
from the atmosphere, which can be safely and securely
stored deep underground or used to produce low-carbon
products. This plant provides a way to remove CO2 that
is currently in the atmosphere and addresses emissions
from hard-to-decarbonize industries, such as aviation,
maritime and long-haul trucking.
To put the scale of the project into perspective, currently
globally, only 10,000 metric tons of CO2 per year are
captured through direct air capture. Once operational,
Stratos is expected to capture up to 500,000 metric tons
of CO2 per year.
UN SDGs:
UN SDGs:
Business value drivers:
Business value drivers:
34
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
Conventional energy
Global investment in upstream oil production increased in
FY2023, returning to pre-global pandemic levels in nominal
terms according to Rystad Energy.
Investment is expected to remain elevated in the short term,
as producing nations and international energy companies manage
the balance of near-term energy security and net-zero objectives.
Medium and long-term outlooks are variable, depending on
various factors, including ongoing levels of low-carbon energy
investment and electric vehicle adoption.
In general, the European operators have been moving towards
diversification and transformation into broader energy
companies, while the US operators have retained a strong
focus on decarbonization of their core upstream operations.
Rystad Energy predicts that future investments will likely be biased
towards lower-cost, lower-carbon intensity developments. This
offers greater resilience under varying energy transition scenarios.
Our customers are looking for economic ways of reducing carbon
intensity. We are advising them on decarbonization pathways that
will address Scope 1 and Scope 2 emissions at production sites.
Key opportunities include efficiency improvements, reduction
in venting, flaring and fugitive emissions of associated gas,
electrification and decarbonization of heat and power through
carbon capture or hydrogen fueling.
For example, we’re working with a US operator to apply carbon
capture and sequestration and hydrogen blending to existing
cogeneration units and with a North Sea operator to electrify
offshore operations.
CASE STUDY | Conventional energy | Upstream
Supporting Shell in the Gulf of Mexico
We’re providing the engineering and design services for the Sparta project, a floating production development approximately
270 kilometers off the Louisiana coast. The development is owned by Shell (51%) and Equinor (49%), who are progressing the
project toward a final investment decision expected later in 2023.
The project builds on our efficient design for a lightweight floating production unit, previously developed on two other Shell
projects. We’ll be implementing a full suite of digital tools for the project. In addition to the engineering and design services, we’re
providing procurement support, construction and commissioning support for the FEED, detailed design and follow-on phases of
the project.
Our Houston and Metairie offices will be supported by our GID team in India to deliver the project.
UN SDGs:
Business value drivers:
35
Worley Annual Report 2023 Chemicals and fuels
Chemicals
In the near term, high inflation, rising energy costs (particularly
in Europe) and a declining rate of GDP growth have slowed the
growth in the global chemicals industry.
However, the long-term outlook is positive with customers making
investment decisions today to secure future markets. Future oil
and gas demand is largely driven by growth in chemicals usage,
as the need for fossil-based transportation fuels declines. Large
oil-to-chemicals and gas-to-chemicals programs by Middle
Eastern national oil companies have restarted this year as they
look to secure long-term markets for their hydrocarbon reserves.
Our strong relationships with key customers, who continue to
invest through the current short-term headwinds, positions us
well for this market.
Top chemical companies have increased their decarbonization
commitments over the last year. Of S&P Global’s top-100-ranked
chemical makers (with publicly disclosed revenues), 76% have
committed to carbon neutral or net-zero goals by 2050 and 88% of
them have set interim reductions for 2030.
We’re working closely with some of the world’s largest chemical
companies to help decarbonize their operations through
energy efficiency, bio-based and recycled carbon feedstocks,
electrification, carbon capture and alternative energy sources
(e.g. low-carbon hydrogen or nuclear power).
In plastics, consumer demand and regulatory pressures in some
regions are driving investment in technologies and capacity that
will enable an increase in recycled content. We’re supporting our
customers across the asset life cycle, including materials handling
of used plastics, technology development support and engineering
services for key technologies, such as waste pyrolysis.
Fuels
Refiners have benefited from high margins and high-utilization
rates, with diesel production being particularly lucrative. While
margins reduced during the year, they remain strong from an
historical perspective and support continued investment.
In developed economies, investment is focused on decarbonizing
existing production, whereas in developing economies, investment
is also focused on adding capacity in addition to decarbonizing.
The energy transition reduces the demand for gasoline, however
the growing demand for petrochemicals means refineries need to
change what they produce.
We’re seeing an increase in refineries converting to biomass
feedstock and producing renewable diesel and sustainable aviation
fuels. BloombergNEF indicates annual growth rates of 54% in
sustainable aviation fuel and 19% in renewable diesel are expected
by 2027 via hydroprocessing pathways.
Our extensive US experience in refinery conversions and our strong
relationships with refiners in the US and Europe have given us a
leading position in decarbonizing these assets.
We’re working with our customers and leading technology
providers in new technologies and processes, (e.g. using
sustainable biomass and municipal wastes as feedstock) helping
them reach commercial scale and deploy globally.
Shipping companies are increasing the use of marine methanol to
navigate the transition toward net-zero shipping. The Methanol
Institute forecasts that lower-carbon methanol production
capacity is expected to grow to 8 million tonnes per year by 2027.
We’re collaborating with leading methanol synthesis technology
providers and biogenic CO2 producers to develop rapidly deployable
small and medium-sized standardized solutions, initially in the US.
Lower-carbon methanol projects bring together our capabilities in
carbon capture, low-carbon hydrogen and process technology.
CASE STUDY | Chemicals & fuels | Chemicals
Developing Shell’s world-scale chemical project in the US
We’re providing FEED services to expand Shell’s linear alpha
olefins (LAO) capacity in the US Gulf Coast. This will position
Shell’s Geismar facility as the largest alpha olefins producer in
the world.
The new LAO facility will use proprietary technology to add
an additional 550 tons of capacity at the Geismar facility. Our
scope includes the LAO facility, as well as supporting utilities
and infrastructure, including product logistics.
Alpha olefins are used to produce household detergents,
plastics, synthetic lubricants and drilling fluids, among other
useful products.
UN SDGs:
Business value drivers:
36
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
CASE STUDY | Chemicals & fuels
| Low-carbon fuels
Supporting bp to deliver sustainable
aviation fuels and renewable diesel
We’re supporting bp on the Kwinana, Australia, refinery
conversion to produce sustainable aviation fuel (SAF) and
renewable diesel (HVO). bp is repurposing the 65-year-old oil
refinery (previously used as a fuel import terminal), creating a
low-capital opportunity to repurpose the hydrotreating units
and infrastructure to produce SAF and HVO.
Renewable fuels are produced from sustainable bio and
waste-based feedstock such as tallow, used cooking oil and
palm oil mill effluent. Renewable feed will be imported via
both vessel unloading at the existing jetties and road tanker
unloading within the site.
We completed the optimization phase of the project and are
now completing the FEED and engineering and procurement.
UN SDGs:
Business value drivers:
37
Worley Annual Report 2023 Resources
The resources market continues to grow, driven by the demand
for metals that are essential for the energy transition, the need to
decarbonize mining operations and a desire in western economies
to bring greater diversity to the supply chain for critical minerals.
IEA’s Energy Technology Perspective 2023 estimates that
US$450 billion of global investment is required between 2022
and 2030 for mining of critical minerals to achieve the target of
the Net Zero Emissions (NZE) scenario 2030.
We continue to see strong investment in sustaining capital
across all commodities. There’s renewed confidence and
activity in greenfield projects, particularly in copper, fertilizers
and battery materials.
By the end of the decade we’ll be entering a tighter copper market.
Miners are strengthening their position in this market, evident by
the mergers and acquisitions activity across the industry. All our
major miners are focused on developing a pipeline of projects and
prioritizing spend to meet this market. Greenfield investment is
being studied and brownfield capital is being accelerated to meet
future demand. We’re currently undertaking feasibility work on
several large underground mines.
European markets have moved swiftly to decouple from the
supply of fertilizer products from Russia, which is driving strong
capital growth in phosphate production from Morocco, where
our JESA joint venture with OCP is expanding. They’re moving
to decarbonize operations and improve water stewardship and
operational efficiencies.
The major iron ore companies continue to invest in replacement
mines and associated infrastructure, with the additional spend
associated with decarbonization of assets and improved water
stewardship across operations adding to our substantial portfolio
of work with our customers in Australia.
US and EU policy settings for the critical minerals industry are
proving to be a catalyst for investment, with project developers
from across the globe positioning strongly in these markets. The
US Department of Energy has recently added copper to the critical
minerals list which will likely signal an additional shift in investment
towards this already key market. A large number of lithium refining,
active materials and recycling opportunities are coming quickly
to market. We’re well positioned to provide localized delivery
solutions to a broad cross section of customers in Europe, North
and South America, and Australia across the entire value chain,
from mine to battery recycling.
Capital investment by our key customers is growing at a faster
pace than the overall market, and our bookings indicate that we’re
increasing market share across all our target markets. A key point
of differentiation for us is our ability to offer a fully integrated
service which minimizes interfaces and provides holistic mine to
market solutions.
We have a strong presence in all dominant mining jurisdictions
across the globe. In addition, we have existing offices in key
emerging areas, presenting growth opportunities in locations
such as the Middle East, North Africa and Central Asia.
We recognize that human rights is a risk issue for the resources
sector. We manage this risk by a rigorous process of customer
selection and through our dedicated program of work on human
rights (see page 81).
We continue to see exponential growth in the fast moving
subsector of battery active materials, which are key to large
scale battery manufacturing. Importantly, we’ve taken a market-
leading position in European cathode and anode production
plants and have now successfully entered the North American
market with our innovative delivery offering. We’re working
together with our customers to help secure a supply chain of both
raw and active materials as we deliver across the entire value
chain of battery materials from mine, processing of brines and
ores, through to both cathode and anode active materials and
recycling materials.
Across commodities, we’re assisting our customers to develop
comprehensive roadmaps towards decarbonizing their operations
and most notably we’re developing innovative cost-effective hybrid
solutions to allow miners to accelerate electrification of haulage
fleets and reduce water consumption across operations.
We’re using our regulatory, environmental and water
capability to help our customers:
• decarbonize operations
• provide greater water stewardship
• invest in areas associated with their social license.
What often sets us apart from our competitors is our
ability to offer our customers environmental and water
management solutions in conjunction with providing
innovative process and process infrastructure solutions.
38
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
CASE STUDY | Resources | Low-carbon fertilizers
Setting the standard
for sustainable mining
We’ve been awarded the program management agreement
(PMA) for the entire scope of the Woodsmith Project - a
unique development comprising a mine site south of Whitby
in North Yorkshire, with a 37-kilometer tunnel to transport
a naturally occurring mineral, polyhalite, to processing and
shipping facilities in Teesside.
The mine has been designed to be sympathetic to its location
in the North York Moors National Park. The number and size
of buildings has been reduced to a minimum, which together
with extensive landscaping and planting will ensure the
site is screened and blends in with the surrounding area.
In recognition of the area’s sensitivity, mined ore will be
transported underground to the materials handling facility in
Teesside, ensuring that no mineral comes to the surface in the
protected park.
Bringing this world-class mine to fruition will help meet the
world’s ever-increasing need for food by mining polyhalite
and producing and shipping POLY4, Anglo American’s flagship
multi-nutrient fertilizer product, across the world.
POLY4 will allow farmers to maximize crop yields, increase
crop quality and improve soils with one simple product,
naturally containing four of the six most important plant
nutrients: potassium, sulphur, magnesium and calcium,
plus various micronutrients. The North Yorkshire coast
contains the highest-grade resource of polyhalite anywhere
in the world.
To support safety, efficiency and flexibility, the operations will
be integrated and automated from mine to port. The PMA
follows our involvement in the study phase of the project
and includes substantive terms to provide engineering,
procurement and construction management (EPCM) services,
which will be completed under separate agreements as the
project progresses.
We’re taking a global approach to project delivery. Our team
will be led by our people based at Anglo American’s Wilton and
Woodsmith Mine sites, with support from Stockton, Brisbane,
Santiago and South Africa.
UN SDGs:
Business value drivers:
Worley Annual Report 2023
39
39
Worley Annual Report 2023 CASE STUDY | Resources |
Energy transition materials
CASE STUDY | Resources |
Water stewardship
Unlocking one of the world’s largest
underground copper resources
Oyu Tolgoi contains one of the world’s largest known
copper-gold resources.
Our involvement with the Oyu Tolgoi Underground Project
began in April 2015, when we provided mine restart support
services. In June 2016, we were appointed to provide EPCM
services for Oyu Tolgoi’s materials-handling systems and
associated surface and underground infrastructure.
In 2023, the project celebrated the commencement of
underground production from the mine. This achievement
is testament to the collaboration of the project team to
overcome some unique challenges, including working in a
harsh work environment with sub-zero temperatures, a
complex underground scope and collaboration between a
multilingual, multinational workforce.
Supporting social license drivers was another key
achievement. The project focused on diversity targets, with
women accounting for 28% of our workforce. In addition, the
drive to maximize local resourcing resulted in over 90% of
the construction workforce being Mongolian citizens.
Once fully operational, the underground mine will be the
fourth-largest copper mine in the world, producing more
than 500,000 tonnes per annum of copper, a commodity
essential for securing a lower-carbon future.
Delivering water security for OCP
and the people of Morocco
Through our JESA joint venture, established in 2010, we
are delivering a fast-tracked desalination solution for OCP.
Morocco is facing critical water stress due to a severe
drought over the past two years. We’re working with
OCP, the world’s largest supplier of mined phosphate
fertilizer products, to deliver their industrial water needs
for the Safi and Jorf Lasfar sites and drinking water for
surrounding communities.
The first phase of the emergency water program
aims to deliver 110 million m3 per year to supply the
industrial water needs at the Jorf Lasfar and Safi sites and
supplement drinking water to El Jadida and Safi. It aims to
supply the Khouribga site with 80 million m3 per year of
desalinated water via a 200-kilometer pipeline from Jorf.
The fast-tracked program focuses on using available
capacities or quickly deployable options (e.g. containerized,
modularized skids). It maximizes the use of the existing
infrastructure in Jorf and Safi (specifically for sea water)
to feed the desalination units. It will progressively bring
capacity online.
A more ambitious water program has launched which
aims to gradually increase desalination capacities to
300 million m3 per year at the Jorf site, 200 million m3
per year at the Safi site and 60 million m3 per year in the
Laayoune region. This will secure all OCP industrial water
needs as well as urban and irrigation water for Jorf, SAFI,
Gantour and Khouribga regions by 2030.
UN SDGs:
UN SDGs:
Business value drivers:
Business value drivers:
40
Context & strategy Overview
Context & strategy
Operating & financial review
Financial statements
CASE STUDY | Resources | Biodiversity
Building large-scale biodiversity for the Iona
Island restoration project
/Iona Island has a large diversity of ecosystems, providing
an important habitat for numerous species. It’s also home to the Iona
Island Wastewater Treatment Plant (IIWWTP) and the Iona Beach
Regional Park. The causeway connecting Iona Island to Richmond has
disconnected the marine and freshwater aquatic environments. To help
re-establish this important connection, restore fish habitat and foster
ecosystem resilience to sea level rise, Advisian is:
• developing preliminary designs for 10 foreshore ecological restoration
projects, including a breach of the Iona Island Causeway, to help
restore mixing of fresh and salt water, re-establish sediment transport
processes and help migrating aquatic species, like juvenile salmon,
acclimatize to saltwater conditions
• using nature-based climate-resilient solutions to achieve the
ecological priorities for the project, help tidal habitats adapt to sea-
level rise and protect the park and the plant. Ecological priorities
are focused on the improved health of the Salish Sea and enhanced
biodiversity within the Fraser River Estuary
• collecting biophysical baseline data and preparing a long-term
monitoring plan for the ecological restoration projects.
Designing projects to be climate resilient and support biodiversity
is a challenge many of our customers are facing. We’re participating
in this large-scale project to achieve those goals, working together
with Metro Vancouver in collaboration with Musqueam Indian
Band and with guidance from academics, regulators and specialists
across Canada.
Metro Vancouver is a federation of 21 municipalities, one electoral area,
and one treaty First Nation that collaboratively plans for and delivers
regional-scale services. Its core services are drinking water, wastewater
treatment and solid waste management.
UN SDGs:
Business value drivers:
Nature-based solutions can
provide over one-third of the
cost-effective climate mitigation
needed between now and 2030
to stabilize warming to below
2°C, achieving nature’s mitigation
potential of 10-12 gigatons
of CO2 per year.
- United Nations Global Compact
41
Worley Annual Report 2023 Operating & financial review
Our value proposition
Total business is growing
Factored sales pipeline
Backlog
Aggregated revenue
42%
CAGR
12%
CAGR
8%
CAGR
Jun-21
Jun-23
Jun-21
Jun-23
Jun-21
Jun-23
As a global leader in energy,
chemicals and resources,
we leverage our knowledge,
technology and data to deliver
world-class solutions.
Increasing proportion of sustainability work gaining momentum
Factored sales pipeline
Backlog
Aggregated revenue
79%
CAGR
49%
CAGR
22%
CAGR
Jun-21
Jun-23
Jun-21
Jun-23
Jun-21
Jun-23
We’re a global business
of experts with over
48,200 people with transferable
skills across traditional and
sustainability-related work.
Earnings and margin expansion1
Market
growth
Increased
market share
Margin expansion
EBITA margins to be
within a range of
7.5-8% in FY24
(excluding procurement)
Double digit
medium-term
EBITA CAGR
ambition
We’re growing our natural
share of the market and actively
prioritizing higher margin work.
Capital management position
supports growth plans
Risk-adjusted approach and
low-risk appetite
Maintenance of strong credit ratings
Access to well-priced debt capital
Strong free cash flow for accretive reinvestment
and reduction in leverage
80% reimbursable
No material competitively-tendered lump sum
turnkey projects
We’re recognized for our ESG commitments and actions
Dow Jones Sustainability Index –
recognized as a global leader 2022
(Australia and Asia Pacific)
ISS ESG Corporate Prime Rating – upgraded from
C- to C+, which means our tradeable bonds and
shares qualify for responsible investment
Gold EcoVadis sustainability rating –
places us in top 10% of industry peers
Recognized by CDP – as a Climate
Change Supplier Engagement
Leader 2022
Climate Change Business Journal
(CCBJ) – recognized with the 2022
Industry Leadership Award for
Climate & Infrastructure
1.
All forward looking statements, including the FY2024 Group outlook, remain subject to
no material deterioration in current market conditions. See page 3 for more information.
42
Our recognition is underpinned by
sustained progress across our material
sustainability programs of work.
Operating & financial review Overview
Context & strategy
Operating & financial review
Financial statements
1. Operations
1.1 Overview
Worley is an ASX-listed company of national significance, providing
global, high-value solutions for a diverse range of end markets in
energy, chemicals and resources.
We bring our customers data- and technology-driven solutions
at every stage of the project life cycle, from initial concepts to
sustaining and enhancing their assets.
Our experience has established us as a global leader in
sustainability solutions. We’re partnering with our customers
to deliver infrastructure and integrated solutions to some of the
most ambitious, innovative and large-scale projects in the world.
Internationally, we’re a global leader in integrated gas, low-carbon
fuels and carbon capture, use and storage, nuclear power
technology design and project management delivery.
We own proprietary technology and deliver 80% of the world’s
sulphur removal facilities. We deliver these solutions, in Australia
and around the world.
We hold leadership positions across the industries we serve,
helping customers to achieve their commitments across both their
traditional businesses and their sustainability investments.
Our existing and emerging customers include multinational
energy, chemicals and resources companies. We serve regionally
and locally focused companies, national oil companies and
government-owned utilities. Our ten largest customers account
for 40% of our aggregated revenue. Of our 20 largest customers
by aggregated revenue, 85% have net-zero Scope 1 and Scope 2
targets by 2050 or sooner. This supports our ambition to partner
with customers committed to decarbonization. It also highlights
that our continued involvement in traditional markets presents
us with an opportunity to lower the carbon impact of remaining
carbon-intensive assets.
Our sectors
Energy
Producing energy from low-carbon
energy sources (e.g. gas, wind,
solar, hydrogen) and conventional
sources (e.g. oil). We also undertake
projects related to power generation,
transmission and distribution.
Chemicals
Resources
Manufacturing, processing and refining
chemicals and fuels (e.g. renewable
fuels, petrochemicals, polymers and
specialty chemicals).
Processing mineral and metal
resources, including resources that are
central to the energy transition and
resource projects related to water use
and re-use, the environment, transport,
ports and site remediation and
decommissioning.
Energy
Chemicals
Resources
Conventional energy
Low-carbon energy
Chemicals and fuels
Resources
Combustion energy
Midstream infrastructure
Offshore oil
Onshore oil
Integrated gas
Renewable energy
Low-carbon hydrogen
Nuclear power
Power networks
and energy storage
Chemicals
Low-carbon fuels
Refined fuels
Petrochemicals
Plastics recovery
Specialty chemicals
Sulphur recovery
Bulk commodities
Energy transition materials
Fertilizers
Precious metals
Resource infrastructure
Water
Decarbonization
Resource stewardship
Asset sustainability
Environment and society
Sustainability solutions support all the markets we serve
Worley Annual Report 2023
43
1.2 Business model
We generate earnings by performing professional, construction
and field-based services. We also generate earnings through
fabrication of equipment and providing procurement services. We
offer a suite of digital products and proprietary technologies. We
engage via alternative low-risk commercial models which reward
us for the value we bring. Our risk-adjusted approach and low-risk
appetite is a key differentiator for us over our competitors. We do
not competitively bid for material lump sum turnkey (LSTK) work.
Our contract types include reimbursable and fixed-price contracts.
Reimbursable contracts, 80% of our revenue in FY2023:
These contracts are based on reimbursement of reasonable and
allowable actual costs plus profits. In addition to the base profits
these contracts generate, we may earn further incentives from
creating enhanced value for the customer, depending on the
individual contract terms and conditions. When negotiating with
our customers, we’re typically able to adjust our contracts in line
with inflation and wage increases.
Fixed-price contracts, 20% of our revenue in FY2023:
• Lump sum services contracts, where we can control the
outcomes. These typically have a short duration (on average,
under six months) and would generally take into consideration
inflationary expectations.
• Lump sum engineering, procurement and construction (EPC),
typically where we’ve completed the preceding phases and are
confident of the scope. We could see an increase in these types
of contracts in the future if they present the opportunity for
higher margins while minimizing risk.
• Construction lump sum contracts. For example, some of our
construction projects are lump sum.
• Lump sum turnkey (LSTK), where we take on some of the risk
for the plant start-up and achieving normal operations. This
constitutes a very minor portion of our revenue (significantly
less than 1%). We only take on LSTK contracts when we’re
involved in the project from the start, clearly understand any
risks and are confident we can manage them.
Our diversified business
Global leader delivering
knowledge-based project
and asset services
• Leading position in energy,
chemicals and resources
• Benefiting from the
energy transition
Global earning base
and broad end-markets
provide diversification
and resilience
• High-value solutions
across the full life cycle
• Low-risk commercial
models
44
Sector aggregated
revenue (%)
Traditional / sustainability
aggregated revenue (%)
Sustainability aggregated
revenue (%)
Low-carbon energy
14%
Conventional energy 34%
Chemicals & fuels
33%
Resources
19%
Traditional energy
28%
Traditional chemicals 26%
Traditional resources
5%
Total sustainability
41%
Low-carbon energy
33%
Conventional energy 15%
Chemicals & fuels
18%
Resources
34%
Regional aggregated
revenue (%)
Type of services (%)
Contract type aggregated
revenue (%)
44%
Americas
Europe
Middle East & Africa
Asia
9%
Australia & New Zealand 10%
16%
21%
11%
Procurement
Construction &
fabrication
27%
Professional services 62%
Reimbursable
Fixed price
(excluding LSTK)
Lump Sum Turn
Key (LSTK)
80%
20%
<1%
Operating & financial review1. Operations Overview
Context & strategy
Operating & financial review
Financial statements
We have minimal direct exposure to supply chain risk as we
typically purchase materials on behalf of our customers.
Costs: Our largest costs are people, technology, reimbursable
expenses and administration, which includes office leases.
We use a controlled framework to guide and determine
the type of projects we bid and work on. This includes our
Responsible Business Assessment Standard.
Assets and liabilities: The significant items on our balance
sheet are mainly project related, such as trade receivables,
unbilled contract revenue, and provisions and borrowings.
We use a remuneration program for our Senior Leaders
(aproximately 1,100 people) to drive our strategic objectives
and transformation (see page 108).
Aggregated revenue and profit: We generate our sources of
revenue and profit from many customers. As a result, we don’t
depend on any one customer for a significant portion of our
revenue or profit. Aggregated revenue doesn’t include revenue
that has nil margin. (Revenue with nil margin typically relates to
procurement revenue where we procure on our customers’ behalf,
with no exposure to financing costs or warranty obligations.)
We include revenue attributable to associates within aggregated
revenue. We believe disclosing this revenue provides more
information about the financial results of the Group.
We hold several intangible assets, generated from previous
acquisitions. Our working capital is not capital intensive. Our
customers pay us at longer intervals than we pay some of our
expenses (for example, people). This time difference, including
the time from incurring costs to invoicing customers, makes up
the majority of our working capital requirements. During the
current growth phase of the business, additional working captial
will be invested as the volume of work increases. We continue to
maintain discipline over managing this investment.
Worley Annual Report 2023
45
45
Worley Annual Report 2023 Stavanger
Meerssen
The Hague
Arnhem
Assen
London
Cologne
Schkopau
Schwarzheide
Ludwigshafen
Kungalv
Stenungsund
Copenhagen
Ghent
Antwerp
Plzeň
Assen
Arnhem
Madrid
Cádiz
Casablanca
Aberdeen
Glasgow
Stockton
-on-Tees
Stockport
Manchester
Hull
Grimsby
Bristol
Leeds
Lowestoft
Lagos
Harare
Johannesburg
Atyrau
Fahaheel
Manama
Dubai
Sofia
Istanbul
Baku
Tashkent
Almaty
Cairo
Basrah
Al Khobar
Riyadh
Doha
Abu Dhabi
Vadodara
Muscat
Mumbai Pune
Bangalore
Kolkata
Hyderabad
Chennai
Beijing
Tianjin
Chengdu
Nanjing
Shanghai
Kuala Lumpur
Singapore
Miri
Bangkok
Kerteh
Manila
Kota Kinabalu
Kuala Belait
Jakarta
Exmouth
Kwinana
Bunbury
Esperance
Perth
Adelaide
Portland
Ararat
Geelong
Melbourne
Garbutt
Mackay
Gladstone
Brisbane
Newcastle
North Sydney
New Plymouth
Christchurch
Auckland
Hastings
Wellington
Tauranga
Whangarei
1.3 Global operations
Prudhoe Bay
Anchorage
Vancouver, BC
Cold Lake
Kincardine
Sudbury
Edmonton
Blackfalds
Chicago
Calgary
Billings Bismarck
Sarnia
Denver
Markham
Pickering
Bowmanville
Saint John
Reading
Charleston
Concord
Folsom
Oak Ridge
Los Angeles
Houston
Pasadena
Sulphur
Lakeland
Metairie
Baton Rouge
Phoenix
Mexico City
45
countries
48,200+
people
Bogotá
Chaguanas
Altamira
Lima
Belo Horizonte
São Paulo
Rio de Janeiro
Santiago
Buenos Aires
Bahía Blanca
Altamira
Altamira
Altamira
Our workforce
Employee distribution by region
Employees male / female
Americas 29.2%
EMEA
31.4%
APAC
39.4%
Male
79.2%
Female
20.8%
46
Operating & financial review1. Operations
Overview
Context & strategy
Operating & financial review
Financial statements
Stavanger
Meerssen
The Hague
Arnhem
Assen
London
Cologne
Schkopau
Schwarzheide
Ludwigshafen
Kungalv
Stenungsund
Copenhagen
Plzeň
Aberdeen
Glasgow
Stockton
-on-Tees
Stockport
Manchester
Hull
Grimsby
Bristol
Leeds
Lowestoft
Ghent
Antwerp
Assen
Arnhem
Madrid
Cádiz
Casablanca
Lagos
Sofia
Istanbul
Baku
Tashkent
Almaty
Beijing
Tianjin
Atyrau
Fahaheel
Manama
Dubai
Chengdu
Nanjing
Shanghai
Kolkata
Bangkok
Kerteh
Manila
Kota Kinabalu
Kuala Belait
Vadodara
Muscat
Mumbai Pune
Bangalore
Hyderabad
Chennai
Kuala Lumpur
Singapore
Miri
Cairo
Al Khobar
Basrah
Riyadh
Doha
Abu Dhabi
Harare
Johannesburg
Employees permanent / temporary
Permanent 74.8%
Temporary
25.2%
Jakarta
Exmouth
Esperance
Perth
Adelaide
Kwinana
Bunbury
Portland
Ararat
Geelong
Melbourne
Garbutt
Mackay
Gladstone
Brisbane
Newcastle
North Sydney
New Plymouth
Christchurch
Auckland
Hastings
Wellington
Tauranga
Whangarei
47
Worley Annual Report 2023
1.4 Review of operations
We manage operations in two regions: the Americas as one
region and the combination of Europe, Middle East and Africa
(EMEA) and Asia Pacific, Australia and China (APAC) as the other.
This structure simplifies how we engage with our customers. It
allows us to collaborate across the business and bring the best
of our capability to help our customers find solutions to their
most complex challenges. When reporting these two regions, we
disclose activities in three parts: the Americas, EMEA and APAC,
and by three sectors: energy, chemicals and resources.
This year, we’ve seen activity accelerate as customers across
all our sectors have increased their capital investments. Global
challenges such as inflation and supply chain disruptions are not
currently causing many delays to projects.
We’re focused on providing a safe work environment, both
physically and psychologically, for our office and field-based teams.
We’re investing in our people to strengthen the Worley experience
and to attract and retain critical capabilities. Meanwhile, our
people’s transferable skills and development are enabling us
to accelerate our work in new markets. Attrition and gender
disparity remain a key focus for continued improvement. For
more information on our people value driver, see page 74.
We’ve enhanced our focus on areas such as modern slavery
to combat issues all too prevalent in our industries. For more
information on our communities value driver, see page 78.
We’re well positioned as a scalable business and continue to
benefit from our cost-savings initiatives. We’ve delivered our
target of $375 million annualized savings by the end of June 2023.
FY2023 costs in relation to this program have been less than
half of FY2022.
The result for FY2023 was a net profit after tax, excluding the
post-tax impact of amortization on intangible assets acquired
through business combinations, NPATA, of $104 million, compared
with $243 million in FY2022. This was impacted by the loss on
sale of the North American turnaround and maintenance business,
including the impairment of purchased goodwill associated with
it. Underlying NPATA was $348 million for FY2023, up 6% or
$19 million on the previous corresponding period.
Our aggregated revenue increased by 21% to $10,928 million,
compared to $9,065 million in FY2022. This was supported by
growth in our regions, with the Americas aggregated revenue up by
16% and EMEA and APAC up by 21%. For more information on our
Finance value driver, see page 55.
Underlying EBITA of $635 million increased 16% compared to
the prior corresponding period, predominantly driven by margin
improvement. The underlying EBITA margin however decreased
slightly to 5.8% from 6.0% due to an increase in overall procurement
revenue which has more than doubled from FY2022 levels. Margin
excluding procurement is 6.5% at FY2023 compared to 6.4% at
FY2022, which is in line with the outlook provided at H1 FY2023.
Our sustainability-related work breakdown
Decarbonization
%
e
u
n
e
v
e
R
26%
9%
30%
10%
71%
46%
50%
24%
Resource stewardship
7%
6%
4%
4%
%
e
u
n
e
v
e
R
2
s
a
g
d
e
t
a
r
g
e
t
n
I
FY2022
FY2023
Jul-22
Jul-23
FY2022
FY2023
Jul-22
Jul-23
Revenue
Factored sales pipeline1
Revenue
Factored sales pipeline1
Environment and society
Asset sustainability
2%
2%
1.1%
0.5%
%
e
u
n
e
v
e
R
3%
2%
0.9%
0.7%
FY2022
FY2023
Jul-22
Jul-23
Revenue
Factored sales pipeline1
FY2022
FY2023
Jul-22
Jul-23
Revenue
Factored sales pipeline1
%
e
u
n
e
v
e
R
48
Operating & financial review1. Operations
Overview
Context & strategy
Operating & financial review
Financial statements
We’re working on a large-scale
biodiversity project in Canada.
See our case study on page 41.
On a proforma basis (adjusting for the sale of the North American
turnaround and maintenance business) our EBITA margin excluding
procurement was 7% at FY2023. The main drivers of EBITA
margin improvement were rate improvements and the increase of
professional services work. With disciplined pricing, we’re seeing
rate improvements continue to come through the backlog and this
trend is sustained in the factored sales pipeline.
Our rate improvements were partially offset by growth costs,
which represent ongoing investment needed as we grow the
business, and the investment spend of $37 million for our strategic
investment in targeted growth areas. This is part of a $100 million
commitment to accelerate our transformation.
Sustainability-related work has been a key driver of our growth.
In FY2023, sustainability-related work represented 41% of our
aggregated revenue. $4.5 billion of aggregated revenue was
from sustainability-related work, up from $3.2 billion in FY2022.
Sustainability opportunities represent 77% of our factored
sales pipeline (factored for likelihood of project proceeding and
being awarded to Worley). See page 26 for how we define our
sustainability-related work. We’ve partnered with customers
committed to decarbonization and we’ve embedded mitigating and
adapting to climate change in the way we deliver work. For more
information on our environment value driver, see page 67.
The statutory operating cash flow is $260 million versus the
FY2022 operating cash flow of $316 million. Our cash conversion
is 86.6% (adjusted to include working capital recovery for the
1-month post-completion of the North American turnaround and
maintenance business divestment, $43 million, and prepayment
of software costs $25 million), which is in our 85% to 95% target
range. The days sales outstanding (DSO) fell by 0.3 to 63.0 days
over FY2023.
Our capital management strategy is structured around funding
our growth and delivering increased value to our shareholders.
We’ve maintained our strong financial position through stronger
liquidity, longer debt duration with lower maturity towers and a
stable cost of debt capital. Our leverage is 2.2 times, down from
2.5 times at 30 June 2022 and is at levels supportive of future
growth. We issued a new $350 million sustainability-linked bond,
and we renewed our syndicated debt facility at an improved
corporate margin.
Our leading indicators show continued momentum. Our backlog
and factored sales pipeline are increasing. Backlog is $14.1 billion,
up 14%, compared to $12.4 billion at 30 June 2022 (excluding the
sale of the North American turnaround and maintenance business).
Sustainability backlog has increased by 56% from FY2022. We’ve
seen key projects progress to later phases, and we continue to
win work in line with our expectations. Our factored sales pipeline
(factored for likelihood of project proceeding and being awarded to
Worley) is up 58% in FY2023.
49
Worley Annual Report 2023 1.5 Significant changes in operations
Active portfolio management – sale of North American
turnaround and maintenance business
We sold our turnaround and maintenance business in
North America, part of Worley North American Field Services,
to CAM Industrial Solutions. Our North American construction
and fabrication business was not included in the sale. For more
information on our equipment and fabrication value driver,
see page 65.
The North American Field Services turnaround and maintenance
business was our operating and shutdown maintenance craft work
(non-professional services) in the USA and Canada. This business
predominantly supported oil refineries and petrochemical plants,
with most of its revenue derived from traditional work.
The transaction reflects our commitment to actively managing our
portfolio in line with our ambition and purpose. This supports our
strategy of delivering high-value solutions in growth markets and
our ambition to grow our revenue from sustainability-related work.
Changes to the Group Executive, effective 1 July 2023
To maintain a leading position across our markets and continue to
deliver projects at the scale and pace required to meet the needs of
our customers, we must think differently about how we deliver the
work we do for them. Geeta Thakorlal will move into a role to drive
transformational project delivery, including using technologies,
such as rapidly emerging generative AI capabilities.
Anup Sharma will take on the role of Executive Group Director,
Information and Digital Delivery, effective 1 July 2023. Anup brings
a deep understanding of the information technology and digital/
data landscape. He has a track record of leading high-performing
teams and has been successful in driving digital innovation.
In FY2023 we saw a significant increase in sole-sourced
work, demonstrating the confidence our customers have in
our capabilities and experience.
We’re being recognized for the value we bring. We’re increasing
value through effective project delivery, increasing automation
and digitization, and streamlined operations. We use our
depth of experience and extensive resources across multiple
sectors and technologies to deliver integrated solutions and
complex projects at scale.
We’ve made progress on our Scope 1 and 2 commitments,
achieving an 14% reduction in our Scope 1 and Scope 2 emissions
from FY2022. We’ve also strengthened our ESG disclosures in
line with leading practice. For more information on our own ESG
performance, see page 51.
Our headcount is 48,223 people, and we have a presence in
45 countries, compared with our 51,000+ people across 46 countries
as at 30 June 2022. Our headcount was impacted by the sale of
the North American turnaround and maintenance business. Our
professional services headcount is up 15% from FY2022.
Our Global Integrated Delivery (GID) grew by 23% in FY2023.
Our GID team in India work on projects all over the world and
seamlessly transition between projects. GID combined with
increased levels of automation are allowing us to achieve high
rates of utilization and consistently high-quality work. For more
information on our knowledge, technology and data value driver,
see page 59.
Women make up 20.8% of our workforce and we have specific
gender targets we continue to consider and progress (see page 77).
Our commitment to human rights encompasses our people and
those we partner with in our supply chain and the communities in
which we operate (see page 80).
Business continuity and resilience
The nature and breadth of our business mean that we are exposed
to situations that impact the well-being of our people, disrupt
our business and could stop us achieving our strategic objectives.
We support our people and business to address situations of
uncertainty, including natural disasters and geopolitical conflict.
Our R3 (Ready, Response and Recovery) management system
helps us to protect our people and maintain business continuity
in the face of major disruption events. Our R3 systems includes
a dedicated intelligence function to increase our geopolitical
insight and enhance our risk management focus on disruptive
events, including cybersecurity threats. We commit to extensive
training of our multiple response and recovery teams to make
sure we’re prepared to address the vast array of foreseeable
and unforeseen incidents.
50
Operating & financial review1. Operations Overview
Context & strategy
Operating & financial review
Financial statements
2. ESG performance summary
In this chapter, we summarize our ESG performance.
Our website provides a detailed view of our
ESG approach.1
Through our ESG approach, we seek to make a
positive impact on people and the environment,
and operate responsibly.
We’ve made good progress in the past year.
We increased our ambition on Scope 1 and Scope 2
emissions and are working to decouple these
emissions from our energy usage.
We’re also focused on other areas, such as our
commitment to phase-out the provision of single-
use plastics in our offices and our nature roadmap.
Our people are integral to solving these challenges,
both for our business and for our customers.
We consider them central to how we create value.
Sue Brown
Executive Group Director,
Sustainability
1.
Our website provides a full view of our ESG performance. This includes
disclosures to a range of voluntary reporting frameworks, such as the Global
Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures
(TCFD) and CDP.
Visit the website at: worley.com/sustainability
51
Worley Annual Report 2023
2.1 Environment
We are committed to sustainable practices, support of the Paris Agreement and being a leader in
our industries.
Our net-zero roadmap for Scope 1 and Scope 2 emissions
)
h
W
M
(
e
g
a
s
u
y
g
r
e
n
E
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
C
a
r
b
o
n
e
m
i
s
s
i
o
n
s
(
t
C
0
2
e
)
120,000
100,000
80,000
60,000
40,000
20,000
0
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
How we’re transforming to be net zero1
Financial year end
Energy remaining to decarbonize
Electrification with lower-carbon energy
Certified carbon credits
Renewable energy switching
Fuel switching
COVID-19 impact2
Net total carbon emissions
Energy efficiency and office consolidation
Progressing climate action
Environmental performance
Our Climate Change Position Statement (CCPS) sets out our
response to climate change. Our net zero journey is well underway
and we’ve reduced our Scope 1 and Scope 2 greenhouse gas (GHG)
emissions by 14% over the past year, and by 64% since our baseline
year. We’ve continued our focus on energy efficiency and procuring
renewable energy. This has allowed us to start decoupling our
emissions from our energy usage.
Over the next few years we’re focusing on decarbonizing the more
challenging elements of our business, such as our vehicle fleet.
Achievement of this is subject to some uncertainties, such as the
availability of electric vehicles where we operate (see page 68).
Acting on nature
In support of the recent Kunming-Montreal Global Biodiversity
Framework, we’ve outlined a roadmap to supporting biodiversity
and nature in our project work and business more broadly.
The roadmap considers activities where we have a material
impact on nature and includes our commitment to phase-out
the provision of single-use plastics in our offices. It covers both
our own operations and how we deliver work for our customers
(see page 71).
We’ve provided a summary of our own environmental performance
below. For detailed information, please visit our website.
Indicator3
Energy use
FY2022
FY2023
Change
Energy use (MWh)
212,345 211,640
Energy productivity ($ million revenue / GWh)
42.7
51.6
-0.3%
+21%
Scope 1 and Scope 2 GHG emissions
Scope 1 emissions (tCO2e)
Scope 2 emissions4 (tCO2e)
Scope 1 + Scope 2 emissions (tCO2e)
Scope 3 GHG emissions
Upstream Scope 3 emissions (tCO22e)
Downstream Scope 3 emissions (tCO2e)
Total Scope 3 emissions (tCO2e)
Nature and biodiversity
Total water withdrawals (ML)
Water withdrawals in regions of significant
water scarcity risk5 (ML)
Total waste recycled (t)
Total waste via waste-to-energy (t)
Total waste to landfill (t)
22,238
22,334
+0.4%
25,973
19,088
48,211
41,422
578,417 781,213
7,433
10,794
585,850 792,007
592
134
5,404
1,855
8,470
539
128
3,423
1,415
8,281
-27%
-14%
+35%
+45%
+35%
-9%
-4%
-37%
-24%
-2%
1. Our net-zero roadmap contains forward-looking statements, including estimates of our future energy use. These statements are not guarantees or predictions of future
performance or outcomes. Refer to our disclaimer (see page 3).
Over 2021 and 2022, a significant portion of our workforce was working from home due to COVID-19 restrictions. This reduced our Scope 1 and Scope 2 emissions.
2.
3. We disclose the reporting criteria for select metrics in our sustainability basis of preparation.
4. Scope 2 emissions are disclosed as market-based Scope 2 emissions. We also disclose our location-based Scope 2 emissions, see our CDP submission.
5. Significant water risk is defined as areas with high or extremely high baseline water stress, according to the World Resources Institute Aqueduct Water Risk Atlas tool.
52
Operating & financial review2. ESG performance summary
Overview
Context & strategy
Operating & financial review
Financial statements
2.2 Social
Holistic safety, health and well-being
This year, we recorded strong physical safety performance.
We received several safety awards in FY2023, including:
• the Chevron Commitment to Safety Award from their
OASIS Program in the US
• the Royal Society for the Prevention of Accidents (RoSPA) Gold
Award for our acrylics / oxo-alcohol project in India, and Worley
Field Services in the UK
• the Land Transport Authority (LTA) of Singapore Safety Award
at the Safety, Health and Environment Convention 2022.
We’re embedding psychosocial factors into our existing health
and safety framework, and we align with ISO 45003 psychological
health and safety at work standard. We see this as essential to
building a safe and healthy workforce. Psychosocial safety will
continue to be a priority through FY2024, and we will give our
people the tools and culture to help manage this.
We’re also acting on sexual harassment. Guided by the Australian
Respect@Work framework, our Respect at Work project focuses
on preventing and responding to sexual harassment and harmful
behaviors (see page 77).
Transforming our workforce
Labor, employment, inflation and skills shortages continue to
impact our sectors. We remain focused on attracting the right
people and providing the right experience.
To meet the growing demand for sustainability-related work,
we’re investing in our people, particularly their digital and
sustainability-related competencies. In February, we invested
in a new e-learning program to help our people expand their
knowledge and capabilities (see page 76).
We’re also continuing to focus on gender diversity and are making
progress toward our FY2025 targets. We’ve maintained our
performance in the Board and Group Executive but have not been
successful with increasing the percentage of our women Senior
Leaders (see page 77).
We’re now targeting specific areas to strengthen our processes
and pipeline. We also remain focused on progressing cultural
diversity and reconciliation in the countries where we operate.
Elevating human rights and modern slavery
This year, we’ve introduced a dedicated program of work on
human rights and modern slavery. We’ve set up an Executive
Human Rights and Diversity and Inclusion Committee. We’ve
also developed a business and human rights framework which
translates the UN principles into action.
We’re proud to take part in the UN Global Compact Business and
Human Rights Accelerator Program. This is a six-month program
to support our commitment to human rights and labor rights and
to establish human rights due diligence processes (see page 81).
Social performance
We’ve provided a summary of our own social performance below.
For detailed information, please visit our website.
Indicator1
Safety
Total Recordable Case Frequency Rate (TRCFR)
Lost Workday Case Frequency Rate (LWCFR)
Serious Case Frequency Rate (SCFR)
Fatalities
People development
Digital learning accreditations issued (total)
Sustainability learning accreditations issued
(total)
Workforce training on data privacy (% of total
workforce)
FY2022
FY2023
Change
0.16
0.04
0.06
0
0.14
0.03
0.03
1
-0.02
-0.01
-0.03
+1
21.7k
10.5k
41.8k
44.7k
+93%
+326%
85
98
+13
Gender2
Board composition (%)
Group Executive (%)
Senior Leaders (%)
Graduate intake (%)
Total workforce (%)
33
45
16
47
33
45
16
48
18.6
20.8
-
-
-
+1
+2.2
We provide demographic and employment data on page 46 of
this report.
1.
2.
We disclose the reporting criteria for select metrics in our sustainability basis of preparation.
We have a suite of FY2025 targets to improve our gender performance. For the purposes of our gender diversity targets, we report the percentage of women only.
Our HR system of record does, in some locations, track non-binary status. See page 77 for more information.
53
Worley Annual Report 2023 2.3 Governance
Our sustainability governance framework helps us provide strong governance over
sustainability-related matters.
The Worley Board is responsible for the ESG governance of Worley Group. Our governance systems and operational controls ensure we
operate lawfully, ethically and responsibly.
Worley Board
The Worley Board is responsible for the governance
and oversight of Worley Group. The Board has adopted
appropriate charters, codes and policies, and established
a number of committees to discharge its duties.
t
i
d
u
a
l
a
n
r
e
t
n
I
Audit and
Risk Committee
Nominations
Committee
People and
Remuneration Committee
Health, Safety and
Sustainability Committee
Chief Executive Officer
Executive Health,
Safety and Sustainability
Committee
Executive Human Rights
and Diversity and Inclusion
Committee
Our Code of Conduct, Risk
Management Framework,
policies and standards
help set our approach and
manage risk.
Our leadership councils,
working committees and
People Network Groups drive
the change needed to realize
our purpose.
Our purpose, values and behaviors underpin our approach.
We report our performance transparently as part of annual reporting.
This constitutes our communication of progress to the United Nations
Global Compact, to which we have been a signatory for 13 years.
We also publish thematic and jurisdiction-specific reports on certain
issues including modern slavery and gender equality.
See our Corporate Governance site, Corporate Governance Statement
and website for more information.
Our Group’s ESG performance is governed at Board level.
All standing committees have clearly defined remits and
charters. All Committees interface with ESG-related topics.
In particular, the Health, Safety and Sustainability Committee
governs the Group’s health, safety and sustainability
performance. We introduce the individuals who make
up the Board and their sustainability competencies in
our Corporate Governance Statement.
t
i
d
u
a
l
a
n
r
e
t
x
E
Continuing our focus on ethics and integrity
This year, we ran our Code of Conduct refresher training.
This reinforces our zero-tolerance approach to bribery, fraud,
corruption and modern slavery. It also outlines our data privacy
obligations and how to identify and report modern slavery
concerns and sexual harassment.
The code is available in 16 languages and applies to everyone,
including employees, Board members and representatives of the
company, including contractors and part-time employees.
We’ve also updated our Supply Chain Code of Conduct to cover
a range of sustainability-related topics. We expect the same
standard from our suppliers that we apply to ourselves.
Governance performance
We’ve provided a summary of our own governance performance
below. For detailed information, please visit our website.
Indicator
Code of Conduct
FY2022
FY2023
Change
Code of Conduct training completion (total)
40,000+ 43,800+
+3,800
Ethics helpline
Reports in progress
Reports partially or fully substantiated
Reports unsubstantiated
Total reports
Due diligence checks
Customers
Suppliers
Other partners1
30
61
89
180
13
70
117
200
-17
+9
+28
+20
4,335
6,660
83
4,313
5,498
112
-0.5%
-17%
+35%
This year, independent third-party auditors have provided limited
assurance on our select ESG performance metrics (shown below).
This has been done in accordance with the International Standard
on Assurance Engagements ISAE 3000. This includes:
• diversity (women employees, women Senior Leaders, women
Group Executives, women Board members)2
• safety (TRCFR, LWCFR, SCFR)2
• environmental (energy use, Scope 1 and Scope 2 greenhouse
gas emissions)2.
All our sustainability disclosures undergo a comprehensive internal
preparation, verification and approval process. We have adopted
a process to verify material statements in these documents
before they are released to the market. This includes a process
to verify key pieces of non-financial information as well as having
management review and sign-off prior to Board approval.
1. Due diligence checks on other partners, such as agents, joint ventures and sponsorship opportunities.
2. We disclose the reporting criteria for select metrics in our sustainability basis of preparation.
54
Operating & financial review2. ESG performance summary
Overview
Context & strategy
Operating & financial review
Financial statements
3. Performance
In this section, we provide a review of performance against the business value drivers shown below. Our value map (see page 22) shows
the definitions of our business value drivers and their relevance to our business.
3.1 Finance
3.4 Environment
Active capital management from diverse and
competitive sources, driving business growth
and value for our investors (see below).
The natural resources we use and the work we do,
together enabling us to steward environmental
sustainability for our customers and our business
(see page 67).
3.2 Knowledge, technology and data
3.5 People
What we know – our brand, execution methodologies,
intellectual property, data, technology, knowledge and
insights – together driving efficiency and productivity
(see page 59).
Energized and empowered people with the capability
and experience to deliver our purpose
(see page 74).
3.3 Equipment and fabrication
3.6 Communities
Manufacturing, constructing, operating and
maintaining equipment and assets for the energy,
chemicals and resources sectors (see page 65).
Strong relationships within our sectors – with our
people, customers, investors, communities and
governments – building trust and license to operate
(see page 78).
3.1 Finance
Our finance business value driver refers to active capital management from diverse and competitive
sources, driving business growth and value for our investors.
The following table shows the reconciliation of the underlying earnings before interest, tax and amortization on intangible assets we’ve
acquired through business combinations (EBITA) and underlying net profit after tax and before amortization of intangible assets acquired
through business combinations (NPATA) results to the EBITA. It also shows NPATA attributable to members of Worley Limited.
These three measures are the key to understanding our results:
1. aggregated revenue
2. EBITA (earnings before interest, tax and amortization) and
3. NPATA (net profit after tax and before amortization) attributable to members of Worley Limited.
55
Worley Annual Report 2023 EBITA
Costs in relation to cost saving programs
Loss on sale of disposal group and related expenses
Net impact of historical legal matter
Impact of withdrawal from Russia
All other items
Total of underlying adjustments to EBITA
Underlying EBITA
Net finance costs
Income tax expense
Net tax expense on items excluded from underlying earnings
Tax on acquired intangibles
Underlying tax adjustments
Non-controlling interests
Underlying NPATA attributable to members of Worley Limited
Total of underlying adjustments to EBITA
Net tax expense on items excluded from underlying earnings
Underlying tax adjustments
Amortization of acquired intangible assets
Tax on acquired amortization
NPAT attributable to members of Worley Limited
1. Aggregated revenue
FY2023
$m
10,928
FY2022
$m Comments
9,065 We define aggregated revenue as:
• our revenue and income calculated
in accordance with relevant
accounting standards
• plus our share of revenue earned by
our associates
• less procurement revenue at nil margin,
pass-through revenue at nil margin and
interest income.
EBITA means earnings before interest,
tax and amortization on intangible assets
acquired through business combinations.
2. EBITA (statutory)
345
449
(underlying)
635
547
3. NPATA (statutory)
104
243 NPATA means net profit after tax and before
amortization on intangible assets acquired
through business combinations.
(underlying)
348
329
56
FY2023
$m
345
50
240
–
–
–
290
635
(110)
(100)
(46)
(22)
–
(9)
348
(290)
46
–
(89)
22
37
FY2022
$m
449
67
–
16
14
1
98
547
(60)
(117)
(12)
(24)
–
(5)
329
(98)
12
–
(95)
24
172
Movement
Our aggregated revenue increased by 21%
in FY2023 when compared with that in
FY2022, driven by volume growth across all
three regions.
Our statutory EBITA decreased by 23%
in FY2023 when compared with that
in FY2022, driven by one-off impact of
the divestment of the North American
turnaround and maintenance business,
including the impairment of purchased
goodwill associated with it.
Our underlying EBITA increased by 16%
in FY2023 when compared with that in
FY2022, driven by professional services in
our business mix increasing and a continuing
improvement in rate.
Our statutory NPATA decreased by 57%
in FY2023 when compared with that in
FY2022.
Our underlying NPATA increased by 6%
in FY2023 when compared with that in
FY2022.
Operating & financial review3. PerformanceFinance
Overview
Context & strategy
Operating & financial review
Financial statements
3.1.1 Operating performance
Americas
The Americas region, comprising the United States, Canada and
Latin America, reported aggregated revenue of $4,846 million and
segment EBITA of $297 million (FY2022: aggregated revenue of
$4,187 million and segment EBITA of $271 million). The Americas
EBITA increase was driven by an improved second half with a ramp
up of key projects and improved margins in professional services
from the first half. The segment margin excluding procurement
decreased to 6.6% from 6.7%. The Americas margin excluding North
American turnaround and maintenance business is 7.8%.
EMEA
The Europe, Middle East and Africa region reported aggregated
revenue of $4,023 million and segment EBITA of $329 million
(FY2022: aggregated revenue of $3,168 million and segment EBITA
of $283 million). The segment margin excluding procurement
increased to 10.0% from 9.7% due to an increase in the mix towards
professional services.
APAC
The Australia, Pacific, Asia and China region reported aggregated
revenue of $2,059 million and segment EBITA of $222 million
(FY2022: aggregated revenue of $1,710 million and segment EBITA
of $181 million). The segment margin excluding procurement
increased to 11.4% from 11.3% due to rate improvements.
$m
%
$m
%
%
$m
%
$m
%
%
$m
%
$m
%
%
Aggregated
revenue
Contribution
to Group
aggregated
revenue
Segment
EBITA
Segment
margin
Segment
margin
(excluding
procurement)
Aggregated
revenue
Contribution
to Group
aggregated
revenue
Segment
EBITA
Segment
margin
Segment
margin
(excluding
procurement)
Aggregated
revenue
Contribution
to Group
aggregated
revenue
Segment
EBITA
Segment
margin
Segment
margin
(excluding
procurement)
FY2023
4,846
FY2022
4,187
Variance%
15.7
44
46
297
6.1
6.6
271
6.5
6.7
9.6
FY2023
4,023
FY2022
3,168
Variance%
27.0
37
35
329
8.2
10.0
283
8.9
9.7
16.3
FY2023
2,059
FY2022
1,710
Variance%
20.4
19
19
222
10.8
11.4
181
10.6
11.3
22.7
57
Worley Annual Report 2023Finance 3.1.2 Sector performance
Energy
The energy sector reported aggregated revenue of $5,192 million
and segment EBITA of $360 million (FY2022: aggregated revenue
of $4,477 million and segment EBITA of $327 million). The sector
benefited from market growth due to global energy security
requirements and sustainability-related investments. The
segment margin excluding procurement is 7.6% and remains
steady on the prior period.
Chemicals
The chemicals sector reported aggregated revenue of $3,645
million and segment EBITA of $318 million (FY2022: aggregated
revenue of $3,308 million and segment EBITA of $302 million). The
sector delivered steady EBITA growth of 5% with the the segment
margin excluding procurement decreased to 9.3% from 9.5%, driven
by project mix.
Resources
The resources sector reported aggregated revenue of $2,091
million and segment EBITA of $170 million (FY2022: aggregated
revenue of $1,280 million and segment EBITA of $106 million). The
segment margin excluding procurement increased to 10.9% from
9.4%. The resources sector margin improvement was driven by
project performance in EMEA, and rate improvements with higher
volumes of professional services during the year.
FY2023
5,192
FY2022
4,477
Variance%
16.0
48
49
360
6.9
7.6
327
7.3
7.7
10.1
FY2023
3,645
FY2022
3,308
Variance%
10.2
33
37
318
8.7
9.3
302
9.1
9.5
5.3
FY2023
2,091
FY2022
1,280
Variance%
63.4
19
14
170
8.1
10.9
106
8.3
9.4
60.4
$m
%
$m
%
%
$m
%
$m
%
%
Aggregated
revenue
Contribution
to Group
aggregated
revenue
Segment
EBITA
Segment
margin
Segment
margin
(excluding
procurement)
Aggregated
revenue
Contribution
to Group
aggregated
revenue
Segment
EBITA
Segment
margin
Segment
margin
(excluding
procurement)
$m
%
$m
%
%
Aggregated
Revenue
Contribution
to Group
aggregated
revenue
Segment
EBITA
Segment
margin
Segment
margin
(excluding
procurement)
58
Operating & financial review3. PerformanceFinance Overview
Context & strategy
Operating & financial review
Financial statements
3.2 Knowledge, technology and data
Our knowledge, technology and data business value driver refers to what we know – our brand,
execution, methodologies, intellectual property, data, technology, knowledge and insights –
together driving efficiency and productivity.
Our standards and integrated processes enable us to provide consistent and insightful solutions to our customers. We have over
48,200 people to develop, analyze and deliver leading solutions. As our teams engage with our customers, we actively work to identify
opportunities to innovate and deliver value.
K
n
o
w
l
e
d
g
e
,
t
e
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h
n
o
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o
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y
a
n
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d
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t
a
We leverage our global knowledge, technology and data to bring value for our
customers anywhere in the world.
Knowledge and advisory
We’re providing expert solutions
focused on solving complex
challenges.
• We create value from the
knowledge we gain across
thousands of engagements
and projects each year.
• We provide insights across the
full asset life cycle, from market
and technology analysis to
early-stage project development,
asset optimization and
repurposing/remediation.
• Our knowledge is delivered as
studies, reports, engineering
and integrated solutions
to drive project delivery.
Technology
We’re building on our process
technology intellectual property (IP)
portfolio in growth sectors to support
overall business growth.
• Our Comprimo® business brings
more than 60 years of proven
experience and expertise in
developing, applying and managing
sulphur removal technology.
• Through Chemetics® we offer
technology and solutions for
sulphuric acid and other specialty
chemicals facilities.
• We build, scale, invest and partner
with others in new ventures that
have the potential to transform the
way we work today.
Digital and data analytics
We’re enhancing our digital
technology to create high-value
solutions, enhance quality and drive
margin improvement.
• We provide integrated,
data-centric delivery platforms.
• We’re increasing productivity
through process automation bots.
• We’re developing artificial
intelligence tools to drive smart and
repeatable engineering solutions.
• Our digital products help our
customers improve their project
and operational performance
and reduce their safety and
environmental risk.
Cybersecurity
Protecting our own and our customers’ data safeguards
the value we bring. Our Information Security Management
System is ISO 27001 certified.
We’ve based our strategy on the National Institute of
Standards and Technology (NIST) Cyber Security Framework
and the Australian Cyber Security Centre Essential Eight
Maturity Model.
59
Worley Annual Report 2023
a
t
a
d
d
n
a
y
g
o
l
o
n
h
c
e
t
,
e
g
d
e
l
w
o
n
K
3.2.1 Knowledge and advisory
We use our collective knowledge, gained from thousands
of engagements and projects each year, to create value for
our customers.
The energy transition and other macro-trends are transforming
our customers’ organizations. We’re enhancing our collective
knowledge to meet our customers’ needs through this
transformation. See page 75 for how we’re upskilling our
global team, helping them to drive impact.
Management and Knowledge Systems
Our people’s knowledge and experience is our most valuable
intangible asset. We capture and store these assets in our
Management and Knowledge Systems.
Our Management System tells us “what to do”, and our Knowledge
System tells us “how to do” the work. This includes our standards
and policies, go-bys and lessons learned. We have over 2,500
lessons in our lessons learned library and over 18,000 documents
in our go-bys library.
Our Management System provides us with a robust framework
of controls. Our new Scalable Engineering solution allows us to
scale the requirements in the Management System to match the
complexity of each project. Our Management System is ISO 9001
certified and compliance with this system is mandatory for all our
projects and operations.
In FY2023, we delivered refresher training of our Management
and Knowledge Systems to over 4,600 of our leaders. Our
leaders play a significant role in driving the right behaviors to
achieve consistency and standardization across our projects
and operations. Additionally, our people contributed over 500
improvement suggestions this year, supporting the continued
enhancement of our systems.
Project delivery
Our project delivery capability is flexible enough to accommodate
small-scale through to multi-billion dollar projects.
Our past performance shows our ability to deliver projects for
customers facing a variety of challenges. These include tight
schedules and remote sites where we’ve needed to consider
environmental and technological factors. See page 68 for how
we’re embedding Sustainable Design into all our projects.
We’re delivering some of the most complex projects in the world,
using cutting edge digital tools and fast-tracked project delivery.
This year, we delivered the Brunsbüttel floating LNG import
terminal in Germany in under nine months. This was from contract
award through to first gas. Ordinarily, a fast-tracked project of this
type would take 18 to 24 months. Using innovative project delivery
and digital tools, we delivered this significant achievement of ultra
fast-tracked delivery for our customer. The fabricated modular
elements for this project were completed within our Rosenberg
facility (see page 66).
60
Advisian
Our Advisian business comprises more than 2,000 consultants,
scientists, strategists and engineers all dedicated to solving the
world’s critical infrastructure, environmental, energy and resource
challenges. By seeing things from a different perspective, Advisian
enhances our ability to serve our customers. We leverage this
knowledge anywhere in the world through our global talent pool
and integrated data platforms.
Engineering
Our people are central to what we do
Our engineers have fungible skills, enabling them to work across
both traditional and sustainability-related work. We have strength
across a diverse range of engineering disciplines. We also have
established centers of excellence throughout the globe which we
use to deliver specific expertise on any project in the world.
We’re continually investing in our people to build on their
capabilities and deliver sustainable outcomes (see page 75).
This year, we’ve made it easier for people across the business
to gain access to and connect with our subject-matter
experts (SMEs) through our digital platforms. We have over
400 people identified as SMEs across a variety of traditional
and sustainability-related areas.
We’re standardizing and automating our engineering
Engineering standardization is the path to repeatable design, with
less effort and better quality. This approach uses our intellectual
property and knowledge assets to standardize project delivery
across different markets and work types.
Our partnership publication with Princeton highlighted
standardization as a paradigm shift required to meet the pace and
scale of delivering net zero (see page 78).
We have several initiatives to increase standardization, including
cataloging our knowledge. This year we cataloged several historic
designs in the form of building blocks to enhance the reference
data used by our design teams. An example of this was cataloging
our copper concentrator designs.
We’re also increasing the use of our Replic8 software which mass
produces engineering deliverables, solving the challenge of “design
one, build many”, see below for more details. We now have a
catalog of over 100 automation bots deployed across our projects,
driving efficiencies through automation. We also plan to use
artificial intelligence to improve search functionality to identify the
appropriate standardized approach for each project.
RoSPA Gold Award 2023Our acrylics/oxo-alcohol project in India won a RoSPA Gold Award in 2023, one of the most prestigious and internationally recognized awards in the field of occupational health and safety. This project was delivered with over 25 million safe work hours.Operating & financial review3. Performance
Overview
Context & strategy
Operating & financial review
Financial statements
Global Integrated Delivery
Our Global Integrated Delivery (GID) team in India enables us to
ramp up quickly in response to customer demand. It is a central
place where teams of talented engineers and designers help to
complete hundreds of projects around the world. They are an
extension of our home office teams who usually oversee the
project. We use a number of digital tools to offer connected
delivery between multiple locations. Our GID also improves our
overall productivity and utilization, with engineers quickly moving
from project to project.
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people in our India offices, up from 5,600+ in last year
7.8 million+
FY2023 GID hours, up from 6.6 million in FY2022
4,500+
projects supported via GID working with over 95 other home
offices in FY2023
Members of the Information & Digital Delivery leadership
team at the Gartner Symposium in Orlando, Florida.
Worley Annual Report 2023
Worley Annual Report 2023
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Replic8A robotic process automation tool to drive smart engineering solutionsReplic8 automates the mass reproduction of similar deliverables. The tool can achieve up to 60% schedule improvements and 30% reduction in total installed cost. By reducing the time and risks from manual, repetitive tasks, our customers save significant costs allowing us to share in the value created and increase our competitive edge.In the last 12 months, Replic8 has delivered:• 60,000+ drawings• 3 million+ updated data points• 50,000+ hours saved.“It’s not the nimble speed to market or the notable reduction in cost that impresses us as much as the absolute quality achieved with Replic8 techniques executed by Worley project teams.” - Worley customer
Our value delivery approach is centered on identifying industry
challenges, developing innovative technology and delivering
tangible solutions in the form of proprietary processes, equipment
and plants. To meet the new and evolving needs of our customers,
we evaluate how to expand and diversify our technology portfolio
with novel solutions. This is a natural way to further monetize
our expertise.
For example, we’ve continued to develop our pseudo dry gas
technology through FY2023, and we expect this technology
will be ready for commercial deployment in FY2024.
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3.2.2 Technology
Technology solutions
Energy systems continue to change and consumer demands are
shifting. In an ever-evolving world, meeting global sustainability
goals requires us to continually develop our technology. Through
our technology business, ventures and products, we provide
solutions that transform challenges into opportunities. Our suite
of technologies turn ideas into reality and support our customers
from conception to completion and beyond. By diversifying
operations and emphasizing technology development, we
empower our customers to work more efficiently and adapt
to change.
Our Chemetics® and Comprimo® businesses are crucial in our
efforts, delivering proprietary technology solutions to multiple
sectors worldwide. For more than 60 years, we’ve used our
technologies to reduce environmental impacts and health
concerns associated with sulphur emissions by converting them
into essential products. More than 60% of the existing sulphur
recovery units across the world carry a Worley Comprimo® design
license. Reducing sulphur emissions has important implications,
such as reducing acid rain and respiratory illnesses, and improving
air quality. We’ve provided ongoing support for decades to ensure
optimum performance and longevity, enabling our customers to
benefit from our solutions in the long term.
152
number of active patents
6,600+
metric tons per day of SO2 emissions prevented
from entering the atmosphere from new
licenses sold in FY2023
5,000+
globally installed units of Chemetics
proprietary equipment
Our proprietary sodium chlorate electrolyzer,
which produces green hydrogen as a by-product.
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Comprimo® awarded licensor services for onshore gas plantComprimo® has been awarded licensor services to deliver gas treating and sulphur recovery technology by PTTEP HK Offshore Limited for its new Onshore Gas Plant. This new plant will be part of the Sarawak integrated sour gas evacuation system project in Bintulu, Sarawak, Malaysia.The services will be provided by our teams in the UK and the Netherlands, with support from our GID team.Operating & financial review3. Performance
Overview
Context & strategy
Operating & financial review
Financial statements
3.2.3 Digital and data analytics
Our data-centric and digital technology-enabled future helps connect
assets and improve the efficiency and speed of project delivery. We
continue to focus on standardization, integration, automation and
efficiencies across processes, tools and technology.
An example of this is our project in a box (PiB) approach. This is
an automated configuration methodology for our digital tools,
reducing project initiation set-up time by up to 40%.
A global engineering software boot camp was held in April this
year, using an innovative repeatable learning approach developed
in collaboration with a software provider. This increased our
capability globally to deploy and sustainably scale to meet
current and future project demand.
Joe Bonett, Group Director, Engineering, spoke at a San Francisco conference in
November 2022. He spoke about our journey of delivering a more sustainable
world through our evolving digital thread.
We have more than 100 project information management (PIM)
practitioners working across our projects. We’re using a learning
and development framework to position our PIM capability as a
competitive advantage.
Digital innovation
Our digital innovation team uses emerging technologies to solve
business problems. We’re using an established framework,
internal expertise and technology partners to add value to our
customers. Since its inception in January 2023, the team has
completed four internal pilots and minimum viable product
development for new technology.
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Our Digital Experience Center was a key focus this year. We have
teamed up with strategic technology partners to develop digital
solutions in sustainability, new energy and data-centric delivery.
We cover areas such as:
• Asset Optimization Center (AOC)
• WorleyVerse, which applies gaming-grade visualization along
with physics and chemistry models for design simulation
• end-to-end data-centric execution from engineering to
operational support
• smart contracts to support digitalization of various
contract-based use cases
• drones and AI technologies for progress measurement
and HSE support
• generative AI and its applicability for EPCM.
This year, we developed 21 new automation bots to add to the
nearly 100 active bots available for use in our newly upgraded
digital store. The bots have been used by our people more
than 100,000 times, with an estimated time saving of over
154,000 hours this year.
Our newly formed data and AI team expanded significantly in
FY2023 and is focused on using our data as a strategic asset to
deliver on our ambition. The team achieved five times the number
of planned data and systems integration into our data hub. Finally,
we created a supply chain dashboard to optimize spend by supplier,
with significant first year estimated savings forecast.
Digital literacy
We’re continually developing and delivering learning content to
support our people. This year we delivered five modules of the Data
Centric Engineering training to more than 3,500 global attendees.
Our learning modules continue to be used globally, with more than
16,000 digital passports complete, along with over 9,200 digital
science stamps, 8,500 AI stamps and 7,800 data literacy stamps
completed since we launched these modules.
Customer solutions
Our customer solutions team are working with industry leaders,
such as BHP, Rio Tinto and Vale, on ground-breaking projects that
shape the industry. We’re developing solutions for our customers
that have a particular focus on automation, remote operations
and the use of digital assets. These solutions leverage digital and
data assets to give comprehensive insights into operations and
facilitate safer, more efficient and cost-effective systems.
This year, we’ve worked with our customers to increase the use of
digital twins with operations and maintenance teams. These digital
replicas of physical systems allow teams to leverage real-time
insights for smarter decision-making.
This year, we launched our first Scope 3 emissions monitoring
project in partnership with a leading European battery
manufacturing operator. This project underscores our commitment
to aligning our operations with global climate goals.
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Worley Annual Report 2023
Operating & financial review
3. Performance
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3.2.4 Cybersecurity, data protection and
incident response
Our Information Security and Cyber Risk Management Strategy
drives our approach to data security risk.
The objective of our strategy is to protect our own data and our
customers’. We’ve based our strategy on the National Institute
of Standards and Technology (NIST) Cyber Security framework
and the Australian Cyber Security Centre Essential Eight Maturity
Model. We continue to evolve our program to stay ahead of the
curve in the ever dynamic cyber-threat landscape.
Information security and cyber risk governance
The Chief Information Security Officer (CISO) leads our Information
Security and Cyber Risk Management Program and Strategy.
The CISO reports to the Group Executive Director, Information
and Digital Delivery. Information security key risk indicators are
presented to the Audit and Risk Committee and our Executive
Group regularly throughout the year. Detailed reports on
information security and disaster recovery are also presented.
We disclose the experience and skills of the Board in our
Corporate Governance Statement.
We run an awareness program for our people, which includes
yearly mandatory training on our cybersecurity policy, email
phishing campaigns and Yammer posts, as well as customer
training programs and other initiatives.
Information Security Management System (ISMS)
Our ISMS is ISO 27001 certified, which covers the management
of our IT infrastructure, operations and data center services.
We implement our ISMS using the company’s ISO 9001 certified
Management and Knowledge Systems. This specifies the minimum
security requirements for our activities and contains the policies,
processes, standards and procedures required to implement them.
We publicly disclose our information security and data protection
policies on our corporate governance site.
To make sure our control environment is transparent and robust,
independent internal and external parties continually monitor
and assess our ISMS and audit once a year. They also test our
independent controls multiple times a year.
Incident response
Our Cyber Security Operations Center follows a formal and
documented incident response plan, which contains clear
escalation procedures. We have multiple standard operating
procedure documents that enable us to respond to specific types
of attacks or incidents. We partner with top-tier cybersecurity
firms to test these processes at least five time per year. We also
have an internal ethical hacking and threat intelligence group that
run monthly tests and preparation exercises.
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Overview
Context & strategy
Operating & financial review
Financial statements
3.3 Equipment and fabrication
Our equipment and fabrication business value driver refers to manufacturing, constructing, operating and
maintaining equipment and assets for the energy, chemicals and resources sectors.
3.3.1 Construction and fabrication
A major part we play in delivering solutions for our customers
is across:
• engineering, procurement and construction (EPC)
• engineering, procurement and construction management
(EPCM)
• construction management
• stand-alone construction projects.
3.3.2 Field services
We deliver field services for our customers in a variety of complex
facilities in greenfield and brownfield assets globally. Our services
include maintenance, modification, operations, fabrication,
construction, management, start-up and commissioning. These
services are provided as an integrated offering with engineering or
standalone depending on the project and customer requirements.
Our integrated approach to maintenance, modifications and
operations reduces risk and costs.
One of our differentiators is our ability to deliver any of these
solutions for highly complex projects, where our role also includes
being the integrator of all sections of the facility. We deliver these
solutions with our people (via direct hire) or working with others
through joint ventures or partnering arrangements.
As part of portfolio management in FY2023, we divested part
of our field services business: North American turnaround and
maintenance business. This business predominantly supported
oil refineries and petrochemical plants with most of its revenue
derived from traditional work (see page 50).
Our construction approach includes modularization, and stick-built
and pre-fabrication methodologies. We manufacture bespoke
pipework, metalwork, joinery and control and electrical panels
through our fabrication yards in the UK, Europe and the Americas.
The transaction supports our strategy of delivering high-value
solutions in growth markets across the energy, chemicals and
resources sectors, and our ambition to grow our revenue from
sustainability-related business across the portfolio.
Ensuring safety and quality in construction
We capture any defect- and safety-related rework through our
assurance system via non-conformance reporting. Considering the
amount of non-conformance that is reported, we do not consider
associated costs to be a material figure.
In the Americas we continue to provide field services in projects,
fabrication and construction. We have more than 2,000 people and
four fabrication locations.
3.3.3 Our delivery centers
Modularization and fabrication – Gulf Coast hub
Our direct hire and construction management business in the
US comprises around 8,000 people. In FY2023, this included
around 2,000 construction workers, mostly direct-hire craft,
working on-site. Additionally, we are responsible for managing
the construction of large greenfield and brownfield facilities as
part of the EPC phases of projects. In FY2023 we:
• built 600 large modules
• used robotic welding which is three times faster than
manual welding
• delivered the early stages of over 1 GW of solar generation with
future EPC execution prospects for this generation.
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Worley Annual Report 2023Equipment and fabrication WorleyCord – Canada
Rosenberg – Norway
Our fabrication and field services business in Canada comprises
around 2,000 people. Around 300 are in our three fabrication
facilities. Our fabrication work is mostly lump sum. The remainder
of our people are across sites, mostly industrial facilities. These
include welders, pipers and electrical and instrumentation
technicians. In FY2023 we:
In Norway, Rosenberg Worley AS operates in a fully integrated
engineering, fabrication and construction environment. Designing
and building assets for offshore industries, Rosenberg has a
strong focus on new markets, including offshore floating wind,
electrification and hydrogen. In FY2023 we:
• had 5,000+ people (engineering, fabrication and project
• continued our partnership with Women Building Futures,
management) and 35 apprentices
resulting in nine new apprentices hired
• carried out the Jotun FPSO re-float in June after around
• continued to build on our proactive Indigenous engagement
1.7 million worked hours for Vår Energi
approach (see below).
• delivered fabrication for the fast-track Brunsbüttel LNG import
terminal (see page 60)
• completed more than 2 million worked hours for Neptune
Energy’s two Gjøa platform tie-back projects
• added a hands-on hazard hunting exercise via our Certified
Training Center
• installed 1,020 solar panels on our main office building.
Worley field services – UK
In the UK, we provide field services across fabrication, site services
(maintenance and turnarounds) and construction. We’re playing
an important role in the energy transition in the Humber region.
Our fabrication offering includes plating, welding, machining,
structural steelwork, pipework, and electrical and instrumentation
site services. The facilities encompass over 4,000 m² of workshop
space. In FY2023 we:
• received Apprentice Employer of the Year award
from the Grimsby Institute of Further and
Higher Education
• were sole provider for mechanical and electrical
maintenance at the Phillips66 Humber Refinery
with 120 employees onsite.
Our Rosenberg facility in Norway
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Proactive and meaningful Indigenous engagementWorleyCord is working with our customers to provide meaningful engagement with Indigenous, local and diverse communities prior to mobilizing onto any project. This effort is guided by and aligned with both our Indigenous, Diverse and Local Participation Plan and our customers’ commitment to local communities. We have an extensive list of prequalified companies with Indigenous ownership or Indigenous participation via partnerships or joint ventures. We seek to preferentially engage these Indigenous companies where they meet our health, safety, environment, quality, schedule and cost requirements. In FY2023, over 42% of all subcontract opportunities are being awarded to Indigenous businesses. On one project, 56% of the total dollar value of site services purchase orders have been awarded to Indigenous communities and their partners to date. Operating & financial review3. PerformanceEquipment and fabrication Overview
Context & strategy
Operating & financial review
Financial statements
3.4 Environment
Our environment business value driver refers to the natural resources we use and the work we do,
together enabling us to steward environmental sustainability for our business and our customers.
3.4.1 Climate
Our Climate Change Position Statement (CCPS) sets out our response to climate change. It includes both
the work we do for our customers and how we run our business. We structure our disclosures through
these two lenses.
The CCPS considers both climate change mitigation and adaptation. The Executive Group Director, Sustainability executes the CCPS,
which is ultimately governed by the Board Health, Safety and Sustainability Committee.
Climate Change
Position Statement
As the world seeks to urgently reduce
greenhouse gas emissions to net zero,
our role is clear. We're increasing our focus
on the decarbonization of the Energy,
Chemicals and Resources sectors.
We're also making assets more resilient
to climate change. Supporting the
protection of biodiversity. Accelerating
the deployment of technology. And
transforming the way we design, buiId
and operate assets to ensure we're
delivering a more sustainable world.
There's a lot of work to be done this
decade. But we're not doing it alone.
Collaboration is central to our approach.
We're working with our customers and
creating partnerships to find solutions
that enable sustainable growth. And we're
supporting our people and communities
to ensure an inclusive transition.
The actions behind our words
What we’re doing to support our climate
change position statement.
We’re progressing well on our five strategic actions:
Reduce our emissions to net zero
See page 52.
Grow our sustainability-related business
See page 26.
$100m investment over three years
See page 28.
Transform our culture
See page 75.
Plan for nature and biodiversity
See page 71.
Climate and our customers
Supporting customers committed to decarbonization
As the energy transition continues apace, our dialogue with
customers is evolving. With 85% of our top 20 customers by
revenue having net zero commitments, conversations are focusing
on how this can be done.1 These are transformative changes to
existing business models and skill sets.
Countries are moving at different speeds, influenced by economic
uncertainty, energy security pressures and supply constraints.
Clear policy levers, such as the Inflation Reduction Act in the US,
Australia’s Safeguard Mechanism and the European Green Deal,
have been instrumental in catalyzing progress.
We’re winning a significant number of early-phase projects
(feasibility and FEED) in sustainability-related work.
We’re also increasingly seeing the early phase work progress
into later phases.
We’re partnering with our customers to deliver infrastructure
and integrated solutions to some of the most ambitious
decarbonization projects in the world (see page 30).
1. This includes customers with net-zero Scope 1 and Scope 2 commitments by 2050 or sooner.
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Worley Annual Report 2023Environment FY2023 sustainability-related work1
10%
4%
16%
23%
47%
Feasibility
FEED
Detailed design
Construction
& commissioning
Operations
& maintenance
Embedding climate thinking in the way we deliver work
Our Safe and Sustainable Engineering for Asset Lifecycle (SEAL)
Framework guides us to deliver safe and sustainable engineering
outcomes to our customers.
This year, we expanded our Sustainable Design (SD) pillar and
trained our people to deliver more sustainable outcomes on
every project. Some of our SD resources include:
• our Sustainable Solutions Standard – helps us quantify and
record ideas using tools, such as our value creation database
• our Value Improvement Practices (VIP) Standard for energy
optimization – recently expanded across all operations
• our basis of design template used on project delivery prompts
users to consider implications of climate change on the design
as part of climate adaptation.
Climate change continues to grow as a material issue in
engineering design and delivery. In particular, climate-resilient
design is emerging as critical in supporting the adaptation of
critical infrastructure to climate hazards. We’re continually looking
to evolve the way we design and deliver projects to support this.
Climate and our business
Energy and Scope 1 and Scope 2 emissions
We’ve reduced our Scope 1 and Scope 2 emissions to 41,422 tCO2e.
We are now decoupling our energy usage from Scope 1 and
Scope 2 emissions.
We’ve continued to focus on energy efficiency and procurement of
renewable energy. We’ve:
• installed rooftop solar panels at our offices in Stavanger,
Map Ta Phut and Antwerp
• purchased renewable energy for our operations in US, Canada,
Australia, India, New Zealand and Bulgaria
• improved energy efficiency in our Saudi Arabia offices by
switching off lights and air conditioning when not in use
• begun switching to hybrid and electric vehicles to reduce our
fuel use.
In the short term (2023-2025), we are focusing on renewable
energy procurement, office consolidation and energy efficiency.
We are also beginning to electrify our vehicle fleet where viable.
In the longer term (2025-2030), we will focus on the global
decarbonization of our vehicle fleet and heavy equipment, and
phasing out natural gas for heating where possible.
Achieving our net-zero Scope 1 and Scope 2 target has several
uncertainties, including the ability to procure zero-emissions
electricity, heating and cooling, the accessibility of zero-emission
vehicles and charging infrastructure, and the ability to source
high-quality accredited carbon credits for our residual emissions.
We are managing these uncertainties by monitoring and choosing
fully renewable energy procurement options, fully electrified
buildings and electric vehicles in the countries we operate in.
Where available, we work closely with local teams to implement
these initiatives. We expect that sourcing these options will
become more accessible as we get closer to 2030, however, it is
likely we will not be able to remove all of our Scope 1 and Scope 2
emissions. We will offset these residual emissions using high
quality carbon credits to achieve net-zero Scope 1 and Scope 2
emissions by 2030.
Scope 3 emissions
We have a target for net-zero Scope 3 emissions by 2050 and are
now disclosing 11 of the 13 applicable Scope 3 categories to us, as
defined in the Greenhouse Gas Protocol. We are using our Scope 3
data to inform the short- and medium-term actions we’ll take
to progress toward our net zero target. We continue to focus on
improving our Scope 3 emissions data quality.
As expected, our air travel emissions increased as travel
returned closer to pre-COVID-19 levels. We have purchased
10,558 tCO2e worth of carbon credits to offset the 35% of our air
travel that is non-billable2. Our carbon credits are accredited to
Gold Standard and Verified Carbon Standard climate projects
that distribute efficient cookstoves, protect forests and develop
renewable energy infrastructure. These projects simultaneously
reduce carbon emissions and improve the quality of life of people
threatened by the impacts of climate change.
We disclose our detailed Scope 3 GHG emissions in our
CDP submission.
Climate performance
Indicator3
Our customers
% of top 20 customers (by revenue) with net
zero Scope 1 and Scope 2 commitments
% of aggregated revenue that is
sustainability-related
Our business
Energy use (MWh)
Scope 1 + Scope 2 GHG emissions (tCO2e)
Scope 3 GHG emissions - total (tCO2e)
FY2022
FY2023
80
35
85
41
212,345
211,640
48,211
41,422
585,850
792,007
1. Number of wins in FY2023 for sustainability-related projects, sorted by project phase.
2.
3.
We are working through system limitations with a view to also offset our billable travel with carbon credits.
We disclose the reporting criteria for select metrics in our sustainability basis of preparation. Scope 2 emissions are disclosed as market-based Scope 2 emissions. We
also disclose our location-based Scope 2 emissions, see our CDP submission. In FY2023 our Scope 3 emissions increased due to increased business activity (primarily in
procurement) and updates to emissions factors.
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Operating & financial review3. PerformanceEnvironment Overview
Context & strategy
Operating & financial review
Financial statements
3.4.2 Task Force on Climate-related Financial Disclosures (TCFD)
We continue to align our climate-related disclosures with the recommendations set out by the TCFD.
Below is a summary of our 2023 TCFD disclosures. Our TCFD report provides full disclosure on how we manage climate-related risks
and opportunities.
Governance
TCFD recommendation:
a. describe the board’s oversight of climate-related risks and opportunities
b. describe management’s role in assessing and managing climate-related risks and opportunities.
Our response:
Our business model, purpose and ambition are centered around sustainability, decarbonization and the energy
transition. We have a strong governance structure to oversee our approach, including climate-related risks and
opportunities. This involves members of the Board and senior management, who oversee our climate change response.
Board standing committees relevant to climate-related risks and opportunities include the Health, Safety and
Sustainability Committee (HSSC), the Audit and Risk Committee (ARC), and the People and Remuneration Committee
(PRC).
The HSSC has company-wide oversight of health, safety and sustainability. This includes oversight of our climate
change approach and climate-related risks and opportunities. The ARC is responsible for monitoring climate-related
risks and opportunities as part of our enterprise risk strategy. The PRC reviews and makes recommendation to the
Board on the Group’s remuneration policy, including climate-related indicators. It also monitors key risk indicators
related to climate change.
At a management level, our Group Executive, reporting directly to the CEO, are responsible for delivering the strategic
direction and goals as determined by the Board. This includes climate-related strategy, risk management and disclosure.
Detailed disclosure:
• TCFD report
Other key resources:
• ESG performance summary
(see page 52)
• Directors’ Report
(see page 96)
• Corporate Governance
Statement
Strategy
TCFD recommendation:
Detailed disclosure:
a. describe the climate-related risks and opportunities the organization has identified over the short, medium and long term
• TCFD report
b. describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and
Other key resources:
financial planning
• Risk management (see
c. describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios,
page 86)
• Climate Change Position
Statement (see page 67)
• CDP submission
• Strategy and sector outlook
(see page 24)
including a 2°C or lower scenario.
Our response:
Each year, we identify and manage these risks and opportunities over the short, medium and long term. We use our
enterprise risk management process to identify financial and strategic climate-related impacts across all our operations.
We have a range of climate-related risks and opportunities relevant to our business.
Description
Potential impacts
Transition
climate risks
Managing the potential economic and
reputational risks associated with the
global transition to a lower-carbon economy.
• Changing demand for fossil fuel and lower-
carbon markets
• Rapid technology development
• Adverse reputation
Physical climate
risks
Managing the physical impacts of climate
change on our operations as well as the work we
deliver for our customers.
• Business continuity and productivity
• Supply chain interruption
Climate-related
opportunities
Increasing our efforts to mitigate and
adapt to climate change and capturing
building market demand.
• Growth in lower-carbon products and services
• Businss growth in emerging markets
• Reduced carbon footprint of our operations
When developing our strategy, we assessed the resilience of our business strategy across a range of scenarios, racing
green (1.5°C), burnt orange (2°C) and red alert (3°C). These scenarios consider:
• scenarios from the Intergovernmental Panel on Climate Change (IPCC) 6th Assessment Report (AR6)
• scenarios from the International Energy Agency (IEA).
We develop adaptation and mitigation strategies based on each possible scenario, considering both risks and
opportunities. By integrating these scenarios into our decision-making, we ground our investments, including investments
into new markets and technology. See our full TCFD report and CDP submission for more information.
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Worley Annual Report 2023Environment Risk management
TCFD recommendation:
a. describe the organization’s processes for identifying and assessing climate-related risks
b. describe the organization’s processes for managing climate-related risks.
Our response:
We manage climate risks and opportunities consistent with our risk management framework. For details of how we
manage all risks and opportunities (see page 86).
We consider climate-related risks and opportunities through the lens of principal and emerging risks1. We’ve disclosed
principal risks for climate change in our Annual Report (see page 93). We use a risk matrix approach with relevant
likelihood and consequence criteria that covers a range of risk types, including climate change. Our risk management
framework sets our overarching approach and applies to all areas of our business, such as product delivery and
corporate functions.
We use our business risk processes and tools to identify climate-related risks and opportunities. These include climate
(transition and physical) risk workshops, our risk taxonomy, and our Responsible Business Assessment Standard.
Various groups and processes within the business contribute to managing our climate-related risks and
opportunities. Key groups include project delivery, growth, internal audit, R3, our people and supply chain management.
Detailed disclosure:
• TCFD report
Other key resources:
• Risk management
(see page 86)
Metrics and targets
TCFD recommendation:
Detailed disclosure:
a. disclose the metrics used by the organization to assess climate-related risks and opportunities in line with
• TCFD report
its strategy and risk management process
b. disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks
c. describe the targets used by the organization to manage climate-related risks and opportunities and
performance against targets.
Our response:
We use a range of metrics to measure our progress in addressing climate-related risks and opportunities.
Through our ambition, we have climate-related targets relating to both the work we do for our customers and the way
we run our business. These include:
Supporting our customers:
• ambition to derive 75% of our revenue from sustainability-related work by FY2026
Other key resources:
• CDP submission
• Remuneration Report
(see page 108)
• Climate
(see page 67)
Our own performance:
• Scope 1 and Scope 2 GHG emissions
– net zero by 2030
– reduce net emissions by 65% by FY2025 from a FY2020 baseline
• Scope 3 emissions
– net zero by 2050
• energy productivity
–
Improve our energy productivity by 25% by 2030 from our baseline energy productivity in 2020
of $30.4 million revenue/GWh
See page 68 for our performance against our climate-related targets.
The Short-Term Incentive (STI) Plan applies to ~1,100 Senior Leaders. As part of its framework, the STI Plan includes
metrics we use to track climate-related performance (see page 122). The Deferred Equity Plan (DEP) also includes
climate-related performance metrics for the Group Executive (see page 124).
1.
We define current risks as risks that can be identified, assessed and managed. Emerging risks are potentially new, growing or changing risks that are difficult to assess.
Emerging risks are monitored as they develop, and potentially transition to become a current risk.
70
Operating & financial review3. PerformanceEnvironment Overview
Context & strategy
Operating & financial review
Financial statements
3.4.3 Nature
We’ve developed a roadmap to seek positive outcomes for nature. This includes how we deliver work for
our customers and how we run our business. We structure our disclosures through these two lenses.
We seek to evolve our business, guided by the Kunming-Montreal Global Biodiversity Framework (GBF) and in support of the GBF’s
2030 mission.
We’ve shown this plan through the lens of four of the five drivers of nature change that are material to our business and customers:
climate change, land use change, resource exploitation and pollutants. These are as outlined in the Taskforce on Nature-related Financial
Disclosures (TNFD).
The greatest impact we can have on nature, and biodiversity, is through how we deliver work for our customers. Through our engineering
delivery systems and processes, we can support positive outcomes for nature in the energy, chemicals and resources sectors. In each of
these sectors there are associated impact drivers and dependencies on natural capital. An example of this is water scarcity - many of our
customers are looking to improve their water efficiency and reduce their dependency on freshwater withdrawals.
At the same time, our operations (such as our fabrication yards) have a material interface with nature through our water consumption and
waste production.
Our roadmap to seek positive outcomes for nature
Our customers
Seek positive
outcomes for
nature through
how we deliver
work for our
customers
Our business
Minimize the
impacts of our
operations
on nature
Material drivers
of nature change
FY2024-FY2025
Assess and take initial steps
FY2026-FY2027
Transform
• Climate change
(see our CCPS)
• Land use change
• Resource exploitation
• Pollution
Partner with industry coalitions
Educate and build
awareness internally
Identify mechanisms that
support nature in project delivery
Update our management
systems and project
frameworks to further
integrate nature, including
the social-nature nexus and
rights of First Nations peoples
• Climate change
(see our CCPS)
• Resource exploitation
• Freshwater use
• Pollution
• Fabrication yard waste
• Single-use plastics
Begin phasing out the
provision of single-use plastics
Develop reduction targets
for water and waste intensity
Complete our FY2025
single-use plastics
commitment
Water and waste
management
FY2027+
Improve
and adjust
To develop our roadmap, we engaged with external stakeholders and our own people. The TNFD recognizes that engaging stakeholders is
crucial, so we will continue to do so to help guide and implement our nature roadmap.
Our reporting
After the 15th Conference of the Parties to the Convention on Biological Diversity (COP 15), the GBF outlined a target for
companies to monitor, assess and disclose risks, dependencies and impacts. We will seek to align our disclosure with the GBF
and will do the same with the TNFD’s recommendations once they are finalized. We’ll also monitor other nature and biodiversity
reporting standards as they evolve.
71
Worley Annual Report 2023Environment Nature and our customers
We’ve been involved in some ambitious projects that focus
on nature restoration and rehabilitation within our sectors
(see page 41).
Embedding nature into project delivery
The way we deliver our work can influence nature-related
outcomes. The SD pillar of our SEAL framework forms the basis
for how we consider environmental sustainability in our project
planning and design. We have SD standards for each of our
engineering disciplines, which cover a range of factors, including:
• water withdrawal, usage and efficiency
• emissions and discharges, including waste production
• material selection and life cycle impacts
• land use change, including construction, groundworks, site
activities, etc.
As we take steps toward the Kunming-Montreal GBF, we will seek
to evolve our own project delivery processes and support achieving
these goals.
Environmental risk management
Our Environmental Management System is part of our
Management and Knowledge Systems. Through this, we manage
our environmental aspects and impacts in a structured manner,
aligned with principles of the internationally recognized standard,
ISO 14001:2015.
We undertake environmental impact and risk assessments at
the project planning stage to identify sensitive environmental
areas that require protection. This helps us to form a strategy to
manage all significant risks to the environment. Our Environmental
Management System covers environmental conservation and
management, land control measures and site reclamation and
remediation. Our assurance system captures environmental
incidents that are reportable to regulatory or statutory bodies.
We use this to monitor our environmental performance at sites
where we are in operational control.
We hold ISO 14001 certification in parts of our business. The
certified offices / site as of 30 June 2023 are in Australia (Worley
Power Services) (9), Bulgaria (1), Malaysia (Ranhill Worley) (1),
Norway (1) and the United Kingdom (7).
Our Environmental Management System applies to all our sites and activities. It includes a series of procedures, outlined
below, that support management of environmental risk in the way we deliver work for our customers.
Environment
• Environmental management
• Environmental plan
• Air quality control
• Liquid effluent and discharge
control
• Waste management
Our Environmental Management System
Field site establishment
and preparation
Dangerous and
hazardous substances
Demolition and
decommission
• Camp accommodation facilities
• Site traffic management
• Barricade hoarding and barrier
• Occupied facility siting
• Field HSE induction orientation
• Site-specific HSE induction
• Site-specific HSE orientation
• Hazardous substances and
• HSE decommission and
demolition
dangerous goods
• Chemical communication
• Hazardous chemicals
information
• Asbestos containing materials
• Working with radioactive
materials
• Management of naturally
occurring radioactive materials
72
Operating & financial review3. PerformanceEnvironment Overview
Context & strategy
Operating & financial review
Financial statements
Nature and our business
Phasing out single-use plastics
We’ve developed and started executing our plan to phase out the
provision of single-use plastic in all our owned and managed sites
by end of FY2025.1
Our plan was guided by the draft recommendations of the
TNFD and its mitigation hierarchy. We’ll use a three-step
scheme to make decisions, comprising the principles of avoidance,
reuse and substitution.
Whilst we endeavour to avoid single-use plastics whenever
possible by the end of FY2025, in cases where we can’t, we’ll
select a substitute sustainable material, where available.
This year, we:
• rolled out our company communications, including the banned
list of items to be phased out and associated guidelines
• appointed sustainability champions in our locations across the
globe. Their role is to help build awareness and provide location-
based tools to manage this change and measure the phase-out
throughout the company
• took actions in pilot locations, commencing the phase-out of
single-use plastic at our London office.
Our primary focus for FY2024 will be on countries with the most
sites and pre-existing plastic regulations. These include Canada,
Australia, the UK, the US and New Zealand.
Freshwater use
We operate in many regions across the globe. As such, water
scarcity poses a potential risk to our business.
Extremely high
Low
High
18%
12%
42%
Medium-high
15%
13%
Low-medium
Each time we lease a new building, we review its sustainability
features. This review includes water efficiency considerations.
We’re working to occupy sites that are water efficient through, for
example, a focus on water-efficient appliances.
Waste management
Our fabrication yards in Canada, Norway, the US and the UK are our
most significant locations when it comes to waste generation.
In Norway, at our Rosenberg facility, we have implemented a
new waste collection system and have partnered with a waste
management service for recycling of our metal waste. As our
waste production is closely tied to our level of business activity,
we’re focusing on how we can reduce our waste intensity at this
location.
This year, we used our sustainability performance system to audit
locations with out-of-date waste data. We’ve also been raising
awareness on waste management through our sustainability
champions as part of our zero single-use plastics initiative.
We also joined the Resource Wise Business Program in our New
Zealand office. This is a four-year behavior-change program aimed
at helping businesses reduce waste in landfill.
We’re improving our water and waste data quality and increasing
the proportion of our data that is measured rather than estimated.
Nature performance
Indicator
Total water withdrawn (ML)
Freshwater withdrawn in regions of high
or very high water scarcity risk (ML)2
Total waste produced (t)
Hazardous waste produced (t)
Waste recycled (t)
FY2022
FY2023
592
134
15,729
652
5,404
539
128
13,119
298
3,423
Waste collection station at our Rosenberg facility in Norway.
1.
2.
We define single-use plastics as plastics that are used once, or for a short period of time, before being discarded.
Significant water risk is defined as areas with high or extremely high baseline water stress, according to the World Resources Institute Aqueduct Water Risk Atlas tool.
73
Worley Annual Report 2023Environment 3.5 People
Our people business value driver refers to energized and empowered people with the capability and
experience to deliver our purpose. Our people are at the center of what we do.
3.5.1 Health, safety and well-being
Well-being
Our well-being strategy focuses on creating healthy people,
environments and relationships. This year, we’ve solidified our
existing foundations, taking targeted actions across four areas.
Psychological safety
Psychological safety fosters an inclusive workplace culture,
empowers our people, inspires innovation, creativity and ideas, and
enhances employee engagement.
We recorded strong physical safety performance in FY2023. We’re
deeply saddened to have lost a member of our team through a
work-related fatality this year. One of our people was killed in a
commercial plane crash in Tanzania whilst travelling to site.
Management system
Our Life approach includes a safety, health and well-being
management system. Our people work across different
environments including managed sites, customer and joint-venture
managed sites, remote working, working from home, virtual
operations and global delivery.
We’ve started embedding psychosocial factors into our health and
safety framework and align with ISO 45003 psychological health
and safety at work standard. This will extend into FY2024, as we
strengthen our Life Programs to provide our people with the tools to
identify and manage psychosocial risks in their work environment.
We continue to uphold the minimum standards that the Worley
management system must meet. Our management system is
certified to ISO 9001 and parts of our business hold ISO 45001
certification. We conduct third-party audits of our management
systems and metrics.
In step with our focus on psychological safety, we have
established a dedicated program of work on human rights
(see page 81).
Our expectations of contractors
When it comes to safety, health and well-being, we hold
contractors to the same high standard.
Education, training and communications
Our Mental Health Champions network continues to grow,
with 307 Champions in over 31 countries. We explored what
psychosocial safety means in practice through Mental Health
Week 2022 and Safety Week 2023 and will continue to develop this
work.
When we consider project risks, we look at how we manage
contractor health and safety. It’s important to get the messaging
right at the start and set the right culture. We invite our contractors
to take part in our Life programs such as Life conversations, Take5
for Safety, Life-saving rules and the White Hat Program for site
supervisors.
Leadership, policy and culture
We built a formalized global committee for well-being, with a
defined purpose and KPIs, overseen by an executive sponsor.
We’re helping our managers support well-being. We’ve been
delivering mental health resources for our managers through
our Employee Assistance Program, eLearning platform and pilot
workshops.
Our Ambassador program includes a well-being assessment and
establishes a support network in each location. We’ve piloted
the program in South Africa and plan to roll it out to nine more
locations by the end of FY2024.
Maximizing and leveraging our rewards
We launched our global recognition program, Appreciate. This
gives people an opportunity to shine a light on their colleagues
when they see our values and behaviors in action. So far, we’ve
seen 32,111 recognition moments.
Physical health and safety
Our commitment to safety is underpinned by our Life value, which
encourages people to be curious, speak up, act and share lessons.
Safety performance
Indicator1
TRCFR (total)
Company employees
Contractors and sub-contractors
Partners and customers
LWCFR (total)
Company employees
Contractors and sub-contractors
Partners and customers
SCFR (total)
Company employees
Contractors and sub-contractors
Partners and customers
Fatalities (total)
Company employees
Contractors and sub-contractors
Partners and customers
1.
We disclose the reporting criteria for select metrics in our sustainability basis of preparation.
74
FY2022
FY2023
0.16
0.13
0.21
0.06
0.04
0.03
0.06
0
0.06
0.05
0.07
0.06
0
0
0
0
0.14
0.12
0.18
0
0.03
0.03
0.03
0
0.03
0.03
0.04
0
1
1
0
0
Operating & financial review3. PerformancePeople Overview
Context & strategy
Operating & financial review
Financial statements
3.5.2 People development and performance
Our people remain at the heart of delivering our ambition and our purpose. We believe that energizing
and empowering our people is key to delivering our business strategy.
The right people, the right experience
Our leadership principles
We operate in a challenging labor market, with high employment,
wage growth and some key skill shortages. Despite this, our
attraction efforts remain focused and effective. Our time to hire
has remained relatively steady through FY2023.
We reward our people’s contribution and achievements through
our Appreciate Program. We have invested in strengthening our
employer brand and telling our story in a way that attracts people
who are energized by our purpose and ambition. This is particularly
important in a challenging labor market.
We’re also turning our attention to becoming a skill-powered
organization. When skills are central to how we think about roles
and people, it opens new opportunities for reskilling and career
mobility. It also brings a new perspective to how we help people
see ways to apply their skills in energy transition opportunities.
We also are investing in pilots to strengthen the identification of
our talent and obtain more insights on their performance, potential
and readiness for new experiences and opportunities.
Our culture is a key enabler of our growth and strategy and we’re
focusing on behaviors that will help achieve our ambition. We’re
also focused on well-being and making sure we provide the best
experience to attract and retain the right people (see page 74).
During FY2023, we activated our leadership principles: create
meaning, embrace possibility and deliver what matters. These
principles outline our expectations of leaders and help them
bring our purpose, ambition and values to life and lead through
our transformation.
Each principle is underpinned by habits that build inspirational
leadership. To bring them to life, close to 900 leaders from
41 countries took part in a Leadership Wave Experience from
October to December 2022. This helped leaders:
• understand and experience the leadership principles
• become clear on their role in activating these principles.
The overall feedback on the experience was encouraging, with
continued visits from our leaders to our leadership online tools.
We’re also reimagining our approach to leadership development
and building opportunities that are:
• personalized: offering people the choice to learn what they need,
when they need it and in a variety of formats
• stackable: where they can take advantage of smaller, learning
moments to add to their toolkit
• scalable: using technology so it’s accessible to more people and
in-the-flow of work every day, ‘anywhere and anytime’.
We’ve made good progress in FY2023 with a range of program
designs and pilots. We’ve commenced a monthly series of
leadership masterclasses for our people to learn and develop their
leadership skills.
75
Worley Annual Report 2023People Improving coaching
Everyday learning
Coaching capability is at the heart of our leadership principles and
a key skill for today’s leaders. To build this skill, we delivered a pilot
training program in Australia during FY2023 in conjunction with
digital coaching prompts.1
A key component of our People Strategy is building a culture and
tools to support everyday learning. We’ve focused on development
that’s flexible, accessible, sparks curiosity and builds the skills and
experiences that make our people future fit.
These prompts combine behavioral-science insights with the latest
technology to create a new kind of coaching experience for leaders.
The results of our pilot show that:
• managers who acted on the nudges saw higher levels of
happiness, retention and connection with our values within
their teams
• managers who used the platform improved across the
leadership principles
• employees indicated that 15% of managers became more
effective in the six months of using the nudges.
Our leaders’ engagement with prompts was within the top
quartile across our partner platform’s customer base.
We intend to expand the prompt platform to all our leaders over
the coming years.
In February 2023, we launched our new Learning at Worley
initiative. Our eLearning platform, powered by Go1, offers learning
modules that our people can access anywhere and anytime. To
date, our people have completed over 26,000 learning modules
with over half of our learners completing more than two modules.
Learning at Worley gives access to a range of learning areas,
specializations, Worley-created content, compliance training and
records all in one place.
We continue to build the sustainability and digital competencies
of our people through our Transformation Program. We’ve now
issued over 44 thousand sustainability learning accreditations,
covering topics such as green hydrogen, offshore wind and
environment and society consulting.
Digital and data informed
Having the right systems is central to achieving our strategy
and ambition.
We completed a comprehensive review of people-related
technology across four streams that have significant impact on
attraction, retention and engagement, organization and people
intelligence, and data and insight-led decision making.
We’re making good progress with establishing a shared services
platform. This platform helps support the delivery of our people
operations across Worley. This is an important part of our People
Strategy that unlocks our ability to strengthen the experience,
effectiveness and efficiency of our people.
People performance
Indicator
Training and development
Digital learning accreditations issued (total)
Sustainability learning accreditations issued
(total)
Workforce training on data privacy
(% of total workforce)
Other
Utilization (%)
FY2022
FY2023
21.7k
10.5k
41.8k
44.7k
85
98
90
90
Image from our Houston field office
1. A digital prompt is personalized coaching provided to our leaders through email or SMS, nudging their behaviors to be aligned to our leadership principles and values.
76
Operating & financial review3. PerformancePeople Overview
Context & strategy
Operating & financial review
Financial statements
3.5.3 Diversity and inclusion
Building safe, respectful and compliant workplaces
We’ve strengthened our approach to building a safe and respectful
workplace for everyone. This is key to empowering our people. Our
Respect at Work project focuses on preventing and responding to
sexual harassment and harmful behaviors in the workplace. The
Respect@Work framework, recommended by the Australia Human
Rights Commission, guides our roadmap. This roadmap has three
streams of work:
• leadership and culture
• report and support
• risk and assurance.
Under the people components of the plan, we developed
initiatives to implement across FY2023 and FY2024:
• a new Respectful Behavior Policy, promoting positive
workplace behavior
• a revised Code of Conduct training, which includes a specific
module on sexual harassment
• dedicated training for all our people: employee upstanders
‘speak up’ (prevention) and leadership (response)
• an enhanced governance framework, with a new Human Rights
and Diversity and Inclusion Council to oversee the program
• a trauma-informed and people-centered process for
responding to workplace sexual harassment
• specialist training workshops for our People and
Compliance teams
• system updates to enhance our ethics reporting portal
• increased support with our Employee Assistant Program (EAP)
partner and
• group-wide communications to promote awareness.
The importance of our People Network Groups
Our People Network Groups (PNGs) continue to create
opportunities for our people to build awareness and create
community. These PNGs are key to our culture and contribute to a
workplace where everyone feels welcome.
Continuing our focus on gender
We’re pleased to have maintained our targets for women on the
Board and within our Group Executive. This year we’ve improved
the gender balance of our graduates and our intake in FY2023 is
48 %, up from 47% in FY2022.
We remain challenged on our progress of increasing the percentage
of women Senior Leaders. We’re currently reviewing our approach
and resetting our priorities. Attracting women into core business
roles such as project delivery remains a significant challenge to
which we’re applying strategies to improve. We are now resetting
our approach through adoption of a more evidenced-based
approach to representation. We are focusing on current, effective
interventions grounded in behavioral science.
During the year, we addressed gender pay gaps during our annual
salary review process and intend to continue with this approach.
We’re training our leaders on how to reduce bias when making
remuneration decisions.
Pay equity remains an area of focus in our remuneration approach
and we apply learnings from our reporting in various jurisdictions.
We released a pay equity learning module for all our leaders. It is
designed to improve their understanding of pay equity and the role
they play, and equip them with the tools to support them making
better informed pay decisions.
We are proud to continue our involvement
with the Champions of Change Coalition
in Australia.
As part of this, we co-sponsored Shifting Expectations, a report on
how more flexible frontline roles benefit business and diversity. Our
representative, Gillian Cagney, President ANZ, attended the United
Nations Commission on the Status of Women 67th Session in New
York as part of the Champions of Change Coalition. During the
session, Gillian contributed to round table discussions and shared
gender equality practices.
Reconciliation and cultural engagement
As an ASX-listed company with a large geographic spread, race,
ethnicity and cultural issues vary where we operate. Our approach
is specific to both our business and our locations (see page 84).
Gender performance
Indicator1
Board
Targets
30% women by
FY2025
FY2022
FY2023
Achieved (33%) Achieved (33%)
Group Executive
Retain gender
diversity by FY20252
Achieved (45%) Achieved (45%)
Senior Leaders
20% by FY2025
Graduate intake
50% by FY2025
Entire workforce3 –
16%
47%
18.6%
16%
48%
20.8%
1.
2.
3.
We disclose the reporting criteria for select metrics in our sustainability basis of preparation. For the purposes of our gender diversity targets, we report the percentage of
women only. Our HR system of record does, in some locations, track non-binary status.
Gender diversity is defined as 40% women, 40% men and 20% either women or men or other.
In FY2023, the % women of our entire workforce increased. This was largely due to the sale of our North American turnaround and maintenance business. See page 50 for
more information.
77
Worley Annual Report 2023People 3.6 Communities
Our communities business value driver refers to strong relationships within our sectors - with our people,
customers, investors, communities and governments - building trust and license to operate.
3.6.1 Relationships and influence
Building our voice
We’ve extended our role and influence across the sustainability
spectrum by convening forums and thought leadership and holding
discussions with our customers. Key highlights include:
• London: our net-zero executive round-table event, bringing
together senior executives, influencers, government and the
media. Topics covered included the infrastructure pathway to net
zero and the competing interests of energy security
• Europe: our Industry Leadership Forum, convening customers to
share industry knowledge and learnings. This was our inaugural
European version of the event, with a strong sustainability focus,
including issues of inclusion and decarbonization
• Egypt (COP27): our participation in the Blue Zone executive
roundtable with Australian and French governments and other
panel discussions
• Globally: our participation at multiple events, including New York
Climate Week, the Sydney Energy Forum, the AFR Energy and
Climate Summit, and the APAC Industry Leadership Forum and
the International Business, Environment and Climate Conference.
Our thought leadership pushes the boundaries of sustainability
thinking. We’ve published a range of articles on diverse
sustainability topics, including floating offshore wind technology,
battery storage materials, energy transition and mining, workforce
diversity and power-to-X.
We continue to represent sustainability issues in diverse forums,
challenging ourselves and audiences on how to respond. This
year, we:
• participated in the UN Global Compact Business and Human
Rights Accelerator Program
• contributed to the Net Zero Australia study
• helped establish the Engineering Leadership Group, bringing an
engineering voice to global sustainability issues
• recommitted our support to the Energy Transitions Commission,
the World Economic Forum and the Oil and Gas Climate Initiative
• contributed to the Australian Climate Leaders Coalition
Scope 3 roadmap.
Our Donation, Community Investment, Sponsorship and
Membership Standard sets the principles and expectations for
any industry memberships we enter in. We list our significant
membership associations in our GRI content index.
From Ambition to Reality
Our From Ambition To Reality series, in partnership with Princeton
University’s Andlinger Center for Energy and the Environment,
continues to build traction.
The first papers, published in 2021 and 2022, considered the scale
of that challenge, identifying five key shifts in infrastructure delivery
needed to build at the unprecedented scale and pace required.
We’ve committed to measure and report on how well infrastructure
practitioners are responding to these shifts.
The third paper, published in August 2023, focuses on the
actions infrastructure participants can take now to increase the
pace of net-zero development, which continues to lag behind
what is needed.
Translating our words into action
We’re implementing the From Ambition to Reality
recommendations, with around 20 aligned initiatives either
active with customers already or in development. These include:
• accelerated development, design and execution models
for assets
• the role of design and procurement standardization
• new partnership and alliance models
• the use of blockchain technology and other digital tools.
We’re continuing to challenge the pace of infrastructure
development and drive solutions to achieve the pace and scale
needed for global decarbonization.
Download our latest
From Ambition to Reality Paper here.
Strong customer relationships
Our customer account management process includes
executive-level engagement. We also have a project feedback
review mechanism, led by our Assurance function. These make
sure we keep up to date with the changing needs, expectations
and priorities of customers at multiple levels including account,
portfolio and project. At an account level, we seek customer
feedback through direct engagement at multiple levels including
sales and business development, project delivery, executive
engagement and also through other mechanisms. Our project
feedback review approach is in line with our Management &
Knowledge Systems requirements, which is ISO 9001 (Quality
Management Systems) certified.
78
Operating & financial review3. PerformanceCommunities Overview
Context & strategy
Operating & financial review
Financial statements
3.6.2 Ethics and integrity
Our business
Our Code of Conduct establishes our commitment to high
ethical standards and complying with the law. It applies to all
our people, Board members and other parties as defined in the
Code. The Code is available in 16 different languages. Our people
must confirm in writing that they have read and understood it
during their annual refresher training. We have zero tolerance
for bribery, fraud and corruption. We have a conflict of interest,
gifts and entertainment declaration platform to manage the
requirements of the respective policies.
We launched our Code of Conduct refresher training in April 2023
with 43,800 of our people having completed this at the end of
FY2023. This covers our expectations about avoiding conflicts
of interest, zero tolerance for bribery, fraud and corruption, data
privacy obligations and modern slavery. It outlines how to identify
and report modern slavery concerns and sexual harassment.
Our people (as well as former employees, their families, suppliers,
partners and customers) can report breaches and unethical
behavior to our Ethics Helpline.
Our Ethics Helpline is available 24 hours a day, seven days a week.
Our Whistleblower Policy encourages people to come forward with
information relating to breaches and potential breaches of our
Code of Conduct.
Our key policies to promote ethics and integrity include:
• Agent Standard – guidance for dealing with all agents, our
expectations, and monitoring and compliance with Worley’s
Code of Conduct
• Anti-bribery and Corruption (ABC) Policy – defines bribery
and outlines our expectations of our people and partners, and
methods to prevent bribery and corruption
• Anti-competition Policy – defines anti-competitive behavior and
how to avoid it
• Employee Conflict of Interest Standard – sets the requirements
around disclosure of actual and potential conflicts of interest and
gives guidance to prevent / mitigate them
• Facilitation Payment Standard – prohibits facilitation payments
and explains how to prevent, resist and report such requests
• Gifts, Entertainment, Hospitality (all “Gifts”) Standard –
provides guidance on all gifts, including when to decline or
register gifts in our compliance system.
Our independent Internal Audit function reports directly to the
Board Audit and Risk Committee (ARC). We present an internal
audit plan to the ARC for approval annually. We report the results
of audits bi-monthly to the ARC and track recommendations
until they are implemented. If overdue, we flag these to the
ARC accordingly.
An audit or control self-assessment reviews all operations
annually. We fully audit key functions and controls within
a three-year cycle. These include, but are not limited to,
anti-bribery and corruption, sanctions and trade compliance
and modern slavery. All audit scopes include relevant ESG and
compliance components.
During the execution of internal audits, we perform a control
culture survey. The survey involves all employees within
operations and investigates the culture behind key controls and
behavioral expectations. It assesses areas of ethics, safety and
risk management and awareness of other internal controls.
We report the results to management and the ARC.
Our customers
Our team has performed our due diligence process, with the
number of checks conducted relatively stable compared to
FY2022. To make our due diligence more effective, we use
third-party research tools and external analysts
when appropriate.
Our sales and due diligence teams maintain centralized
communication to quickly identify and address any potential
issues We’ve also incorporated location-based alerts that
notify our sales team of any compliance concerns. This allows
us to offer immediate guidance and support.
When we encounter red flags related to bribery, corruption, human
rights, sanctions, serious negative media and modern slavery,
we escalate the matter to senior management. We then obtain
specific approvals before continuing with the bid submission.
Our Responsible Business Assessment (RBA) Standard provides
a framework to assess which projects we bid for and execute.
We embed the RBA’s decision-making principles into our sales and
risk management processes. Projects of high risk (including ESG
risks) are escalated to our Group Executive for decision-making.
79
Worley Annual Report 2023Communities FY2022
FY2023
30
61
89
180
4,335
6,660
83
13
70
117
200
4,313
5,498
112
0
0
0
0
0
Our suppliers
Our joint ventures
Responding to increased supply chain risk and having received
feedback and recommendations from our stakeholders, we
updated our Supply Chain Code of Conduct. This outlines our
expectations for our suppliers, and we make it readily available
to them. It covers a range of sustainability-related topics of
importance to us. We remain accountable to the same standards
that we expect from our suppliers. You can find the Code on our
Corporate Governance Site.
Our compliance teams review our suppliers for any risks of bribery,
corruption, modern slavery, human rights and trade sanctions.
They report negative findings to the procurement teams, who then
work with the supplier to mitigate the risk appropriately. We’ve
also updated our supplier pre-qualification questionnaire to include
ESG-related criteria.
Through our Joint Venture Governance Standard, we extend
our commitment to high standards of governance to joint
ventures. These include due diligence, consultation and
approval requirements, policies and procedures and the ongoing
requirements for governance during the operating phase of the
joint venture. We require all our joint ventures to complete a risk
and compliance checklist annually.
Ethics performance
Indicator
Ethics helpline
Reports in progress
Reports partially or fully substantiated
Reports unsubstantiated
Total number of reports
Due diligence checks
Customers
Suppliers
Other partners1
Business involvement in countries with significant corruption risk2
Number of active projects
Total backlog
0
0
Monetary losses as a result of legal proceedings associated with:
Bribery or corruption
Professional integrity
Anti-competitive practices
0
0
0
1.
2.
Due diligence checks on other partners, such as agents, joint ventures and sponsorship opportunities.
We define significant corruption risk as the countries holding the 20 lowest ratings in Transparency International’s
Corruption Perception Index, as of 30 June 2023.
80
Operating & financial review3. PerformanceCommunities Overview
Context & strategy
Operating & financial review
Financial statements
3.6.3 Human rights and modern slavery
Our approach
Respecting, protecting and promoting human rights is fundamental
to delivering a more sustainable world. Our commitment to human
rights encompasses our people, those we partner with, our supply
chain and the communities in which we operate.
We support the protection of internationally proclaimed human
rights, as set out in the United Nations Universal Declaration on
Human Rights. We are guided by the UN Guiding Principles on
Business and Human Rights (UNGPs) in our business practices.
As a signatory to the United Nations Global Compact, we also
acknowledge the principles set out within the International
Labour Organization’s Declaration on Fundamental Principles and
Rights at Work. We use these principles as a guide to improve our
responsibilities to protect, respect and promote human rights.
We collaborate across industry to improve worker welfare. We’re
a member of Building Responsibly, a voluntary global set of
principles that advance the safety, security and welfare of all
people working in the engineering and construction sector.
Governance
We outline our commitment to respecting, protecting and
promoting human rights in the Group’s policies together with
our governance framework. Human rights are governed by our
Executive Human Rights and Diversity and Inclusion Committee,
the Health, Safety and Sustainability Board Committee and the
Worley Board, who are ultimately accountable for our approach to
human rights.
Worley Board
Audit and Risk
Committee
Nominations
Committee
People and
Remuneration
Committee
Health, Safety and
Sustainability
Committee
Executive Human Rights and Diversity & Inclusion Committee
Modern Slavery
Working Group
Diversity and
Inclusion Working Group
Sustainability
Working Group
See page 54 for our sustainability governance program.
We embed our commitment to human rights in the following
policies and standards:
• Human Rights Policy
• Modern Slavery Policy
• Code of Conduct
• Supply Chain Code of Conduct
• Whistleblower Policy
• Health, Safety and Well-being Policy
• Diversity and Inclusion Policy
• Indigenous Peoples Engagement Policy
• Sustainability Policy.
Significant risk areas
Risk identification
We operate in some industries and geographies that are
considered high risk in terms of human rights and modern slavery.
Some of these include risks to our people, services and customers,
and risks in our partnerships, particularly joint ventures.
We disclose detail of these risks in our annual Modern Slavery
Statement. We’ll publish our third Group Modern Slavery Statement
later this calendar year.
Risk management
Our policies, procedures and practices underpin how we manage
our risks. These include our Group Code of Conduct, Supply
Chain Code of Conduct, contract risk processes, enterprise risk
management, quarterly risk reviews and our risk and assurance
frameworks.
We use our company risk classification matrix to determine
cause, contribution and direct linkage, as set out in the
UN Guiding Principles on Business and Human Rights.
Degree of Involvement
Cause
Action
A
Contribution
Directly Linked
A
A
Company A
Affected
person
Third-party
Affected
person
Third-party
Affected
person
We encourage our people and stakeholders to report any
human rights related grievances, concerns or issues to our
Ethics Helpline. This is our confidential, anonymous and
independently operated platform. Where concerns are
identified, we take remediation actions. We outline these
further in our Modern Slavery Statement, available on our
Corporate Governance Site.
81
Worley Annual Report 2023Communities Human rights in practice
Our business and human rights in practice framework translates the UN Guiding Principles into action and guides our program of work.
Commit
Organizational commitment
and accountability to
respecting, protecting and
promoting human rights
Improve
Continuous evolution of
best practice
Report
Transparent communication
on progress
Component
How we demonstrate this in practice
Assess
Risks to people and
opportunities to improve
conditions
Act
Integrate proactive
prevention and remedial
action
Monitor
Measure and track
effectiveness
We’re proud to be taking
part in the UN Global
Compact Business and
Human Rights Accelerator
program. This is a six-
month program that
supports our commitment
to action on human
and labor rights and on
establishing effective due
diligence processes.
Commit
Assess
Act
Monitor
Report
We commit to respecting, protecting and promoting human rights. Our leadership and governance includes our:
• Executive Human Rights and Diversity and Inclusion Committee
• Modern Slavery Working Group
• People Network Groups.
We hold ourselves accountable to our commitment and have established policies, standards and procedures that apply
across our business.
We assess risks to our stakeholders, including our people, and look for opportunities to improve conditions. We do this
through our risk management framework, supplier due diligence and community engagement.
Our risk assessment process identifies human rights impacts we may cause, contribute to, or are directly linked to. This year,
we have also undertaken a psychosocial hazard and risk assessment pilot (see page 74).
We are accountable for our actions and integrate the prevention and remediation of human rights through existing
business practice. This includes our:
• prioritization of the safety, health and well-being of our people (see page 74)
• active membership with Building Responsibly (see page 81)
• modern slavery risk prevention program and roadmap, disclosed in our 2022 Modern Slavery Statement
• focus on respect at work, including the workplace prevention and response to sexual harassment (see page 77)
• Code of Conduct and annual refresher training (see page 79)
• Whistleblower Policy and Ethics Helpline (see page 79)
• governance and programs supporting data privacy and cyber security (see page 64).
We monitor and track effectiveness of our actions through employee surveys and consultations, focus groups, grievance
processes, and training completions to provide insight. We also conduct internal audits on human rights-related topics.
We report our progress toward human rights through our:
• Annual Report and online ESG disclosures
• Modern Slavery Report
• Workplace Gender Equality Act (WGEA) Report
• Reconciliation Action Plan
• UN Global Compact Communication on Progress
See our website for more information.
Improve
We continually evolve our approach through regular review of our program and commitment, and improved reporting.
82
Operating & financial review3. PerformanceCommunities Overview
Context & strategy
Operating & financial review
Financial statements
The Worley Foundation
The Worley Foundation provides help to our people and
communities, making a positive social and environmental impact
where we operate. This year, we are supporting 21 organizations
which were nominated by our people across the world. These
organizations work every day to advance STEM education, skilled
volunteering and environmental and community benefits.
To keep our partnerships with organizations successful and free of
ethical concerns, we undertake a thorough due diligence process.
This involves assessing each organization and potential risks. We
also evaluate the outcomes of all funded projects. This includes
examining the progress, achievements, community development
and skilled volunteering.
STEM outreach
We began our global STEM campaign in early 2022 to promote
STEM as a career path within local communities.
We continue to expand our network of ambassadors and
volunteers who encourage and support STEM learning. We’ve
partnered with schools, colleges, universities and community
groups to share our STEM expertise and knowledge. Our STEM
events and activities include engineering workshops, mentoring
programs and career events.
To succeed in the energy transition, we need to inspire a strong
pipeline of diverse talent.
3.6.4 Community engagement
and shared value
We have a global presence and strive to build stakeholder trust
and social license across the communities we operate in. We do
this through:
• our government engagement
• our commitment to transparent reporting
• the Worley Foundation and STEM engagement programs
• our partnerships with First Nations groups in Canada
and Australia.
We also help our customers create social value. We continue
to target community engagement and First Nations social
investment activities for our customers.
Government engagement
We engage in political and public policy matters that impact
our business. We engage in an open, responsible and
evidence-based manner.
We contribute to discussions that are aligned with our business
and industry interests, which benefit a range of stakeholders
including our people, investors, communities and our customers.
We are also members of various trade and membership based
organizations which engage with governments on issues relating
to policy. Through these organizations, we seek to engage on
policy and industry matters that support the transition to a
lower carbon future. This includes organizations that represent
transitional and hard-to-abate sectors.
Transparency in our journey
We report our performance transparently.
Authenticity remains core to how we communicate progress.
We’re pleased to see our progress is being reflected in improved
ESG ratings. In FY2023, we were recognized as a member of the
Dow Jones Sustainability Indices for Australia and Asia Pacific, and
received a Gold rating from EcoVadis.
Our people volunteering at the Melbourne office STEM event
83
Worley Annual Report 2023Communities Reconciliation
We recognize and respect the Indigenous Peoples in the
communities that we operate in.
Through our Indigenous Peoples Engagement Policy, we seek to
implement engagement and consultation processes where we
operate. We do this to build relationships with local communities,
engage local resources and support customer-community values
and commitments.
In Australia and Canada, we’re taking dedicated steps
towards reconciliation.
Reconciliation in Australia
In 2021, we announced our support for the Uluru Statement
from the Heart and its call for a First Nations Voice enshrined
in Australia’s Constitution. Having executed our ‘Reflect’
Reconciliation Action Plan (RAP), we’re now finalizing our ‘Innovate’
RAP, which will publicly state how we will increase First Nations
engagement and participation. To achieve this, we’ve:
• established a RAP Working Group and RAP Champions to
drive delivery and implement the ‘Innovate’ RAP
• targeted First Nations career and graduate programs
• trained our sales, contracts, procurement and project
teams to identify First Nations suppliers to grow Indigenous
participation on projects
• implemented the outcomes of the Minderoo Foundations’
Woort Koorliny: Australian Indigenous Employment Index 2022
National Report, which highlighted focus areas that we could
improve upon.
Reconciliation in Canada
We have an active role in truth and reconciliation with Indigenous
People in Canada. We are pursuing the Canadian Council
for Aboriginal Businesses’ Progressive Aboriginal Relations
Certification and we’re currently at the ‘Committed’ level.
We’re implementing the learning priorities outlined in the Truth and
Reconciliation Commission (TRC) Final Report and TRC’s 94 Calls to
Action. A priority we actioned was Indigenous cultural awareness
training. Training was for all Canadian staff and addressed the truth
and legacy of residential schools. This is part of the healing process of
reconciliation, based on inclusion, mutual understanding and respect.
We continue to explore opportunities for meaningful Indigenous
Partnerships and are proud to have three linked with Advisian,
our consulting business line:
• Nu Nenne Advisian Environmental (NAE) with Cold Lake
First Nation
• Desika with Mikisew Cree First Nation and Fort McKay
First Nation
• TRS Advisian with Norman Wells Land Corporation and
Tłegǫ́ hłı̨ Reclamation Services.
Distribution of economic value
This year we distributed $11,170 million in payments that flowed
through to our economy and communities. How this economic
value was distributed is shown in the table below.
As a solutions provider to the energy, chemicals and resources
sectors, we create significant indirect economic impact. We
collaborate with our customers and peers to develop critical
infrastructure, industry standards and government policies.
There is also an indirect economic benefit through our people’s
spending on the local economy.
We also make tax contributions globally and disclose these publicly.
See our tax contribution report for more information.
Community performance
Indicator
The Worley Foundation
FY2022
FY2023
Organizations pledged to support
16
21
Corporate financial donations1
Non-legislated contributions ($)
Legislated contributions ($)
Total contributions ($)
1,397,483
1,359,475
855,406
892,880
2,252,889
2,252,355
Direct economic value generated and distributed
Economic value generated and received ($m)2
Distributed to our shareholders ($m)
9,863
262
11,137
262
Distributed to our other stakeholders ($m)3
9,552
10,908
Economic value retained ($m)4
49
-33
Economic value generated and distributed ($m)
9,814
11,170
Northwest Territories sampling on the Mackenzie River
1. Our FY2022 corporate financial donations have been re-stated. See section 2-4 of our GRI content index for more informatio for more information.
2. Receipts from customers (see page 137).
3. Via employee and supplier cost paid. This includes our corporate financial donations, income taxes and finance costs paid (see page 137).
4. Economic value generated less economic value distributed. In FY2023, this number is negative as we distributed more cash than we received from our operating activities.
84
Operating & financial review3. PerformanceCommunities Overview
Context & strategy
Operating & financial review
Financial statements
4. Outlook
We expect FY24 aggregated revenue excluding procurement
to grow (on FY23 proforma) as new and emerging customers
and major projects generate further upside. We also expect
procurement volumes to grow further on FY23.
We expect the underlying EBITA margin (excluding the impact
of procurement) to be within a range of 7.5-8% in FY24.
4.1 Unreasonable prejudice and
forward-looking statements
We’ve omitted information about our internal budgets and internal
forecasts from this review. We’ve also omitted details of our
business strategy. This is on the basis that doing so would have
been likely to result in unreasonable prejudice towards us.
This review contains forward-looking statements. These include
statements of our current intentions, opinions and expectations
about our present and future operations, events and financial
prospects. While these statements reflect our expectations on
the date we published this review, they’re not certain and are
susceptible to change. We make no representation, assurance
or guarantee as to the accuracy or likelihood of fulfilling any
such forward-looking statements (whether express or implied)
except as required by applicable law or the ASX Listing Rules. We
disclaim any obligation or undertaking to publicly update such
forward-looking statements.
85
Worley Annual Report 2023 5. Risk management
5.1 Our approach to risk management
Our ability to create and protect value is underpinned by our approach to risk management and our culture of encouraging transparent
communications. This involves visible leadership, identifying the material risks we face and making informed decisions - decisions that
align to our ambition and values, and lead to increased value for stakeholders.
Our Board sets the Group’s risk appetite and considers the amount and type of risk it’s prepared to pursue, retain and take. This is
operationalized within our processes and procedures. In combination with our risk management processes, we take a systematic
and tailored approach to risk activities to support success and create value. The Board requires risk management performance to be
monitored, reviewed and reported throughout Worley.
5.2 Our risk management framework
Our risk management framework provides the foundation for creating and protecting value and empowers our people to manage
uncertainty. We align with the ISO 31000:2018 Risk Management – Guidelines Principles and Framework, and we frame our risk
management roles and responsibilities around the Institute of Internal Auditors’ Three-lines Model. This provides a strong governance
and risk management platform for the management of all risks, including opportunities and threats. The illustration below highlights our
framework and key responsibilities.
Risk management framework
Create
I Protect
I Anticipate
Enablers
Culture and values
Data and tools
Capability
Governance
• Purpose led with tone from the top
• Informed decisions through
exploring uncertainty and
challenging thinking
• Insights and forward-looking data
• Macro trend analysis and
digital tools
• Engaged business with
continuous learning
• Risk team expertise and
competency framework
• Business systems, processes
and controls
• Risk tolerance to drive risk
escalation and decision-making
Board and Committees
Governance and oversight of enterprise risks
• Sets strategy, ambition and risk appetite
• Strategic decision making and alignment with remuneration
• Risk reporting
• External disclosures
Chief Executive Officer
Group Executive
Manages and allocates resources to deliver strategic objectives and designated risk owners for our enterprise risks
• Strategy execution and transformation
• Business performance and Key Risk Indicators
• Risk-informed decision-making
• Manage risk and report to Board
External audit
Provides external
independent
assurance of
performance
First line – risk ownership
Second line – risk enablement
Third line – risk assurance
The business and all employees
Group functions
Responsible for owning,
managing and reporting risk
in their operations and ensuring
controls are in place.
Support to first line and provide
independent challenge. Risk group
responsible for risk framework and
policies to enable a consistent
approach to risk across the Group.
Internal audit and third-party
audit providers
Responsible for independent
assurance on effectiveness
of the control environment in
relation to risk materiality.
Risk process
Engage, consult, communicate | Set objectives and context | Identify, analyze, evaluate
Innovate, plan, act | Monitor, review, report | Learn, improve, perform
86
Operating & financial review5. Risk management Overview
Context & strategy
Operating & financial review
Financial statements
5.3 Our risk management process
The International Integrated Reporting Framework guides our
principal (material) risk reporting, which aims to disclose risks that
substantively may affect our ability to create value. The Board
Audit and Risk Committee and Group Executive regularly meet to
review our principal risks, our performance and the effectiveness
of our controls. They also monitor key risk indicators to assess
whether operations are working within our risk appetite.
Risk identification
We adopt a top-down and bottom-up approach to identifying risks
that affect or may affect our ability to create value. We view this
from the perspective of the risk’s effect on the Group’s strategic
objectives and our ability to realize them.
To help us identify risks, we work with external and internal
stakeholders. This work includes, and is not limited to, existing
and prospective customer engagements, town hall sessions and
surveys, investor presentations and roadshows, business partner
and joint venture meetings and industry, regulator and policy
maker interactions.
Risk evaluation and prioritization
We conduct assessments and workshops to evaluate and prioritize
risks, including emerging risks which may present us with medium
to long-term risk exposure. We use qualitative and quantitative
methods to define risk consequences. We view consequences
across a spectrum of possible financial and non-financial impacts,
such as occupational health and safety, operational, strategic,
reputational and regulatory. To prioritize risks, we use our Group
risk matrix to consider the combination of a risk’s consequence
and likelihood. This enables us to identify our most significant
potential risks.
We document risks within risk registers to support communication
and management. These activities are performed at all levels
within the Group, from the Board to business operations and
project delivery. Our risk management framework enables us
to openly share and communicate significant risks to ensure
appropriate management and Board oversight.
Risk disclosure and reporting
We present our risks as opportunities and threats. These have
remained relatively stable over the last 12 months. The following
pages disclose our principal enterprise opportunities and threats.
Worley Annual Report 2023
87
5.4 Our principal opportunities and threats
Each year, we identify and seek to manage our threats and opportunities over the short, medium, and long term.
Short term (1 to 2 years)
Medium term (2 to 5 years)
Long term (5 to 10 years)
S
M
L
Our opportunities
Delivery of strategy and ambition
Our short-term horizon is focused on the immediate financial planning period.
Our medium-term horizon is focused on our strategic business plan in line with our ambition.
Our long-term horizon is focused on global trends and our net-zero aspirations.
Priority: High Outlook: M
L
Context and description
This covers our ability to execute and manage our transformation and realize our purpose and ambition.
It includes investment and divestment at the pace and quality a dynamic environment requires.
Through our global footprint and diverse capabilities, we aim to achieve market leadership in delivering sustainability solutions, which
represents one of our most significant opportunities.
How we are managing this opportunity
Our collaboration frameworks and partnering models guide the delivery of our ambition.
We continue to focus on:
• dedicated transformation program to accelerate new sustainability solutions for growth
(see page 28)
• established multi-tier strategic architecture to align planning and execution across
the Group
• enterprise-wide change management and learning program to transition towards
sustainability-related business in existing or new markets
• program governance activities performed by our Venture board that support effective
decision-making
• acquisitions, partnerships and divestments, which the Board assesses and approves.
Indicators
• Sustainability revenue
• Shareholder wealth
• ESG ratings
• Growth in strategic focus areas
Value drivers
Energy transition and emerging technology
Priority: Medium Outlook: S
M
L
Context and description
This covers our ability to navigate the Group’s portfolio through the energy transition, using new and developing process, digital
technologies and our intellectual property to help us grow value.
As the world transitions towards a lower-carbon economy, the most influential economies and companies have pledged
decarbonization and electrification targets. This is accelerating the energy transition and leading to growth opportunities.
We will enable our growth through entry into new markets and technologies to deliver our sustainability commitments, diversify our
services and realize our position as leaders in sustainable solutions.
How we are managing this opportunity
Our strategy guides us, and we continue to:
• explore energy transition opportunities to inform and prioritize our Transformation
Program, including market data analysis, macro trends, scenario analysis and
multi-dimensional deep dives (see page 24)
Indicators
• Sustainability revenue
• Gross margin
Value drivers
• keep abreast of technological, market and policy changes through our work with research
institutions such as our Princeton partnership and other industry bodies (see page 78)
• pursue partnerships to support new process and digital technologies (see page 28)
• develop new commercial solution-based models and our intellectual property to help us
achieve our sustainability-related revenue target (see page 28).
88
Operating & financial review5. Risk management
Overview
Context & strategy
Operating & financial review
Financial statements
Our threats
Information and cybersecurity
Priority: High Outlook: S
M
Context and description
This covers our ability to use IT systems and networks and ensure the confidentiality, integrity and availability of Worley and customer
data.
Cybersecurity is complex and ever changing. Cyberattacks and data breaches are at an all-time high and continue to be a major
threat to organizations.
Unauthorized access, cyberattacks or internal unintentional human error could all compromise our operational reliability and security.
This could lead to business disruption, loss of critical, sensitive or personal data and related fines or penalties.
How we are managing this threat
We manage and support information and cybersecurity across the business with:
• regular reviews and updates of information security policies and standards in line with
international standard ISO 27001 (see page 64)
• cybersecurity framework of process controls, which include automated surveillance,
system, network and end-point protection, detect and respond capability and 24/7
monitoring, threat hunting and auditing (see page 64)
• employee cybersecurity education programs, including phishing awareness and
testing campaigns (see page 64)
• data protection office management of employees, third parties and customers’
data security (see page 64)
• regular exercises to test response and recovery procedures and ensure business
continuity and resilience.
Indicators
• System availability
• Threat hunting and audits
• Security monitoring and alerting
Value drivers
Major business disruption and resilience
Priority: Medium Outlook: S
M
L
Context and description
This covers our ability to prepare, manage and recover operations from a major business disruptive event.
We operate in a dynamic environment subject to multiple events, including geopolitical conflict, natural hazards, global health crises
and supply chain disruption.
Failure to maintain business continuity could result in diminished financial returns and loss of value.
How we are managing this threat
We continue to strengthen our resilience through:
• maintaining a diverse geographic and market footprint
• crisis response and business continuity framework led by our R3 (Ready, Response,
Recovery) team. This includes processes relating to physical, personnel, supply chain
and cyber risks
• simulation exercises and discussions with senior leaders
• scenario planning (strategic and financial modelling) and geopolitical analysis
• key control assessments that support and improve business continuity plans.
Indicators
• Market intelligence and scanning
• Business operational monitoring
• Internal control compliance
Value drivers
89
Worley Annual Report 2023
Talent
Priority: High Outlook: S
M
Context and description
This covers our ability to retain, attract and engage diverse talent and build skills for the future.
The global talent market remains challenging and requires innovative programs to source and build skills of the future.
If we fail to build new capabilities and attract and retain talent, it could impact our ability to win work, deliver our contractual
requirements and achieve our objectives.
How we are managing this threat
Our people enable us to realize our purpose and deliver a sustainable world. We continue to:
Indicators
• Diversity and inclusion metrics
• streamline recruitment processes and manage succession planning (see page 75)
• Engagement
• recognize and reward performance and maintain competitive remuneration frameworks
• Turnover
• provide hybrid working arrangements that involve a mix of working from home, office
and site
Value drivers
• strive towards our diversity and inclusion targets and enhance associated programs
(see page 77)
• encourage continuous learning through self-directed and structured learning programs.
Project delivery
Priority: Medium Outlook: S
M
Context and description
This covers our ability to execute quality projects on time and within budget, meet contractual obligations and customer expectations,
and maintain core operations while growing our sustainability portfolio.
We have a globally diverse skill set to deliver value to our customers across all major energy sectors. This enables us to deliver specialist
consultancy advice through to delivering large complex projects.
If we fail to manage our contracts or deliver poor quality work, we could find ourselves in disputes with our customers around fees,
costs or delays. This could lead to legal action and reputational damage, and reduce future significant project awards.
How we are managing the threat
We support our consultants, engineers, construction workers and other project delivery
specialists with:
• project delivery framework to support execution through knowledge and management
systems, standardized delivery applications and global specialist capability networks
(see page 60)
Indicators
• Cash collection
• EBITA
• Margin protection and growth
• Customer feedback
• project risk exposure assessments to determine management seniority for bid
Value drivers
decision-making
• project delivery group support during project initiation for our key projects and embed
lessons learnt into execution strategy
• commercial management framework that ensures our contracts are compliant and we
manage and approve scope and contract variations effectively
• no engagement in material lump sum turnKey EPC projects.
90
Operating & financial review5. Risk management
Overview
Context & strategy
Operating & financial review
Financial statements
Safety, health and well-being
Priority: Medium Outlook: S
M
Context and description
This covers our ability to ensure the safety, health and well-being of our people when working.
We sometimes work in high-risk geographies, travel long distances by road and engage in construction and operating activities.
This heightens the risk of injury, illness and loss of life. Our working environment has the potential to have an impact on the mental,
emotional and social well-being of our people.
Our work may also positively or adversely impact the safety, health and well-being of the communities in which we operate.
How we are managing this threat
The safety, health and well-being of our people is our main priority. Without this, nothing else
matters. We continue our:
Indicators
• Safety metrics
• Learning program uptake
• health, safety and well-being standards and Life programs (see page 74)
• security and emergency planning via our R3 (Ready, Response, Recovery) processes and
Value drivers
subject-matter experts (see page 50)
• programs to support diversity, inclusion, psychological safety and well-being
• alignment with ISO 45001 Occupational Health and Safety Management Systems and
ISO 45003, which covers psychological health and safety requirements
• sexual harassment awareness and learning programs (see page 77)
• commitment to safe and responsible presence in the communities in which we operate. We
outline more details in the ethical and business practices and social value risks.
Ethics and business practices
Priority: Medium Outlook: S
M
Context and description
This covers our ability to comply with the law and do our business to the highest standards.
This includes working with customers, partners and suppliers, aligning with our values and ethically managing areas of focus such as
supply chain and human rights practices.
Our behavior is defined through our words and actions. Our Code of Conduct sets out standards of professional behavior, our
responsibilities and the ethical standards we uphold.
If we fail to work ethically or within local laws and regulations, it could lead to a non-compliance or a regulatory breach. This may result
in an investigation, fines, penalties and reputational damage.
How we are managing this threat
We work with our customers, suppliers and partners to enable respectful and responsible
business practices. The following supports us in this:
Indicators
• Ethics hotline
• Code of conduct training
• ethics, compliance and integrity activities, including our ethics helpline, customer and
• Supplier and customer due diligence
supplier due diligence, and code of conduct training (see page 79)
• human rights and modern slavery processes, which include our supplier code of conduct,
supplier due diligence checks, and third-party recruitment provider and agent monitoring
(see page 81)
• Data Protection Office to lead our data privacy compliance program – we outline further
mitigations in the cybersecurity and information technology risk.
Value drivers
91
Worley Annual Report 2023
Social value
Priority: Medium Outlook: S
M
Context and description
This covers our ability to maintain stakeholder (shareholder, customer, community, employees, partners) trust by acting in line with our
purpose and values.
Our reputation ensures we win and retain work, attract and retain employees and secure lines of credit and access to capital.
We collaborate with stakeholders to deliver a more sustainable world.
If we fail to maintain trust among stakeholders, it could lead to negative media attention. It may damage our reputation or
social value, reduce our influence in government and industry groups or lose investor confidence.
How we are managing this threat
Our leadership helps us maintain our relationships. These are underpinned by:
• transparent investor engagement and ESG disclosures (see page 83)
Indicators
• ESG disclosures
• Direct and indirect economic
• engagement with customers, governments and local communities to support sustainable
development
and just transition, for example projects supported by the Worley Foundation (see page 83)
• Ongoing media monitoring
• engagement in political and public policy matters that impact our business. We engage in an
open, responsible and evidence-based manner (see page 83)
• work with Indigenous and First Nations communities (see page 84)
• partnership between Worley and Princeton (see page 78)
• internal programs and support networks, including Pride@Worley, Women of Worley,
Kuumba, Sustainability Champions networks (see page 77).
Value drivers
Liquidity
Priority: Medium Outlook: S
M
Context and description
This covers our ability to maintain sufficient liquidity through cash and borrowing to enable us to meet our payment obligations as and
when they are due.
We take a diversified portfolio approach, sourcing debt capital from different markets. Our global operations focus on customer
engagement to support timely issuance of invoices and cash collection.
If we are unable to generate and maintain sufficient liquidity, we may not be able to fund some or all of our operations and/or achieve
our ambition partially or in full. This may also impact our ability to service debt and lead to challenges in meeting the terms of our
banking covenants.
How we are managing this threat
We manage and support cashflow across the business by:
• dedicated Treasury function that manages group liquidity through funding and investments;
this includes financial risks such as foreign exchange, inflation, interest and financial
counterparty credit
Indicators
• Leverage
• Cash flow
Value drivers
• Treasury Standards and processes to support working capital management, cash flow and
monitoring, including a set of Board-approved authority limits
• diversified debt facilities enabling access to debt beyond traditional banking groups,
including two sustainability-linked bonds
• project and business operation procedures to support timely and effective cash collection.
92
Operating & financial review5. Risk management
Overview
Context & strategy
Operating & financial review
Financial statements
Climate change
Priority: Medium Outlook: S
M
L
Context and description
This covers our ability to manage the physical and transitional risks of climate change for our business and the industries we serve.
For example, extreme weather events could impact our operations and employees as well as our customers.
We seek to use our collective experience and knowledge to help our customers on their journey to reduce the carbon intensity of their
assets. The energy transition gives us opportunities to guide and support our customers and industry. We discuss these further under
the energy transition and emerging technology risk.
We’re committed to playing our part. We have targets for our Scope 1, Scope 2 and Scope 3 emissions (see page 68). We report how
we’re managing our climate-related risk and opportunity in line with the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). We provide our TCFD disclosures in detail on our website and abridged on page 69.
How we are managing this threat
We’ve embedded climate change considerations within core risk and strategy processes.
We also assess climate-related risks and opportunities. We rely upon the following:
• our Climate Change Position Statement, which sets out our response to climate change –
this includes the work we do for our customers, and our own business (see page 67)
• our net-zero roadmap has carbon reduction initiatives – we reduced our Scope 1 and Scope
2 emissions by 14% in FY2023, compared to FY2022
• our risk identification and treatment plans for physical and transitional risks
Indicators
• GHG emissions
• Severe weather events
• Growth in sustainability-related
revenue
Value drivers
for climate change
• our incorporation of scenario planning for extreme weather events into our R3
and resilience.
We will strive to reduce emissions in our value chain. We are disclosing 11 of the 13 Scope 3
emissions categories from the GHG protocol relevant to Worley.
Nature
Priority: Medium Outlook: S
M
L
Context and description
This covers our ability to manage the physical, transitional and systemic risks nature poses to our business and the industries we serve.
Issues of biodiversity loss, pollution (waste) and resource over-extraction (e.g. water) are combining, threatening the natural systems
and ecosystem services they provide.
This poses risks to our business and the ecosystems we operate in. It could lead to acute and chronic events that impact our people,
operations and supply chains. These include restricted site access and the inability to conduct day-to-day business. Our reputation could
be compromised due to our involvement in certain projects that might significantly degrade natural capital.
How we are managing this threat
Our risk management system helps us to identify and act on nature-related risk and
opportunity. The following supports our efforts:
• we launched our nature roadmap to seek positive outcomes for nature (see page 71)
• we have committed to phase out provision of single-use plastics from our owned and
managed offices by the end of FY2025
• we review the water scarcity risk for our operations, using the World Resources Institute
Aqueduct tool
• we disclose our water and waste use at our fabrication yards and offices we own
• we’ll continue to review developments and align with the recommendations of the
Taskforce on Nature-related Financial Disclosures (TNFD) in future reporting.
Indicators
• Implementation of nature roadmap
• Water and waste
• Water scarcity
• Growth in sustainability-related
revenue
Value drivers
93
Worley Annual Report 2023
ESG performance and access to capital
Priority: Low Outlook: S
M
L
Context and description
This covers our ability to raise capital effectively through demonstrating our ESG performance.
As our customers and the rest of the world invest in decarbonization, our portfolio is shifting towards a larger component of
sustainability related work – 35% of aggregated revenue for FY2022 and 41% for FY2023. This allows us to access capital markets
and investors where the cost of capital is reduced for companies with strong ESG credentials.
If we don’t deliver our ESG commitments in line with our purpose and ambition, our ability to access traditional finance channels
will be compromised.
How we are managing this threat
Sustainability is core to our business, and our purpose is at the heart of all we do. Our focus is
to support:
• continuous improvement in our ESG performance (see page 83)
Indicators
• ESG rating agencies
• Sustainability linked loans
• Responsible Business Assessment (RBA) Standard to evaluate unacceptable referred
Value drivers
reputation risk (see page 79)
• retention of investment-grade ratings with credit agencies, showing our strong credit value
proposition (see page 42)
• debt and equity investor relationship engagement with existing and prospective investors
and banks, including issuance of sustainability-linked debt facilities.
Financial disclosures
Priority: Low Outlook: S
Context and description
This covers our internal reporting systems may not accurately reflect economic and geopolitical uncertainty. This could result in us
not meeting financial forecasts indicated to the market.
We operate a complex business, which provides a wide range of services straddling multiple jurisdictions, regulatory frameworks
and currencies.
Inaccurate forecast may adversely affect investor confidence and our share price.
How we are managing this threat
We scan our horizon for emerging risks and hold regular discussions and reviews.
The following supports our efforts:
• centralizing data and systems to increase transparency and accuracy
• budgeting and regular reforecasting
• complying with continuous disclosure requirements
• analyzing scenarios (financial and non-financial)
• broadening our risk management framework to capture emerging risks
that identifythe medium- to long-term outlook.
Indicators
• Quarterly business review updates
• Half and full year reporting
Value drivers
94
Operating & financial review5. Risk management
96
134
135
136
137
138
184
185
193
194
199
162
168
Overview
Context & strategy
Operating & financial review
Financial statements
Financial Report
Directors’ Report
Consolidated statement of financial performance and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to and forming part of the consolidated financial statements
Directors’ declaration
Independent auditor’s report to the members of Worley Limited
Shareholder information
Glossary
Corporate information
Notes to the financial statements
These notes include information you'll need to understand the
financial statements. This information is material and relevant to
the operations, financial position and performance of the Group.
We consider information material and relevant if, for example:
• the amount is significant because of its size or nature
• it's important for understanding our results.
We’ve organized the notes into the following sections:
1. Corporate information
2. Summary of significant accounting policies
138
138
Key numbers
Here we break down the most relevant individual line items in the
financial statements. We also summarize the accounting policies
you’ll need to be familiar with to understand these line items.
3. Segment information
4. Revenue and other income
5. Expenses and losses/(gains)
6. Income tax
7. Cash and cash equivalents
8. Trade receivables, contract assets and other assets
9. Trade and other payables
10. Intangible assets
11. Provisions
Capital
140
143
145
147
148
149
150
151
153
This section includes information about our capital management
practices and shareholder returns for the year.
12. Capital management
155
13. Interest bearing loans and borrowings and lease liabilities 156
14. Changes in liabilities arising from financing activities
15. Issued capital
16. Reserves
17. Earnings per share
18. Dividends
157
157
159
160
161
Risk
This section discloses our exposure to various financial risks. It
also covers their potential impact on our financial position and
performance, and how we manage these risks.
19. Financial risk management
20. Fair values
Structure
This section defines the different aspects of our Group structure.
21. Investments in controlled entities
22. Equity accounted associates
23. Interests in joint operations
Unrecognized items
169
171
173
This section includes information about items that aren’t
recognized in the financial statements but could potentially have a
significant impact on our financial position and performance.
24. Commitments for expenditure
25. Contingent liabilities
26. Subsequent events
Other
173
174
175
This section includes notes required by Australian Accounting
Standards and other regulatory pronouncements. It also includes
important information for understanding our results.
27. Procurement
28. Property, plant and equipment
and right of use (ROU) assets
29. Deferred tax
30. Defined benefit plans
31. Related parties
32. Remuneration of auditors
33. Key management personnel
34. Parent entity disclosures
175
176
178
179
180
181
181
182
95
Worley Annual Report 2023 Directors’ Report
The Directors present their report on Worley Limited (Company) and the
entities it controlled (Group or consolidated entity) at the end of, or during,
the year ended 30 June 2023.
Directors’ message
Principal activities
We’re consistently delivering improved results, and we’re on track
to deliver our ambition that we announced in 2021.
We’ve set out details of our operations and activities in the
Operating and financial review, from page 43.
No other matter or circumstance has arisen since 30 June 2023
that has significantly affected, or may significantly affect:
• the consolidated entity’s operations in future financial years
• the results of those operations in future financial years
• the consolidated entity’s state of affairs in future financial years.
Significant changes in the state of affairs
Earnings per share
On 1 July 2022, Mark Trueman commenced as Group President -
Americas as Karen Sobel stepped down from the role.
Following the receipt of shareholders’ approval at our annual
general meeting on 21 October 2022, we announced the
appointment of PricewaterhouseCoopers (PwC) as the
Company’s external auditor.
Basic earnings per share
Diluted earnings per share
2023 cents
2022 cents
7.0
7.0
32.8
32.6
The underlying basic earnings per share was 66.2 cents. This is an
increase of 5% from last financial year’s result of 62.8 cents.
On 30 May 2023, we announced completion of the sale of our
turnaround and maintenance business in North America. This
includes the power operations and maintenance business, which
is part of our Americas Field Services, for a cash consideration of
approximately AUD $180 million.
We determine underlying basic earnings per share by dividing
the underlying profit attributable to members of Worley Limited
(as set out on page 97) by the weighted average number of
ordinary shares outstanding during the financial year (as set out
in note 17 to the financial statements).
Dividends – Worley Limited
Details of dividends in respect of the current and previous financial
years are as follows:
2023 $’M
2022 $’M
Final dividend for the full year 2023 of
25 cents per ordinary share, to be paid
on 27 September 2023 (unfranked)
Interim ordinary dividend for the half
year – of 25 cents per ordinary share,
paid on 29 March 2023 (unfranked)
Final dividend for the full year 2022 of
25 cents per ordinary share, paid on 28
September 2022 (unfranked)
Interim ordinary dividend for the half
year 2022 of 25 cents per ordinary
share, paid on 30 March 2022
(unfranked)
Total dividends paid/to be paid
131
131
–
–
262
–
–
131
131
262
On 24 October 2022, we announced that the High Court declined
special leave in the shareholder class action. The class action will
return to a further hearing by a single judge of the Federal Court,
in line with the previous orders made by the Full Federal Court.
We will continue to defend all allegations in the class action. Our
defense of the class action continues to be funded by our insurers.
Matters subsequent to the end of the financial year
Since the end of the financial year, the directors have resolved
to pay a final dividend of 25 cents per fully paid ordinary share.
This includes exchangeable shares, unfranked (2022: 25 cents
per share). In line with AASB 137 Provisions, Contingent Liabilities
and Contingent Assets, the aggregate amount of the proposed
final dividend of $131 million isn’t recognized as a liability as at
30 June 2023.
As part of its ongoing portfolio management, subsequent to the
year ended 30 June 2023, Worley has entered into an agreement
to sell Energy Resourcing Group, another of its remaining
non-core businesses. This transaction is subject to regulatory
approval, customary closure conditions and Worley completing
the separation of this business. The transaction is expected to
close within first half FY2024. The sale is not expected to have a
significant impact on Worley’s financial results.
96
Directors’ ReportFinancial statements Overview
Context & strategy
Operating & financial review
Financial statements
Financial performance summary
Review of operations
You’ll find a detailed review of our operations and the results of those operations in the Operating and financial review on page 43.
The Operating and financial review is incorporated into, and forms part of, this report.
A summary of the consolidated revenue and results for the current and previous financial years are as follows:
Consolidated
2023 $’M
2022 $’M
Revenue and other income
Depreciation
Amortization
Earnings before interest, tax and amortization (EBITA)
Net interest expense
Amortization of acquired intangible assets
Profit before income tax expense
Income tax expense
Statutory profit after income tax expense
Non-controlling interests
Statutory profit after income tax expense attributable to members of Worley Limited
Costs in relation to cost saving programs
Impact of transformation and restructuring:1
Shared services transformation
Payroll and other restructuring costs
Other transformation and transition costs
Loss on sale of disposal group and related expenses2
Net impact of historical legal matters
Impact of withdrawal from Russia
Other
Net tax expense on items excluded from underlying earnings
Underlying profit after income tax expense attributable to members of Worley Limited
Amortization of intangible assets acquired through business combinations
Tax effect on amortization of intangible assets acquired through business combinations
Underlying profit after income tax expense and before amortization of acquired intangible assets3 attributable to
members of Worley Limited
11,333
(51)
(114)
345
(110)
(89)
146
(100)
46
(9)
37
50
50
–
–
240
–
–
–
(46)
281
89
(22)
348
1.
2.
3.
Impact of transformation and restructuring costs comprise of shared service transformation and in the prior year also comprised payroll ,other restructuring and
transition cost.
The Group has excluded Loss on disposal and related expenses (refer to note 21(C)) of the Annual Financial report for further details and a resulting tax impact from
the underlying results.
The Directors consider underlying profit information is important to understand the sustainable performance of the Company by excluding selected significant items
and amortization on acquired intangible assets.
9,705
(54)
(113)
449
(60)
(95)
294
(117)
177
(5)
172
67
53
15
(1)
–
16
14
1
(12)
258
95
(24)
329
97
Worley Annual Report 2023
Revenue and other income
Less: Procurement revenue at nil margin (including share of revenue from associates)
Add: Share of revenue from associates
Less: Interest income
Aggregated revenue1
Consolidated
2023 $’M
2022 $’M
11,333
(1,192)
794
(7)
10,928
9,705
(946)
310
(4)
9,065
APAC
EMEA
Americas
Global support costs2
Strategic costs3
Interest and tax for associates
Underlying EBITA
Aggregated Revenue1
Segment EBITA
Segment EBITA margin
2023 $’M
2022 $’M
2023 $’M
2022 $’M
2,059
4,023
4,846
10,928
1,710
3,168
4,187
9,065
222
329
297
848
(164)
(37)
(12)
635
181
283
271
735
(154)
(30)
(4)
547
2023 %
10.8
8.2
6.1
7.8
2022 %
10.6
8.9
6.5
8.1
5.8
6.0
Aggregated revenue was $10,928 million. This is an increase of
21% on the previous financial year. Underlying EBITA of $635 million
was up 16% from the last financial year result of $547 million.
The underlying EBITA margin on aggregated revenue for the
Group, decreased to 5.8% compared with 6.0% in 2022. After
tax, the members of Worley Limited earned an underlying profit4
margin on aggregated revenue of 3.2%, compared with a margin
of 3.6% in 2022.
The underlying effective tax rate (underlying NPAT) rose to 33.5%,
compared with 32.9% in 2022. The key driver of this increase is an
increase in certain non-deductible costs under US tax law.
The Group decreased its cash position to $436 million (2022:
$519 million) with gearing (net debt/net debt plus total equity)
at financial year end of 24.6% (2022: 22.6%).
Operating cash inflow for the period was $260 million, compared
with $316 million in 2022. Cash inflow from investing activities
was $65 million (2022: outflow of $62 million).
Review of operations
We’ve set out the likely developments in our operations in future
financial years, and the expected outlook of those operations in
Context and strategy on page 18.
Rounding of amounts
In line with ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191, we’ve rounded off amounts to
the nearest million dollars, unless we state otherwise. We’ve
represented amounts under $500,000 that we’ve rounded
down with a 0.0.
Aggregated revenue is defined as statutory revenue and other income plus the share of revenue from associates, less procurement revenue at nil margin, pass-through
revenue at nil margin, and interest income. The Directors of Worley Limited believe the disclosure of the relevant share of revenue from associates provides extra
information about the financial performance of Worley Limited Group.
Excluding global support-related restructuring costs (refer to note 3(E) to the financial statements).
Strategic costs comprise costs for strategic hires and agile team development in targeted sustainability growth areas, digital enablement, internal training and development,
and strategic partnerships creation and building to deliver sustainable solutions at scale.
The Directors consider underlying profit information important to understand the sustainable performance of the Company by excluding selected significant items and
amortization on acquired intangible assets.
1.
2.
3.
4.
98
Directors’ ReportFinancial statements Overview
Context & strategy
Operating & financial review
Financial statements
Board governance
Corporate governance statement
You can access the Company’s Corporate Governance Statement
for the year ended 30 June 2023 on the corporate governance page
in the investor relations section, of our website.
Indemnities and insurance
Under the Company’s Constitution, we indemnify each current and
former officer of the Group against certain liabilities and costs they
might incur as an officer of the Group.
Non audit services
Following the receipt of shareholders’ approval at Worley’s
annual general meeting on 21 October 2022, we announced
the appointment of PricewaterhouseCoopers (PwC) as the
Company’s external auditor. PwC was responsible for the
FY2023 external audit. Chris Dodd, PwC partner, was appointed
as Worley’s external audit engagement partner, following the
retirement of Matthew Lunn. PwC performed non-audit services
in addition to its statutory audit duties. Ernst & Young, our
outgoing auditor, performed non-audit services in addition to its
statutory audit duties up to 21 October 2022. The total fees for
non-audit services for the period amounted to $4,157,806.
The Board has a policy governing the provision of non-audit
services by the auditor. The Audit and Risk Committee has
reviewed the total non-audit services for the period provided
by Ernst & Young until 21 October 2022 and then by PwC. The
Board has accepted the recommendation from the Audit and
Risk Committee that the total non-audit services was compatible
with the general standard of independence for auditors imposed
by the Corporations Act 2001 (Cth) (the Act). The Directors are
satisfied that the non-audit services the auditor provided did not
compromise the auditor independence requirements of the Act
for the following reasons:
• the Audit and Risk Committee reviewed all non-audit services to make
sure they did not impact the integrity and objectivity of the auditor
• none of the services undermine the general principles relating
to auditor independence in Accounting Professionals and Ethical
Standards (APES) 110 Code of Ethics for Professional Accountants.
This includes:
- not reviewing and auditing the auditor’s own work
- not acting in a management or decision-making capacity for the Group
- not acting as advocate for the Group
- not jointly sharing economic risk and rewards.
A copy of the auditor’s independence declaration, as required under
Section 307C of the Act, is as follows:
We also indemnify each current and former officer of the Group
against certain liabilities and costs they might incur by acting as
an officer of another body corporate at the Company’s request.
This indemnity does not cover any liabilities or costs that we’re
prohibited from indemnifying under the Act.
We’ve also entered into deeds of access, indemnity and insurance
with certain officers of the Group. Under those deeds, we agree
(among other things) to:
• indemnify the officer to the extent permitted by law and the
Company’s Constitution
• maintain a directors’ and officers’ insurance policy
• give officers access to Board papers.
We maintain a directors’ and officers’ insurance policy that, subject
to certain exemptions, covers former and current officers of the
Group. During the financial year, we paid insurance premiums to
insure those officers. The insurance contracts prohibit us from
disclosing the amounts of the premiums we paid and the nature
of the liability covered.
Environmental regulation
The majority of our customers are responsible for obtaining
environmental licenses for their projects and assets. We typically
help customers, who own or operate plant and equipment or have
obligations over natural resources, to manage their environmental
licenses and responsibilities.
We do have environmental responsibilities, which relate to
complying with environmental controls and exercising reasonable
care and skill in our design, construction management, operation
and supervising activities. We manage the risks associated
with environmental issues through our risk management and
assurance systems.
We comply with all environmental regulations that apply to
us and our work. The Company confirms, for the purposes
of Section 299(1)(f) of the Act, that it is not aware of any
environmental regulations under the laws of the Commonwealth
of Australia, or of a State or Territory of Australia that the Group
has breached.
Auditor’s Independence Declaration
As lead auditor for the audit of Worley Limited for the year ended 30 June 2023, I declare that to the
best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Worley Limited and the entities it controlled during the period.
Chris Dodd
Partner
PricewaterhouseCoopers
Sydney
23 August 2023
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
99
Worley Annual Report 2023 Directors
The directors who served at any time during FY2023 or up to the
date of this report are listed below:
Directors' shares and rights
As at the date of this report, the relevant interests of the Directors
in the shares and rights of the Company were:
• John Grill (Chair)
• Andrew Liveris (Deputy Chair and Lead Independent Director)
• Thomas Gorman
• Christopher Haynes (retired 30 June 2023)
• Roger Higgins
• Martin Parkinson
• Emma Stein
• Juan Suárez Coppel
• Anne Templeman-Jones
• Wang Xiao Bin
• Sharon Warburton
• Chris Ashton (Chief Executive Officer and Managing Director)
• Joseph Geagea (appointed 1 July 2023)
Directors
John Grill
Andrew Liveris
Thomas Gorman
Christopher Haynes1
Roger Higgins
Martin Parkinson
Emma Stein
Juan Suárez Coppel
Anne Templeman-Jones
Wang Xiao Bin
Sharon Warburton
Chris Ashton
Joseph Geagea
Number of
shares
34,336,128
17,870
29,000
18,922
34,000
17,000
20,840
18,197
17,382
11,000
22,500
Number of
rights
–
–
–
–
–
–
–
–
–
–
–
176,606
731,320
0
–
You’ll find more details about the rights issued by the
Company in the Remuneration report and notes 15 and 16
to the financial statements.
The number of Board and standing Board Committee meetings held during the financial year, and the number of meetings each Director
attended is below:
Board
Audit and Risk
Committee
Nominations
Committee
People and
Remuneration
Committee
Health, Safety
and Sustainability
Committee
Meetings
held while
a member
Number
attended
Meetings
held while
a member
Number
attended
Meetings
held while
a member
Number
attended
Meetings
held while
a member
Number
attended
Meetings
held while
a member
Number
attended
John Grill
Andrew Liveris2
Thomas Gorman
Christopher Haynes
Roger Higgins
Martin Parkinson
Emma Stein
Juan Suárez Coppel
Anne Templeman-Jones
Wang Xiao Bin
Sharon Warburton
Chris Ashton
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
4
6
6
6
6
4
5
6
6
6
6
6
6
6
6
5
6
6
6
Special purpose Board Committee meetings and briefings convened during the financial year. The Board also convened regular Board
briefings. All non-executive directors are invited to and have access to the papers for the standing Board Committee meetings. During
the financial year, the Lead Independent Director chaired six meetings of the independent non-executive directors.
1. Balance at date of retirement, 30 June 2023.
2.
Andrew Liveris retired as a member of the People and Remuneration Committee (PRC), effective 23 March 2023.
100
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Context & strategy
Operating & financial review
Financial statements
Information on directors and
Group Company Secretary
John Grill
AO, BSc, BEng (Hons), Hon DEng (Sydney),
Hon DEng (UNSW)
Andrew Liveris
AO, BEng (Hons), PhD
Chair and non-executive director since March 2013
Previously Chief Executive Officer and Managing Director from listing in
November 2002 until October 2012.
Director of the company before listing and Director of its predecessor
entities from 1971.
Country of residence: Australia
John was appointed to the Board effective 1 March 2013. He’s
Chair of the Board and Chair of the Nominations Committee,
a member of the People and Remuneration Committee and a
member of the Health, Safety and Sustainability Committee.
John has over 40 years’ experience in the resources and energy
industry, starting his career with Esso Australia. In 1971, he
became Chief Executive Officer of Wholohan Grill and Partners,
the entity that ultimately became owned by Worley Limited. John
has expertise in every aspect of project delivery in the resources
and energy industry. He maintains strong relationships with the
Group’s major customers and was closely involved with the Group’s
joint ventures at a Board level.
John was awarded an honorary doctorate by the University
of Sydney in 2010 in recognition of his contribution to the
engineering profession.
He was appointed an Officer of the Order of Australia in 2014 for
distinguished service to engineering and business in the minerals,
energy and power supply industries, and as a supporter of
advanced education and training. In 2019, John was awarded an
honorary doctorate from the University of New South Wales.
John is also Chairman of the Mindgardens Neuroscience Network
– a partnership between the Black Dog Institute, Neuroscience
Research Australia (NeuRA), South Eastern Sydney Local Health
District (SESLHD) and the University of New South Wales.
Deputy Chair, Lead Independent Director and non-executive director,
Director since September 2018
Countries of residence: Australia and United States of America
Andrew was appointed to the Board effective 5 September 2018.
He’s the Deputy Chair, Lead Independent Director and a member of
the Nominations Committee.
Andrew is a director of IBM, Saudi Aramco, and NOVONIX Limited
– a company supporting lithium-ion battery technologies. Andrew
is the President of Brisbane 2032 Organising Committee for the
Olympic Games (OCOG).
Andrew was formerly the Chairman and Chief Executive Officer of
the Dow Chemical Company and the former Executive Chairman
of DowDuPont. He has over 40 years’ global leadership experience
with the Dow Chemical Company with roles in manufacturing,
engineering, sales, marketing, business and general management
around the world.
Andrew was formerly the Vice Chair of the Business Roundtable
and was the Chairman of the United States Business Council.
He has held previous Australian Government roles as Chair
of the National COVID-19 Coordination Commission (NCCC)
Manufacturing Taskforce and Co-Chair of the Territory Economic
Reconstruction Commission.
Andrew is a chartered engineer, a fellow of the Institution of
Chemical Engineers and a fellow of the Australian Academy of
Technological Sciences and Engineering (now Australian Academy
of Technology and Engineering). He earned a bachelor’s degree
(first class honors) in Chemical Engineering from the University of
Queensland and was awarded the University Medal. In 2005, he
was awarded an Honorary Doctorate in Science by his alma mater
and was named alumnus of the year. He was appointed an Officer
of the Order of Australia in 2014 for his services to international
business and was awarded an Honorary Doctorate in Engineering
from Michigan State University in 2015.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
NOVONIX Limited
Non-executive
director
1 July 2018
n/a
101
Worley Annual Report 2023 Joseph Geagea
BEng, MEng
Thomas Gorman
BA, MBA, MA
Non-executive director, Director since July 2023
Non-executive director, Director since December 2017
Country of residence: United States of America
Country of residence: United States of America
Joseph was appointed to the Board effective 1 July 2023. He’s
a member of the People and Remuneration Committee and the
Nominations Committee.
Joseph had a 40-year career with the Chevron Corporation before
retiring in June 2022 as Executive Vice President and Senior Advisor
to Chevron’s Chairman and CEO. During his time with Chevron,
Joseph’s roles included Executive Vice President of Technology,
Projects and Services and President of Chevron Gas and
Midstream. Joseph was also responsible for Chevron’s upstream
activities in Bangladesh, Cambodia, China, Myanmar, Thailand and
Vietnam and led Chevron’s downstream operations in East Africa,
the Middle East and Pakistan.
Joseph is on the board of trustees of Houston Grand Opera. He was
previously a director of the National Action Council for Minorities
in Engineering and served on the board of trustees of the San
Francisco Ballet Association.
Joseph holds a Bachelor of Civil Engineering and a Master of Civil
Engineering from the University of Illinois. He is a member of the
American Society of Civil Engineers.
Thomas was appointed to the Board effective 18 December
2017. He’s a member of the Health, Safety and Sustainability
Committee, the People and Remuneration Committee and the
Nominations Committee.
Thomas’ appointment follows his 30-year career in executive
positions at Ford Motor Company and Brambles Limited. He retired
as Chief Executive Officer of Brambles in February 2017. He’s
worked in multiple functions including finance, operations, logistics,
marketing and business development across the United States,
England, France and Australia.
Thomas is a director of Orora Limited, Sims Limited and
Alcoa Corporation.
Thomas graduated cum laude from Tufts University with degrees
in economics and international relations.
He obtained an MBA with distinction from Harvard Business
School and an MA in international relations from the Fletcher
School of Law and Diplomacy at Tufts University.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
Orora Limited
Sims Limited
Non-executive
director
Non-executive
director
2 September 2019 n/a
15 June 2020
n/a
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Operating & financial review
Financial statements
Christopher Haynes
OBE, FREng, BSc (Hons), DPhil, CEng,
FIMechE, FIEAust
Roger Higgins
BE (Hons), MSc, PhD, FIEAust, FAusIMM
Non-executive director, Director since January 2012
Non-executive director, Director since February 2019
Country of residence: United Kingdom
Country of residence: Australia
Christopher was appointed to the Board effective 1 January
2012. He’s a member of the Health, Safety and Sustainability
Committee, the People and Remuneration Committee and the
Nominations Committee.
Christopher had a 39-year career with the Shell Group of
Companies and their affiliates. He’s lived in many countries,
working in oil and gas, LNG and chemicals businesses, primarily
in project development, delivery and operations. Christopher was
seconded to Woodside from 1999 to 2002 where he was General
Manager of the North West Shelf Venture. He then became
Managing Director of Shell’s operations in Syria and of Nigeria
LNG Limited. In 2008, Christopher assumed responsibility for the
delivery of Shell’s major upstream projects worldwide. He retired
from Shell in August 2011. Christopher was a non-executive
director of Woodside Energy Group Limited from 2011 to 2023.
Christopher graduated from the University of Manchester with
a Bachelor of Science with honors in mechanical engineering.
He obtained a Doctor of Philosophy in Applied Sciences from the
University of Sussex. He’s a chartered engineer and fellow of
the Institution of Mechanical Engineers in the United Kingdom
and, in 2015, was elected a fellow of the Royal Academy of
Engineering in the United Kingdom. He is a fellow of the Institution
of Engineers, Australia.
Christopher was appointed to the Order of the British Empire
in June 2009 for his services to the British oil and gas industry
in Nigeria.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
Woodside Energy
Group Ltd
Non-executive
director
1 June 2011
28 April 2023
Roger was appointed to the Board effective 20 February 2019.
He’s Chair of the Health, Safety and Sustainability Committee
and a member of the Nominations Committee.
Roger’s experience is in mining and operations. He’s a
non-executive director of Newcrest Mining Limited and
Hillgrove Resources Limited. He is an adjunct professor with the
Sustainable Minerals Institute at the University of Queensland.
Roger has previously held senior executive positions with Teck
Resources Limited, BHP Billiton and Ok Tedi Mining Limited. He is a
former Chair and non-executive director of Demetallica Limited.
Roger holds a Bachelor of Civil Engineering with honors from the
University of Queensland, a Master of Science in hydraulics from
the University of Aberdeen and a PhD in Water Resources from
the University of New South Wales. He is a fellow of the Institution
of Engineers Australia and the Australasian Institute of Mining
and Metallurgy.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
Newcrest Mining
Limited
Non-executive
director
Minotaur Exploration
Limited
Non-executive
director and
Chairman
Demetallica Limited Non-executive
director and
Chairman
Hillgrove Resources
Limited
Non-executive
director
1 October 2015
n/a
1 July 2016
31 January 2017
25 February
2022
16 December 2021
(ASX listed on 26
May 2022)
6 December
2022
6 June 2023
n/a
103
Worley Annual Report 2023 Martin Parkinson
AC, BEc, MEc, MA, PhD
Emma Stein
BSc (Hons), MBA, FAICD
Non-executive director, Director since February 2020
Non-executive director, Director since December 2020
Country of residence: Australia
Country of residence: Australia
Martin was appointed to the Board effective 24 February
2020. He is a member of the Audit and Risk Committee and the
Nominations Committee.
Martin is a director of O’Connell Street Associates, North
Queensland Airports and Champions of Change Coalition – a group
of executive leaders committed to achieving gender equality and
advancing women into senior leadership positions in the private
and public sectors. Martin is also the Chancellor of Macquarie
University and Co-Chair of the Great Barrier Reef Foundation.
Martin previously served as Secretary for the Australian
Government’s Department of the Prime Minister and Cabinet,
Australian Treasury and Department of Climate Change. Martin
is a former director of Orica, the Cranlana Program for Ethical
Leadership and the German-Australian Chamber of Industry and
Commerce. He’s been a member of the Board of the Reserve
Bank of Australia, Infrastructure Australia, the Council of Financial
Regulators, the Board of Taxation and the Territory Economic
Reconstruction Commission. He was previously Chair of the
Australian Office of Financial Management.
Martin holds a PhD and an MA from Princeton University, an MEc
from the Australian National University and a BEc (first class
honors) from the University of Adelaide. Martin was awarded the
degree of Doctor of the University (honoris causa) by the University
of Adelaide.
Martin was awarded a Companion of the Order of Australia and
has a Public Service Medal. He is a fellow of the Academy of
Social Sciences in Australia, the Institute of Public Administration
Australia and the Australian National Institute of Public Policy. He
is a life member of the Australian Business Economists.
Emma was appointed to the Board effective 10 December 2020.
She is Chair of the People and Remuneration Committee and a
member of the Health, Safety and Sustainability Committee and
Nominations Committee.
Emma currently serves as a non-executive director of
Adbri Limited.
Emma is a former non-executive director of Alumina Limited,
Cleanaway Waste Management Limited, Programmed
Maintenance Services Limited, Transfield Services Infrastructure
Fund, Clough Limited, the Diversified Utilities Energy Trust (DUET)
Group and Iberdrola Australia Limited.
Before moving to Australia in 2003, Emma gained international
experience in management and leadership, and strategy
development and implementation in global industrial, energy and
utilities markets. Her career included roles in strategic planning and
operational management in the fuels sectors, specifically, as UK
Managing Director at Gaz de France Energy and UK Gas Divisional
Managing Director at British Fuels.
Emma holds tertiary qualifications in science from the University
of Manchester and a Master of Business Administration (MBA)
from Manchester Business School. Emma is an honorary fellow of
the University of Western Sydney and a fellow of the Australian
Institute of Company Directors.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
Adbri Limited
Cleanaway Waste
Management
Limited
Alumina Limited
Infigen Energy
Limited
Non-executive
director
Non-executive
director
Non-executive
director
Non-executive
director
4 October 2019
n/a
1 August 2011
31 December
2020
3 February 2011
25 May 2021
21 September 2017 21 October
2020 (acquired
by Iberdrola
and delisted)
104
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Financial statements
Juan Suárez Coppel
BE, PhD
Anne Templeman-Jones
BCom, MRM, EMBA, CA, FAICD
Non-executive director, Director since May 2019
Non-executive director, Director since November 2017
Country of residence: Mexico
Country of residence: Australia
Juan was appointed to the Board effective 27 May 2019.
He’s a member of the Audit and Risk Committee and the
Nominations Committee.
Anne was appointed to the Board effective 1 November 2017.
She is a member of the Audit and Risk Committee and the
Nominations Committee.
Juan has extensive experience in energy and resources in the
Americas. He was previously Chief Financial Officer and then
Chief Executive Officer of Petróleos Mexicanos (PEMEX). He was
also a senior executive with Grupo Modelo and an independent
non-executive director of Jacobs Engineering Group Inc.
During the 1990s, Juan was Chief of Staff to the Minister of
Finance, Mexico, a senior executive with Banamex (now Citi),
and Head of Corporate Finance and then Treasurer of Grupo
Televisa, Mexico.
Juan has a PhD in Economics from the University of Chicago. During
the 1980s, he held various academic roles. These include as a
full-time professor in the ITAM Department of Economics, visiting
professor at the Universidad Autónoma de Barcelona Department
of Economics and associate professor at Brown University in
Rhode Island.
Anne is a non-executive director of Commonwealth Bank of
Australia, New South Wales Treasury Corporation, Trifork Holding
AG and Cyber Security Cooperative Research Centre.
Anne is a former Chair and non-executive director of Blackmores
Limited. She is also a former non-executive director of GUD
Holdings Limited, the Citadel Group Limited, HT&E Limited,
Cuscal Limited, HBF Health Limited, Pioneer Credit Limited, TAL
Superannuation Fund, Notre Dame University and the McCusker
Foundation for Alzheimer’s Research.
Anne has executive experience in institutional and commercial
banking, wealth management, insurance, strategy and risk.
She previously held several senior executive roles with ANZ
and Westpac.
Anne has a Master of Risk Management from the University
of New South Wales, an Executive MBA from the AGSM at the
University of New South Wales and a Bachelor of Commerce from
the University of Western Australia. She is a Chartered Accountant
and a Fellow of the Australian Institute of Company Directors.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
Commonwealth
Bank of Australia
Non-executive
director
5 March 2018
n/a
Blackmores Limited Non-executive
28 October 2020
director and Chair
GUD Holdings
Limited
Non-executive
director
1 August 2015
25 November
2022
31 August
2021
105
Worley Annual Report 2023 Wang Xiao Bin
BCom, CPA, GDip
Sharon Warburton
BBus, FCA, FAICD
Non-executive director, Director since December 2011
Non-executive director, Director since February 2019
Country of residence: Hong Kong, China
Country of residence: Australia
Xiao Bin was appointed to the Board effective 1 December
2011. She’s a member of the Audit and Risk Committee and the
Nominations Committee.
Sharon was appointed to the Board effective 20 February 2019.
She’s the Chair of the Audit and Risk Committee and a member of
the Nominations Committee.
Xiao Bin is a non-executive director of Hang Seng Bank Limited.
She was previously an Executive Director and Senior Vice President
of China Resources Power Holdings Company Limited and a
director of Corporate Finance (Asia Pacific) at ING Investment
Banking, responsible for execution of capital markets and merger
and acquisition transactions in the region. Xiao Bin formerly
worked at PricewaterhouseCoopers in Australia in the Audit and
Business Advisory division.
Xiao Bin has over 18 years’ experience in the power industry
including its major shift towards a low-carbon future and
meeting industrial and consumer demand for clean, reliable
and affordable energy.
Xiao Bin qualified as a chartered accountant and certified practising
accountant (CPA) in Australia. She holds a Bachelor of Commerce
from Murdoch University, Australia, and a Graduate Diploma in
Applied Finance and Investment from the Securities Institute of
Australia (now FINSIA).
Sharon has predominantly worked in the construction, mining
and infrastructure sectors. She’s a chartered accountant with
experience in strategy and accounting, holding senior executive
positions at Rio Tinto, Brookfield Multiplex, Aldar Properties PJSC,
Multiplex and Citigroup.
Sharon is a non-executive director of Wesfarmers Limited and
Northern Star Resources Limited and a part-time member of
the Takeovers Panel. She’s an Independent Director of Karlka
Nyiyaparli Aboriginal Corporation RNTBC.
Sharon was formerly the Co-Deputy Chairman of Fortescue Metals
Group Limited, Chairman of the Australian Government’s Northern
Australia Infrastructure Facility and a non-executive director of
NEXTDC Limited.
Sharon holds a Bachelor of Business (accounting and business law)
from Curtin University. She’s a fellow of Chartered Accountants
Australia and New Zealand, and the Australian Institute of
Company Directors.
Sharon was awarded the Telstra Business Woman of the Year
(Western Australia) in 2014 and was a finalist for the Australian
Financial Review’s Westpac 100 Women of Influence in 2015.
Australian listed company directorships
Listed company
name
Nature of
directorship
Date of
commencement
Date of
cessation
Wesfarmers Limited Non-executive
1 August 2019
n/a
director
Blackmores Limited Non-executive
28 April 2021
director
10 August
2023
Northern Star
Resources Limited
Non-executive
director
1 September 2021 n/a
Gold Road Resources
Limited
Non-executive
director
9 May 2016
30 September
2021
106
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Operating & financial review
Financial statements
Chris Ashton
BEng (Hons), MBA, MAICD
Nuala O'leary
LLB, BA
Chief Executive Officer and Managing Director since February 2020
Group Company Secretary appointed August 2016
Country of residence: United States of America
Country of residence: Australia
Nuala was appointed Group Company Secretary in August 2016.
She’s responsible for corporate governance for the Board and the
Group Executive.
Nuala is also responsible for the legal and governance matters
relevant to Worley Limited. These include the capital structure and
regulatory obligations, with Group accountabilities for continuous
disclosure. Nuala has a background in private legal practice,
specializing in corporate litigation and corporate governance. Nuala
holds degrees in law and arts from the University of Sydney and
a Graduate Diploma of Applied Corporate Governance. Nuala is a
solicitor of the Supreme Court of New South Wales.
Chris was appointed Chief Executive Officer and Managing Director
on 24 February 2020.
Chris joined Worley in 1998 and has held many leadership roles
across the Company as it evolved through acquisition and organic
growth. Before becoming CEO, Chris was Chief Operating Officer
responsible for the integration of the ECR business and setting the
strategy for Worley’s transformation.
Before this, he was Group Managing Director for Major
Projects and Integrated Solutions with accountability for growth
and performance.
This included Worley’s fabrication businesses, WorleyCord and
Rosenberg Worley, and the Global Delivery Center. He’s also held
executive roles with responsibility for operations in Europe, the
Middle East and Africa and the power sector globally.
Chris holds a degree in electrical and electronic engineering
with honors from the University of Sunderland and a Master of
Business Administration from Cranfield School of Management.
He has completed the Executive Management Program at Harvard
Business School and the Company Directors Course at the
Australian Institute of Directors.
107
Worley Annual Report 2023 Remuneration report
Audited
Contents
Dear shareholders
110 1. Key management personnel and leadership changes
111 2. Remuneration report snapshot
112 3. FY2023 remuneration outcomes
117 4. Performance and remuneration outcomes over five years
118 5. Remuneration governance
120 6. Executive remuneration structure in detail
126 7. Executive KMP employment agreements
127 8. Non-Executive Director remuneration
128 9. Remuneration tables (statutory disclosures)
On behalf of the Board of Directors, I’m pleased to present our
remuneration report for the financial year ended 30 June 2023.
Our over 48,200 people are at the center of what we do, and our
results reflect their dedication and hard work. We have a strong
remuneration and governance framework that supports our people
strategy, drives performance and holds our leaders accountable
for demonstrating our values, building our culture and keeping our
people safe.
Our executive remuneration outcomes in FY2023 reflect our
strong performance in line with executing our strategy and
delivering on our Ambition: to be recognized globally as a leader
in sustainability solutions.
We’re competing in global talent markets
We operate in over 45 countries across thousands of projects.
To attract, retain and engage the right people, our executive
remuneration must be competitive in the talent markets in which
we operate. For example, there’s a higher level of participation
in equity programs in the US market, where many of our
senior leaders are based, including our KMP. We’re proactive in
competing for talent and use local industry benchmarking and
trend information to inform our decisions. We discuss this further
in section 6.2.
Our executive remuneration
outcomes reflect our strong
performance as we deliver
on our strategy: building
a sustainable, growth
business into the future.
Emma Stein
Chair, People and
Remuneration Committee
$348m
Underlying NPATA
(5.8% growth on FY2022)
41%
Sustainability revenue
(+6pp growth on FY2022)
97.3%
STI business scorecard
outcome
(89% in FY2022)
108
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Context & strategy
Operating & financial review
Financial statements
Culture and governance
Equity outcomes
Our remuneration framework rewards not just the “what” but the
“how”. We’ve embedded multiple ESG Key Performance Indicators
(KPIs) in our Short-Term Incentive (STI) plan, recognizing our
commitment to environmental, social and governance principles.
Our executives must achieve individual KPIs that measure
performance and leadership in their areas of responsibility
and demonstrate our values and behaviors.
Our Board has discretion over final incentive outcomes and
undertakes rigorous reviews of our results, which may include:
• overall financial performance, e.g. quality of earnings
• operational security and risk management
• health and safety
• the experience and conduct of our people
• environmental and community responsibility
• customer satisfaction
• outcomes for our shareholders.
Our approach makes sure payouts are appropriate, reflect real
performance in line with our values and strategy, and avoid
unintended remuneration outcomes. See section 5 for more detail.
Performance and remuneration outcomes
We’ve delivered strong financial performance in FY2023,
resulting in favorable outcomes for our shareholders. This
includes a year-on-year increase in share price of 10.9% and a
5.4% increase in our underlying NPATA earnings per share (EPS).
Our dividend payments have remained consistent over the past
four years. We’ve summarized our remuneration outcomes for
FY2023 below.
Short-Term Incentive (STI)
Our FY2023 business scorecard results include:
• An underlying Net Profit After Tax and excluding Amortization
(NPATA) result of $348m, which is 5.8% growth on FY2022.
• Strong safety outcomes. Our Serious Case Frequency Rate
(SCFR) was 0.03, an improvement on FY2022.
• Ongoing reductions in Scope 1 and Scope 2 carbon emissions.
We are on track to meet our FY2025 reduction targets.
• Progress in diversity and inclusion compared to FY2022.
• Exceeding our target for sales in sustainability projects,
measured through gross margin sold.
• Our cash conversion ratio, which measures underlying
operating cash before interest and tax over underlying
group EBITA, was within the range set.
Our executives demonstrated strong leadership in line with our
values to deliver improved outcomes, inspire our people and
create value for our customers. This is reflected in our STI payouts
of 81.1% of maximum for the CEO and other Executive KMP.
For more detail, see section 3.2.
The Board considers the FY2023 STI outcomes to be a fair and
reasonable reflection of executive performance and the results
delivered for shareholders.
We acknowledge shareholder requests for additional disclosure of
our Deferred Equity Plan (DEP) targets. The performance outcome
for our FY2022 DEP was $1,075m in gross margin delivered from
sustainability-related work against a target of $1,000m, exceeding
the target by 7.5%. The Board approved a vesting outcome of 100%.
We didn’t test any Long-term Incentive (LTI) grants this year
following the change from a three-year to a four-year performance
period in 2020.
Remuneration changes this year
In FY2022, we changed the remuneration mix of our executives
to strengthen alignment with shareholders and market practice.
We reduced the maximum STI to 150% of target and increased the
equity components by a commensurate amount.
During FY2023 we reviewed the equity incentive components of
our framework. The review found our framework continues to
meet our objectives and there will be no significant changes to the
structure or performance measures of Worley’s incentive plans for
FY2024.
As disclosed in the 2022 notice of meeting, we increased
fixed remuneration by 14% for our CEO Chris Ashton from
1 October 2022 - the first increase since his appointment to the
role in February 2020. This reflects Mr Ashton’s leadership in
positioning Worley as a leader in global sustainability solutions,
his performance in the role and stewarding the business through
challenging times.
Mr Ashton’s revised total remuneration is above the median
against the ASX comparator group of companies and below the
median against global comparators. The Board is satisfied that his
total remuneration has been set fairly and is appropriate.
There were no changes to Non-Executive Director fees in FY2023,
which have remained the same since July 2019.
Final thoughts
Growing sustainability-related work has underpinned our results
and reflects the dedication and hard work of all of our talented
people. We’re focused on creating value for all our stakeholders:
customers, each other, shareholders, partners and communities.
We’ll continue to review the remuneration framework to ensure it
remains competitive in the global market, aligned to our strategy
and shareholder outcomes, and drives long-term performance.
I look forward to ongoing engagement with our shareholders and
welcome your feedback.
Emma Stein
Chair, People and Remuneration Committee
109
Worley Annual Report 2023 1. Key management personnel and leadership changes
1.1 Key management personnel
We’ve prepared this report in accordance with section 300A of the Corporations Act 2001 (Cth) (Act) and Accounting Standards. It outlines
our remuneration strategy for the financial year ended 30 June 2023 and gives detailed information on the remuneration arrangements
for Key Management Personnel (KMP). KMP are responsible for planning, directing and controlling the Group’s activities, directly and
indirectly. The KMP this report covers are listed below.
Name
Non-Executive Directors
John Grill
Andrew Liveris
Juan Suárez Coppel
Thomas Gorman
Christopher Haynes
Roger Higgins
Martin Parkinson
Emma Stein
Position
Chair
Non-Executive Director and Deputy Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Anne Templeman-Jones
Non-Executive Director
Sharon Warburton
Wang Xiao Bin
Other executive KMP
Chris Ashton
Tiernan O’Rourke
Mark Brantley
Mark Trueman
Non-Executive Director
Non-Executive Director
Chief Executive Officer
Chief Financial Officer
Group President, EMEA and APAC
Group President, Americas
1.2 FY2023 leadership changes
Term
Country of residence
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Australia
Australia and United States of America
Mexico
United States of America
United Kingdom
Australia
Australia
Australia
Australia
Australia
Hong Kong, China
United States of America
Australia
Netherlands
United States of America
Mark Trueman commenced as Group President, Americas on 1 July 2022, replacing Karen Sobel. Mark was previously Executive Group
Director, Growth, responsible for strategy development and sector leadership. Mark joined Worley in 1994 and has led operations in
numerous locations including Singapore and Latin America. Mark is an exceptional leader, and we’re pleased he is leading the growth of the
Americas business.
Christopher Haynes retired from the Board of Directors after 11 years service, effective 30 June 2023.
Joseph Geagea was appointed to the Board as an Independent Non-Executive Director, effective 1 July 2023. He is a member of the
Nominations Committee and the People and Remuneration Committee.
110
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Operating & financial review
Financial statements
2. Remuneration report snapshot
Our purpose
Delivering a more sustainable world
Our ambition
We will be recognized globally
as a leader in sustainability solutions
Supported by our strategic pillars
Our people - We energize and
empower our people to drive
sustainable impact.
Our portfolio - We are our
customers’ most trusted partner,
providing best-in-class solutions.
Our planet - We partner with
customers as stewards of a
more sustainable world.
Globally
competitive
Clearly aligned
to our ambition
Create strong
shareholder alignment
Drive sustainable
outperformance
Our remuneration principles
Our remuneration framework
Component
Fixed salary
Cash and benefits
Purpose
Link to strategy and performance
Reflects the accountabilities and
expectations of the role
• Attracts, motivate and retains executives
• Benchmarked against global industry peer companies and Australian
1 year
companies with global operations of similar size and complexity
Short-Term Incentive (STI)
Cash award
1 year
Deferred Equity Plan (DEP)
Performance rights
Long-Term Incentive (LTI)
Performance rights
2 and
3 year
4 years
Motivates and rewards strong
performance
• Is subject to achieving financial, ESG, strategic, business scorecard and
individual performance KPIs
• Requires stretch performance for at-target payout. Maximum payout
requires outstanding performance above already stretched targets
Rewards executives for strategy
execution over the medium term
• Creates strong shareholder alignment
• Attracts, motivates and retains executives
• Is subject to strategy execution performance hurdle
measured over two years
Rewards executives for long-term
growth in shareholder value
• Create strong shareholder alignment
• Is subject to two performance hurdles, measured over four years:
• 50% subject to earnings per share (EPS) hurdle
• 50% subject to relative total shareholder return (TSR) hurdle
Variable remuneration outcomes snapshot
FY2023 STI
Results
Payout
FY2022 DEP
Results
97.3%
business scorecard
outcome
CEO payout:
121.6% of target | 81.1% of maximum
Other executive KMP payouts:
121.6% of target | 81.1% of maximum
$1,075m Gross Margin delivered
in sustainability-related work,
which is 7.5% above our growth
target of $1,000m.
Payout
100% vesting
Full details in section 3.2
Full details in section 3.3
LTI: No LTI grants were tested this year
111
Worley Annual Report 2023 3. FY2023 remuneration outcomes
3.1 Fixed remuneration changes in FY2023
We increased our CEO, Chris Ashton’s fixed remuneration by 14% to USD 1.4 million, the first increase since his appointment to CEO in
February 2020. We reviewed his fixed and total remuneration against external benchmark data. See section 6.2 for further information
on our benchmarking approach. Mr Ashton’s revised total remuneration is above the median against our ASX comparator group and
below the median against our global comparators. The increase reflects Mr Ashton’s leadership in positioning Worley as a leader in
global sustainability solutions, demonstrated performance in the role and stewarding the business through challenging times. His FY2023
incentive opportunity levels, as a percentage of his fixed pay, remained unchanged.
Mark Trueman’s fixed remuneration was set at USD 538,000 when he was appointed as Group President, Americas, effective 1 July 2022.
The fixed remuneration of other executive KMP did not change in FY2023. We’ll continue to review our executives’ remuneration,
considering market conditions and relevant benchmarks, along with individual factors including their experience, capability, performance
and potential.
3.2 STI outcomes in FY2023
Our STI framework includes a business scorecard comprising goals that apply to all STI participants, and an individual scorecard comprising
individual goals and behavioral assessments in line with our values and Health, Safety and Sustainability (HSS).
X
X
X
=
Fixed
remuneration
STI target
opportunity
Business
scorecard
Individual
scorecard
Overall STI
outcome
3.2.1 STI business scorecard outcomes
Measure
Financial2
Target description1
Weighting
Min
Target
Max
FY2023 Performance
Underlying NPATA
Deliver budget
Cash conversion ratio
Deliver target range
Environment, social and governance (ESG)4
Scope 1 and Scope 2
carbon emissions
Safety
Reduce tons of carbon emitted
Serious case frequency rate (SCFR)
within range
50%
10%
Weighted
payout
outcome
49.3%
10.0%
Diversity and inclusion
17% of Senior Leaders are women
20%
18.0%
60% of total global graduate intake
are women
Progress against agreed inclusion actions
Strategic 3
New business (gross margin
sold) in sustainability
Deliver sales plan to grow new business
10%
Professional services revenue (PSR)
Increase gross margin % in total
professional services revenue
10%
The Board did not apply discretion to the business scorecard outcomes.
10.0%
10.0%
FY2023 business scorecard outcome: 97.3%
1. For further detail on targets, refer to table 3.2.2 on the following page.
2. We cap the maximum STI payout on financial measures at 150% of target. We typically award this for performance of 120% or greater of target.
3. The maximum STI payout on ESG and strategic KPIs is 100% of target.
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Operating & financial review
Financial statements
3.2.2 STI business scorecard explanatory notes
Measure
Financial
Underlying NPATA
Cash conversion ratio
Definition and adjustments
Performance and comments
Net profit after tax excluding post-tax impact of amortization of intangible
assets acquired through business combinations. Underlying means profit
after adjusting for significant/non-operational items not considered
part of our performance. We used underlying NPATA for remuneration
purposes, including the impact of actual currency movements compared to
budget. The FY2023 outcome includes 12 months of the North American
Turnaround and Maintenance business on a proforma basis.
Cash conversion ratio measures underlying operating cash before interest
and tax over underlying group EBITA. This measure replaced days sales
outstanding (DSO) for Executive KMP in FY2023, as the Board felt this
was a more robust measure of both cash inflows and outflows, measuring
the conversion of earnings to operating cash. The FY2023 outcome
has been adjusted to include working capital recovery for the 1-month
post-completion of the North American turnaround and maintenance
business divestment ($43m) and prepayment of software costs ($25m).
$348m underlying NPATA
This is slightly below target, however it represents
growth of 5.8% from FY2022. This is the result
of managing costs, delivering projects well and
winning new business.
86.6% cash conversion ratio
This is within our target range.
Environment, social and governance (ESG)
Carbon emissions
Measured as reduction of Scope 1 and Scope 2 tons of carbon emitted.
For further information, see page 68.
Safety
Measured as a Serious Case Frequency Rate (SCFR). A serious case is
a fatality or permanent disabling injury or illness, or an event with the
potential to result in a fatality or a permanent disabling injury or illness.
The frequency rate is based on the number of cases per 200,000 hours
worked and is a 12-month rolling average.
% of women
Senior Leaders
We use our Organizational Role Framework (typically tiers one to three)
to define senior leader roles. This includes our Group Executive and other
managers who have leadership accountabilities for business units (profit
and loss) and functions.
% of women hired in
total global graduates
Target a minimum of 60% women hires to support gender diversity in the
general workforce. We set a very challenging target to increase the focus
on building a pipeline for gender diversity.
Inclusion action plan
Progress in global action areas following inclusion survey results.
41,422t CO2e Scope 1 and 2 carbon emissions
This is a reduction of 14% from FY2022 and
exceeded our target. This is largely due to
switching a significant number of our operations to
renewable energy.
0.03 SCFR
This is within the range set and an improvement on
FY2022. Sadly, this included the loss of one of our
people, who was killed in a commercial plane crash
in Tanzania while travelling to a project site.
16.3% of senior leader roles held by women
The percentage held steady compared to FY2022.
We met the threshold but fell short of the target.
This will continue to be an area of priority focus.
48% women graduate hires
This is an improvement of 1% on FY2022, but fell
short of our target.
Progress made across all areas. Highlights are:
• completing the piloted inclusive leadership
programs
• completing the review of four key policies
• completing our project to strengthen governance
for diversity and inclusion via council and people
network groups.
Strategic
New business in
sustainability
Measured as Gross Margin Sold in defined sustainability-related
work (decarbonization, resource stewardship, asset sustainability,
environment and society). For further information, see page 26.
Gross Margin Sold in sustainability projects
exceeded the target.
Professional
services revenue
Measured as increase in gross margin percentage in total group
professional services revenue (PSR).
Gross margin percentage in PSR revenue exceeded
the target.
113
Worley Annual Report 2023 3.2.3 Board discretion regarding STI business scorecard outcomes
Each year, the Board reviews Executive reward outcomes to ensure alignment with business and individual performance, the shareholder
experience, the relativity with the broader employee population and market, and community expectations. As a result of this review,
the Board determines whether any discretion is warranted. Discretion can be applied to the STI scorecard outcome (impacting all Group
Executive members) and on the individual outcomes. Discretion can be applied in either an upward or downward direction.
The Board believes the business scorecard assessment for FY2023 is a fair and accurate reflection of overall performance and has not
applied discretion to payment outcomes.
3.2.4 STI individual scorecards
Individual scorecards comprise financial, ESG and strategic KPIs aligned with the executive’s area of accountability, personal leadership
and expected behaviors. KPIs include quantitative and qualitative measures. We differentiate these from business scorecard targets
to avoid rewarding executives twice for the same outcomes. The Board assess performance, considering outcomes and evidence
of behaviors, and determine individual scorecard modifiers.
Below is a summary of the individual scorecard assessment for the CEO.
Individual scorecard
modifier
125%
CEO Key performance comments
Chris Ashton has continued to lead Worley to achieve very strong business outcomes to position us as a globally
recognised leader in sustainability services. Key highlights for FY2023 are:
• achieved strong financial results indicative of increased momentum:
• aggregated revenue increased by 21% to $10.9 billion with $4.5 billion in sustainability aggregated revenue, up 41%.
• Underlying EBITA increased by 16% to $635 million and margins by 1pp to 6.5%
• 41% of overall aggregated revenue is for sustainability-related work, with 77% in our factored sales pipeline.
• developed, implemented, and embedded the enterprise risk uplift program, bringing greater focus and improved
discipline to how we manage risks.
• further progressed the development of our culture through identifying our cultural aspirations to drive growth and
deliver the strategy, developing the culture journey and approach.
• oversaw significant development of the Technology Solutions business with the appointment of a new leader, and
the development of a strategic roadmap to grow this segment of the business. The new Technology Solutions
business will strengthen and grow the existing business, establishing a proprietary technology portfolio for target
segments, and accelerating the scale up of emerging low carbon technologies.
• delivered improvement in margins through a range of business measures with demonstrable results.
Performance for other Executive KMP has been rigorously assessed by the CEO against individual financial and non-financial KPIs and
behaviours. The Board, based on recommendations from the CEO, carefully considered the individual assessments, taking into account
each KMP’s performance in their areas of accountability. In FY2023, there was strong performance in all regions and evidence of each
Executive KMP’s contribution to delivering our Ambition across our strategic pillars: our portfolio, our people and our planet. The Board
applied an individual modifier of 125% for all Executive KMP outcomes, as shown below.
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3.2.5 FY2023 individual STI outcomes
Name
Chief Executive Officer
Chris Ashton
Other Executive KMP
Tiernan O’Rourke
Mark Brantley
Mark Trueman
Business
scorecard
(A)
Individual
scorecard1
(B)
Total as a
% of target
(A x B = C)
Actual STI
awarded2
$000
Maximum
potential STI3
$000
STI paid
as a % of
maximum
STI forfeited
as a % of
maximum
97.3%
125%
121.6%
2,528
3,118
81.1%
18.9%
97.3%
97.3%
97.3%
125%
125%
125%
121.6%
121.6%
121.6%
1,022
777
777
1,260
958
958
81.1%
81.1%
81.1%
18.9%
18.9%
18.9%
Individual scorecard outcomes can range between 0% and 125%.
This is typically paid in October.
1.
2.
3. The minimum potential STI is nil.
3.3 Deferred Equity Plan (DEP) outcomes in FY2023
The DEP is a grant of performance rights, with a performance hurdle measured at the end of year two. Following feedback from
our shareholders, we have disclosed the performance against the targets below.
3.3.1 FY2022 DEP (granted October 2021)
Following the end of the performance period on 30 June 2023, the Board determined the performance hurdle was met in full, as described
below. Tranche 1 will vest and convert to shares on 30 September 2023. Tranche 2 will vest and convert to shares on 30 September 2024.
Both tranches remain subject to continued service and individual performance up to the vesting date.
KPI
Performance measure
Performance
Growth in Gross Margin
Delivered from projects in defined
sustainability-related work
Growth in Gross Margin Delivered in sustainability-related
work, measured from June 2021 to June 2023 on a constant
currency basis. For further information on how we define
sustainability-related work see page 26.
$1,075m Gross Margin Delivered in
sustainability-related work, which is
7.5% above our target of $1,000m.
Vesting
outcome
100%
Vesting outcome
100%
3.4 Long-Term Incentive (LTI) plan outcomes
We didn't test any LTI grants in FY2023, following the change from a three-year to a four-year performance period. We'll test the FY2021
LTI grant on 30 June 2024.
115
Worley Annual Report 2023 3.5 Remuneration received in FY2023 (non-IFRS disclosure)
The table below summarizes the face value of remuneration executive KMP received during FY2022 and FY2023. This differs from the
statutory remuneration table in section 9.1, which presents remuneration in accordance with applicable accounting standards.
Fixed salary
Cash STI
DEP and LTI
Comprises base salary plus superannuation or retirement contributions, paid for FY2023.
Comprises cash STI for FY2023, generally paid in October.
DEP amounts shown represent the face value of the FY2021 DEP tranche 2 and FY2022 DEP tranche 1, following confirmation of
performance outcomes. Executives must be employed at the 30 September 2023 vesting date (or be a confirmed good leaver) in
order for their equity rights to vest.
No LTI grants are due to vest in 2023, following the change from a three-year to a four-year performance period in 2020.
We valued the equity grants using the closing price up to and including 30 June for each financial year: $14.24 for FY2022 and
$15.79 for FY2023. Actual value received will depend on final individual vesting outcomes and share price at exercise.
Benefits
Local benefits provided in line with market practice and items to support international assignments, such as medical insurance and
housing allowances and where applicable, the gross-up of these expatriate benefits for tax purposes. Leave accruals are no longer
shown in this table as they aren’t considered remuneration received - refer to section 9.1.
Name
Executive Director
Chris Ashton
Other Executive KMP
Tiernan O’Rourke1
Mark Brantley2
Mark Trueman3
Total Remuneration
Year
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
Fixed salary
$000
Cash STI
$000
DEP
$000
LTI
$000
Benefits
$000
Total
remuneration
received
$000
Variable
remuneration
received as a %
of total
2,018
1,707
2,528
1,626
1,586
754
1,055
1,022
588
826
524
802
–
4,701
2,819
504
777
350
777
–
254
–
454
159
286
–
5,104
2,480
2,580
913
–
–
–
–
–
–
–
–
–
–
55
38
3
1
513
241
556
–
1,127
280
6,187
4,125
2,334
1,093
2,570
1,274
2,421
–
13,512
6,492
66%
58%
55%
46%
48%
40%
44%
–
1. Tiernan O’Rourke started as CFO on 29 November 2021 and amounts shown for FY2022 reflect this. He was granted FY2022 equity on a pro-rata basis.
2.
Mark Brantley started as Group President, EMEA and APAC and became a KMP on 1 November 2021. In the FY2022 remuneration report, remuneration received from
STI and equity was not apportioned for the period he was a KMP. The FY2022 comparatives have been restated to reflect the apportioned remuneration received.
A proportion of the benefits stated include tax gross-ups for both the US and Netherlands. Tax settlements will occur up to a year after the reporting period, following
tax filing which occurs on a calendar tax year basis for both the US and Netherlands.
3. Mark Trueman started as Group President, Americas and became a KMP on 1 July 2022. Therefore there are no amounts shown for FY2022. A proportion of the benefits
reported includes relocation expenses and gross-ups for tax purposes.
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Financial statements
4. Performance and remuneration outcomes over five years
Measure
2018
2019
2020
2021
2022
2023
FY ending 30 June
Category
Earnings
Underlying NPAT ($million)2
Underlying NPATA ($million)2
Underlying NPAT EPS (cents)
Underlying NPATA EPS (cents)
Shareholder value
Share price ($)3
Dividends paid (cents)
171
182
62.4
66.2
16.86
25
239
260
57.3
62.2
14.71
27.5
338
419
64.9
80.4
8.72
50
202
277
38.6
53.0
258
329
49.2
62.8
281
348
53.5
66.2
11.96
14.24
15.79
50
50
50
Annualized
growth over
five years1
10.44%
13.84%
(3.03%)
0.00%
(1.30%)
14.87%
Underlying NPATA2 results vs STI outcomes
TSR performance relative to our peer comparator group
419
239
277
329
348
i
d
a
p
I
T
S
f
o
%
125
100
75
50
25
0
500
400
300
200
100
0
)
n
o
i
l
l
i
m
$
(
A
T
A
P
N
/
T
A
P
N
)
%
(
R
S
T
200
150
100
50
0
-50
-100
2019
2020
2021
2022
2023
NPATA ($million)
% of target STI paid
% of max STI paid3
Jun 18
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
Worley
25th Percentile
50th Percentile
75th Percentile
Category
Measure
STI
DEP
Average % of target STI paid to executive KMP
Average % of maximum STI paid to executive KMP4
Performance period (years)5
Payout outcome
LTI EPS
Performance period (years)6
EPS % achieved7
Payout outcome8
LTI TSR
Performance period (years)6, 9
TSR % achieved
Relative TSR percentile achieved10
Payout outcome
Tested FY ending 30 June
2019
53.0%
35.0%
–
–
4
(12.6%)
nil
4
47.6%
76.2
100%
2020
65.0%
33.0%
–
100%
3
9.7%
100%
4
3
2021
71.0%
35.5%
–
100%
3
(14.8%)
nil
3
40.0%
(11.4%)
(18.7%)
71.4
92.9%
50.0
50%
46.2
nil
2022
88.4%
59.0%
2
100%
3
0.3%
nil
3
17.5%
35.0
nil
2023
121.6%
81.1%
2
100%
–
–
–
–
–
–
–
Annualized growth over five years is calculated starting from the 30 July 2018 final values.
1.
2. From FY2020, financial measures for earnings are based on underlying NPATA for remuneration purposes. The measure changed from NPAT to NPATA,
3.
4.
5.
following the acquisition of ECR, to make sure remuneration continues to focus on operational performance.
Closing price for Worley shares on June 30 each year.
Maximum STI payout was 150% of fixed salary for FY2019, 200% for FY2020 and FY2021, and 150% from FY2022 onwards.
The DEP was first granted in 2019 and first vested in 2020. From FY2021, we included a performance hurdle, assessed after two years. Under the current
plan structure, 50% of equity rights vest at year two and 50% at year three. See section 6.7 for details.
6. We didn’t test any LTI grants in FY2023, following the change from a 3-year to a 4-year performance period. We’ll test the FY2021 LTI grant in July 2024.
7.
8.
Previously, we’ve reported EPS % achieved above CPI. From FY2022, we report EPS % achieved excluding CPI for all years.
The payout for FY2020 was calculated on the EPS outcome at the time, prior to a restatement relating to FY2020 and FY2021. For details, refer to the
FY2022 Annual Report financial statements note 2E. The payout following the restatement would have been 99.1%
9. We tested two separate LTI TSR tranches in 2020. The FY2017 LTI and FY2018 LTI grants had four-and three-year performance periods respectively.
10. Worley’s TSR performance is measured relative to Worley’s peer group for each grant, see section 6.8 for further detail.
117
Worley Annual Report 2023
5. Remuneration governance
The diagram below shows the process we follow to make remuneration decisions and explains the roles various stakeholders play.
Board
• makes sure remuneration policies and structures are competitive, fair and aligned with our long-term interests
• sets and approves remuneration structures
• approves the amount of remuneration for the CEO, other executives and NEDs.
Audit and
Risk Committee
Advises the Board on:
• risk issues, conduct and
compliance matters that may affect
remuneration outcomes
• financial targets and results, including
any qualitative overlay and adjustments
for remuneration purposes.
Health, Safety
and Sustainability
Committee
Advises the Board on:
• defining ESG KPIs relating to safety
and sustainability
• assessing safety and sustainability
performance and KPI outcomes.
People and
Remuneration
Committee
Advises the Board on:
• remuneration structure and policies
• NED remuneration
• executive performance assessment and
remuneration and, where required,
engages independent advisors for advice
on remuneration structure
and amounts for the CEO,
other executives and NEDs
• the alignment of our remuneration
framework and outcomes with our
purpose, culture and risk appetite
• culture and values, diversity and inclusion
strategies and targets, and leadership
succession.
Nominations
Committee
Reviews and assesses the CEO’s
performance and advises the Board
on the CEO’s remuneration, including:
• amount
• structure
• performance targets.
External market data
and external consultants
Management
We source market data from published reports and independent
surveys. If required, the People and Remuneration Committee
seeks independent advice on the quantum and structure of
remuneration. In these situations, the remuneration advisor
engages with the People and Remuneration Committee Chair.
The People and Remuneration Committee or Board uses advice
and information as a guide only and is responsible for all
decisions.
• The CEO recommends pay increases and variable pay
outcomes for the executives (other than the CEO) at the
request of the Nominations Committee or the People
and Remuneration Committee.
• Management provides information relevant to remuneration
decisions and, if appropriate, liaises with advisors to help the
relevant committee with factual information.
• The Board makes all decisions about executive
remuneration. If appropriate, however, management
is included in the People and Remuneration Committee
and Board discussions.
During FY2023, we engaged external consultants for market practice information and advice. This did not include remuneration
recommendations. The People and Remuneration Committee is satisfied that the information provided was free from undue influence
by any executive.
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5.1 Minimum shareholding requirement (MSR)
5.5 Exercise of rights and allocation of shares
Our MSR aligns executives and NEDs to shareholders,
encouraging them to behave like owners and focus on
building long-term shareholder value.
Executives must retain equity received through incentive plans
until their holding is equivalent to two times their fixed salary
(or four times for the CEO). They must maintain that multiple.
The value of their holding includes all Worley shares held plus
50% of the value of unvested rights. We show the position of
each executive at 30 June 2023 in section 9.3.
NEDs must acquire Worley ordinary shares equivalent in
value to their annual base fee. NEDs are expected to meet the
requirements within their first three-year term. We show the
MSR position of each NED on 30 June 2023 in section 9.6.
For all MSR calculations, we value shares using the higher
of the acquisition price or the five-day volume-weighted
average price (VWAP) for Worley shares up to and including
30 June 2023: $15.69.
5.2 Other equity provisions
Equity rights granted to executives carry:
• no voting or dividend entitlements; and
• no entitlement to participate in new share issues other than
bonus issues and capital reorganizations, where the Board may
adjust the number of rights in accordance with the ASX Listing
Rules. This makes sure there’s no advantage or disadvantage to
the executive.
5.3 Hedging
Our Securities Dealing Policy prohibits NEDs and executives from
hedging unvested equity rights or shares that count towards their
MSR. This makes sure they:
• can’t limit the risk associated with these instruments
• are subject to the same fluctuations in share price as all
other shareholders.
5.4 Clawback and malus provisions
These provisions enable the Board to claw back or lapse an
executive’s equity rights if they believe the executive:
• has acted fraudulently or dishonestly
• has breached their obligations to the Company or another Group
Company, including those outlined in Worley’s Code of Conduct
• received grants based on financial accounts which were
later restated
• is responsible, through negligence or intentional disregard
for procedures and policy, for a serious event that resulted in,
or had the potential to result in, significant harm to people or
our environment.
Once an executive has satisfied all vesting conditions, including
performance hurdles, their equity rights are automatically
exercised and they acquire shares at a nil exercise price, net
of any tax withholding.
Shares allocated to executives at the point of exercise rank equally
with all other ordinary shares. Executives have unencumbered
ownership of vested shares, subject to compliance with Worley’s
Securities Dealing Policy and MSR.
5.6 Cessation of employment
Our policy for termination benefits and entitlements treats leaving
executives fairly and in accordance with the law and market practice.
The policy covers discretion the Board may exercise, and was most
recently approved by shareholder vote at the 2022 AGM.
Where an executive leaves, the Board may exercise its discretion to
determine that the executive retain some or all of a cash incentive
or unvested equity rights. This is known as being a good leaver.
The Board decides the conditions and timing of any payment or
vesting, considering relevant factors including an assessment of
the executive’s contribution and performance. The Board generally
exercises this discretion only in circumstances such as death,
permanent disability, retirement and redundancy.
Typically, good leavers retain a pro-rata portion of their awards
relative to the time they were employed during the performance
period. Cash incentives paid are subject to Worley’s performance
and the executives’ performance. Retained unvested equity
rights remain subject to applicable performance and time
vesting requirements. The Board believes this discretion is in
our best interests.
5.7 Change of control
In a change of control event (where a third party unconditionally
acquires more than 50% of the issued share capital of the
Company), the Board will determine whether to vest any or
all unvested equity rights. The Board would consider pro-rata
performance against applicable performance hurdles, up to the
date of the change of control.
5.8 Dilution limit
The Board has determined that the number of securities we
issue under our equity plans should be capped at 5% of the
Company’s issued share capital over a five-year period. Currently,
the number of securities issued and held in accordance with the
equity plans represents 2.85% of the Company’s issued share
capital (FY2022: 2.77%).
119
Worley Annual Report 2023 6. Executive remuneration structure in detail
Our remuneration framework supports our purpose and strategy. It drives high performance in line with our values, strategic objectives
and risk appetite that can be sustained over time. It must be globally competitive to attract, motivate and retain top talent. It creates
shareholder alignment by incorporating significant equity components. This encourages executives to behave like owners, focus on
building long-term value and stay with us through business cycles.
We’re on a journey to transform both what we deliver for our customers and how we do it. We’re focused on growing our business
with our customers in sustainability and building on our capabilities and technology solutions. We’re also creating a more sustainable
organization through care for our planet, care for our people and communities, and responsible operations.
6.1 FY2023 review
In FY2023, the Board undertook a full review of our executive remuneration framework, with a particular focus on our mid-term and
long-term equity plans: the DEP and LTI. The review was conducted with reference to our remuneration principles: to be globally
competitive, aligned to our Ambition, create strong shareholder alignment and drive sustainable outperformance.
The Board concluded that our framework continues to meet our objectives, and there will be no significant changes to the structure
or performance measures of Worley’s incentive plans for FY2024. We’ll continue to review our remuneration framework to ensure it
remains competitive in the global market and aligned to our purpose, ambition and strategy.
6.2 Benchmarking
We engage independent external consultants to provide benchmark data and trend insights that support our decision-making and help
keep our remuneration levels competitive. Our benchmarking approach considers the size and nature of our business and the global talent
markets we operate in. We analyze individual role benchmarks, including the experience and capability of the executive, their location, the
economic and wages environment, and trends in executive remuneration. We’ll continue to review our benchmarking approach to make
sure it reflects the companies we compete with for talent and the markets we operate in.
Our global comparator groups are:
Our Australian comparator groups are:
1. peer companies in our TSR comparator group
under our LTI (see section 6.8); and
2. companies of similar size in the energy,
chemicals and resources sector in markets in
which we operate (as relevant for each executive),
notably North America, the UK and Europe.
ASX companies operating in the energy,
materials or industrial sector, with a market
capitalization between 50% and 200% of ours,
and those with similar global operations and
complexity to our business.
6.3 Fixed remuneration
We pay our executives competitive fixed remuneration, reflecting the accountabilities and expectations of the role. We set fixed
remuneration relative to market conditions and relevant benchmarks, along with individual factors including their experience, capability,
performance and potential.
Fixed remuneration includes cash base salary or allowances, retirement contributions and any salary-sacrificed components. Executives
are eligible for certain benefits in line with the policies of their local Worley employer and compliance with local legislation. Benefits are
locally competitive to attract and retain executives and support their well-being. Typically, these include retirement contributions (such as
statutory superannuation) and basic insurances (such as disability, life and medical), where they are provided as local market practice. We
may also provide benefits to support the global mobilization of executive talent. We aim to have competitive global mobility policies and
support the safety and well-being of our people and their families.
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Financial statements
6.4 Remuneration mix
Most executive reward is variable and at risk. We incorporate high levels of equity-based remuneration to create strong shareholder
alignment. This graph shows the mix of pay opportunity at minimum, target and maximum performance. At-target vesting assumes 100%
vesting for DEP and 50% (i.e. threshold) for LTI. Maximum values assume 100% vesting for all equity.
CEO
Min
Target
Max
100%
30.5%
23.0%
Other Executive KMP1
Min
Target
Max
100%
36%
27.8%
30.5%
34.5%
28.8%
33.3%
21.4%
17.6%
16.1%
26.4%
19.8%
15.3%
15.3%
23.6%
Fixed salary
STIP
DEP
LTI
1. The pay mix for all other executive KMP is the same.
6.5 Variable remuneration summary
Our executive remuneration framework has three variable components (STI, DEP and LTI), each with a clearly distinguished
performance focus.
Performance focus
Key performance indicators
Payout
YEAR 1
YEAR 2
YEAR 3
YEAR 4
STI (cash)
Running and growing
our business
• Financial
• ESG
• Strategic
priorities
DEP (equity rights)
Transforming Worley by
executing our strategy
LTI (equity rights)
Creating sustainable
shareholder value
• Value (gross
margin) from
customer
sustainability
projects
• Annual cash payment
• 0–150% of target
• Value based on share price
• Performance test at year 2
• 0–50% vesting at year 2
• 0–50% vesting at year 3
• Relative TSR
• EPS growth
• Value based on share price
• Performance test at year 4
• 0–100% vesting at year 4
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Worley Annual Report 2023 6.6 FY2023 Short-Term Incentive (STI)
Feature
Description
Purpose and link
to strategy
The STI Plan focuses executives’ efforts to deliver financial, ESG and strategic priorities relevant to the financial year, motivating
them to achieve outperformance against stretch targets.
Eligibility
Opportunity
Delivery
All executive KMP are eligible to participate. Generally, they need to have been employed for at least three months of the
financial year.
STI targets are 100% of fixed salary for the CEO and 80% of fixed salary for other executive KMP.
Cash
Performance period
One year
Setting performance
conditions and
targets
The Board sets robust annual KPIs and performance levels (minimum, target and maximum). Executives need to achieve a high
minimum (threshold) level of performance before we pay any STI. At-target payout represent stretch performance over and above
day-job performance. Maximum payout for financial targets is 150% and represents outstanding performance.
Performance
conditions
We measure performance through a business scorecard with Group-wide measures that apply to all executives, and individual
scorecards with specific individual measures.
Business scorecard
We set ambitious stretch targets against financial, ESG and strategic KPIs fundamental to the long-term sustainability and
transformation of the business:
• Financial KPIs (60% weighting): underlying NPATA (50%) and cash conversion ratio (10%). These focus executives on annual
operating profit and cash flow management. In FY2023, we replaced the days sales outstanding (DSO) measure with a cash
conversion ratio for our Group Executive, as the Board felt this was a more robust measure of both cash inflows and outflows,
measuring the conversion of earnings to operating cash.
• ESG KPIs (20% weighting): aligned to areas such as climate actions, sustainability, safety, diversity and inclusion, and risk
management.
• Strategic KPIs (20% weighting): priorities that will have the most impact on our transformation. We may measure performance by
quantitative outcomes or qualitative indicators which need more judgement.
The business scorecard is formulaic, with defined metrics and targets for performance levels. Weighting exists for all KPIs except
ESG KPIs. The Board determines an outcome for the entire ESG component, considering the performance against each KPI target.
Individual scorecard
This comprises KPIs aligned with each executive’s area of accountability and may include financial, ESG and strategic measures.
There are clear quantitative and qualitative measures and indicators, differentiated from the targets in the business scorecard to
avoid rewarding executives twice for the same outcomes. The individual scorecard also includes expectations for HSS leadership and
behaviors in line with our values.
Following the end of the financial year, the Board assesses achievement of each KPI relative to the targets set.
The Board also reviews underlying NPATA results for remuneration purposes to make sure executives are:
• being held to account for their actions and delivering the annual target
• considering potential acquisitions or investment and transformational opportunities for their strategic importance and not the
impact on their remuneration outcomes.
For the NPATA KPI, threshold performance is 80% of budget or target. For each 1% increase in performance between threshold and
target, the payout rises 5%. Above target, each 1% increase in performance results in the payout rising 2.5%. Payout is capped at
150% for performance of 120% of target.
For the cash conversion ratio KPI, the minimum performance is the bottom of the budget range. Target performance is within the
budget range, which pays out at 100%. For performance above the budget range, payout may increase up to a maximum of 150%.
The ESG and strategic KPIs, which are typically non-financial measures, have a maximum payout of 100% of target.
The executives’ individual scorecard outcome can modify the business scorecard outcome by between 0% and 125%. Final STI
payouts are capped at a maximum of 150%. The Board assesses achievement of individual scorecard KPIs, relative to the targets
set, and behaviors demonstrated to determine the final individual scorecard modifier. The Board may adjust individual scorecard
outcomes relating to risk or conduct.
Performance
assessment
and payout
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Feature
Description
Board discretion
The Board assesses the funding available for the STI Plan and determines whether to apply discretion to the STI outcomes. It
considers factors over and above performance measured in the business and individual scorecards, including:
Category
Finance
Operations
Example considerations
Quality of earnings and forecasting, strength of balance sheet and cashflow management
Performance of internal controls, digital security and risk management
Health and safety
Any adverse health and safety outcomes over and above the SCFR outcomes
People
Planet
Customers
Shareholders
Voluntary attrition, experience of our people and Code of Conduct breaches
Supporting our customers in reducing their CO2 intensity, and environmental
and community responsibility
Customer satisfaction, including undesired loss of major accounts/projects
Dividend payouts, reputational damage negatively impacting share price
The Board may also consider:
• guidance and recommendations from external stakeholders, including proxy advisors, ASIC, and legislative bodies in the markets
we operate in
• feedback from our people, customers, suppliers, shareholders and communities we operate in
• consultation with independent external advisors as necessary.
The Board believes this approach is rigorous and objective, and avoids unintended outcomes.
Leaver provisions
Executives generally need to be employed on the payment date to receive an STI payment. In certain circumstances, the Board may
allow good leavers to receive a payment. See section 5.6 for further detail.
123
Worley Annual Report 2023 6.7 Deferred Equity Plan (DEP) – FY2023 Grant
Feature
Description
Purpose and
link to strategy
The DEP is designed to attract, motivate and retain staff globally, with particular emphasis on the United States, where nearly
half our executives are located. It further aligns our executives with shareholder interests and encourages decision-making focused
on the mid-to-long term. The performance hurdle rewards executives for achieving business growth in defined sustainability related
work, directly supporting our ambition: to be recognized globally as a leader in sustainability solutions.
Eligibility
All executive KMP are eligible to participate. They generally need to have been employed at the beginning of the performance period
(1 July in the year of grant).
Opportunity
DEP targets are 70% of fixed salary for the CEO and 55% of fixed salary for other executive KMP.
Delivery
Performance rights. Each performance right that vests entitles executives to one Worley share. Rights are granted at no cost to
executives and no exercise price is payable by executives to acquire shares at the time of vest.
Number of
performance rights
We divide the DEP target value by the VWAP of Worley shares over 10 trading days following the release of our prior-year financial
results. For FY2023 this was $14.51.
Performance period
Two years: for the FY2023 grant, the performance period runs from 1 July 2022 to 30 June 2024.
Summary of
performance
condition
The FY2023 performance hurdle measures progress in our strategy to deliver growth and help our customers achieve their
sustainability goals.
Weight
100%
KPI
Growth in gross margin delivered from customer projects in defined
sustainability-related work.
Target
$1,400m
Performance against the KPI, including the rationale for the vesting percentage, will be disclosed in the Remuneration report
following the end of the performance period.
Performance
assessment and
vesting
The grant vests in two equal tranches at two and three years. The Board determines the outcome of the strategic execution
condition at the end of the performance period, considering the results against the KPI(s). The Board determines a nil, partial or
full performance outcome. There is no re-testing. Any rights that don’t vest lapse immediately. Vested rights are automatically
exercised immediately following the vesting date. Vesting of equity rights is subject to ongoing service with Worley and satisfactory
individual performance up to each vesting date. It is also subject to individual malus and clawback provisions. Refer to section 5.4.
Board discretion
The Board considers the quality of the result to make sure the outcome reflects performance in line with our values and avoids
unintended outcomes. Where relevant, the Board may also consider:
• guidance and recommendations from external stakeholders, including proxy advisors, ASIC and legislative bodies in the
markets we operate in
• feedback from our people, customers, suppliers, shareholders and communities we operate in
• consultation with independent external advisors as necessary.
Leaver provisions
If an executive resigns before the vesting date, they will normally forfeit their performance rights. In certain circumstances, the
Board may allow good leavers to retain a pro-rata amount of their unvested performance rights. See section 5.6 for more detail.
6.8 Long-Term Incentive (LTI) – FY2023 Grant
Feature
Description
Purpose and link to
strategy
The LTI encourages executives to commit to Worley and focus on creating long-term value. The performance metrics reward
executives for creating sustained shareholder wealth above that of peer companies and absolute long-term earnings performance
above a minimum threshold.
Eligibility
All executive KMP are eligible to participate. They generally need to have been employed at the beginning of the performance period
(1 July in the year of grant).
Opportunity
LTI targets are 115% of fixed salary for the CEO and 85% for other executive KMP.
Delivery
Performance rights: each performance right that vests entitles executives to one Worley share. Rights are granted at no cost to
executives and no exercise price is payable by executives to acquire shares at the time of vest.
Number of
performance rights
We divide the LTI target value by the VWAP of Worley shares over the 10 trading days following the release of our prior year financial
results. For the FY2023 grant, this was $14.51.
Performance period
Four years: for the FY2023 grant, the performance period runs from 1 July 2022 to 30 June 2026.
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Feature
Summary of
performance
conditions
Description
We assess the LTI against two equally weighted, independent performance targets:
Relative Total Shareholder Return (TSR) performance hurdle – 50% weighting
The TSR measure represents change in the value of our share price over a period, including reinvested dividends. This is expressed as
a percentage of the opening value of the shares. We chose relative TSR because we believe this provides the most direct measure of
shareholder return and reflects an investor’s choice to invest in us or our direct competitors. For the FY2023 grant, performance is
measured by ranking Worley’s TSR against two peer groups:
1. companies that compete against Worley for customers, people and projects today (80% weighting): Aker Solutions, Fluor Corp,
KBR, Petrofac, SNC Lavalin, Technip Energies and Wood
2. companies aligned to our strategy of delivering value to customers in sustainability pathways by leveraging knowledge,
technology and digital solutions (20% weighting): AECOM, Arcadis, Jacobs, Parsons, Stantec, Sweco, Tetra Tech and WSP Global.
The vesting schedule for rights subject to the relative TSR hurdle is as follows:
Relative TSR Percentile Ranking
Percentage of Rights that may be Exercised if the Relative TSR Hurdle is met
Less than 50th percentile
At 50th percentile
0%
50%
Between 50th percentile and 75th percentile
Pro-rated vesting between 50% and 100%
At 75th percentile or greater
100% (i.e. maximum available under the plan)
Earnings Per Share (EPS) growth performance hurdle – 50% weighting
To measure EPS, we divide the Group underlying NPATA by the weighted average number of Worley’s ordinary shares on issue during
the financial year. To measure growth in EPS, we compare the EPS in the financial year immediately before the grant with the EPS
in the measurement year. The Board chose EPS growth because it provides a clear line of sight between executive performance and
Worley’s financial performance. It’s a well-recognized and understood measure within and outside the organization.
The vesting schedule for rights subject to the EPS growth hurdle is as follows:
EPS annual compound growth
Percentage of rights that may be exercised if the EPS hurdle is met
Less than 4% p.a.
4% p.a.
0%
50%
Between 4% p.a. and 8% p.a.
Pro-rated vesting between 50% and 100%
8% p.a. or greater
100% (i.e. maximum available under the plan)
Performance
assessment and
vesting
An independent external consultant is used to calculate the TSR outcomes for all peer companies, including any adjustments
required in certain scenarios (e.g. capital raising activities, mergers, divestments or bankruptcies) and the final ranking list for both
comparator groups.
EPS performance is calculated internally in accordance with Australian Accounting Standards. The Board may adjust the Group
underlying NPATA used for remuneration purposes, where appropriate, to better reflect operating performance.
The Board reviews all calculations and recommendations and determines final performance and vesting outcomes for both
tranches. There is no re-testing. Any rights that don’t vest lapse immediately. Vested rights are automatically exercised immediately
following the vesting date. Vesting of equity rights is subject to ongoing service with Worley and satisfactory individual performance.
It is also subject to individual malus and clawback provisions. See section 5.4 for further detail.
Board discretion
The Board considers the quality of the result to make sure the outcome reflects performance in line with our values and avoids
unintended outcomes. The Board may also consider:
• guidance and recommendations from external stakeholders, including proxy advisors, ASIC and legislative bodies in the markets
we operate in
• feedback from our people, customers, suppliers, shareholders and communities we operate in
• consultation with independent external advisors as necessary.
Leaver provisions
If an executive resigns before the vesting date, they will normally forfeit their performance rights. In certain circumstances, the
Board may allow good leavers to retain a pro-rata amount of their unvested performance rights. See section 5.6 for more detail.
125
Worley Annual Report 2023 7. Executive KMP employment agreements
We’ve outlined the key aspects of executive employment agreements (EAs) below:
Executive Director
Chris Ashton
Other Executive KMP
Tiernan O’Rourke
Mark Brantley
Mark Trueman
Duration
Unlimited
Unlimited
Unlimited
Unlimited
Non-compete Clauses
Notice periods
6 months
6 months
6 months
6 months
6 months
6 months
6 months
6 months
Executive KMP EAs include the components of remuneration we pay. The EA includes an annual remuneration review but doesn’t prescribe
how we’ll modify remuneration from year to year. If we terminate an Executive KMP’s EA, they’ll receive their statutory leave entitlements.
If an executive resigns, we only pay their variable pay if they’re employed on the date of payment or vesting (which is after the end of the
performance period). In certain circumstances, the Board may allow a good leaver to retain eligibility for variable pay. We’ve outlined this
further in section 5.6.
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Financial statements
8. Non-Executive Director (NED) remuneration
We set NED fees at a market competitive level to attract and retain the caliber of directors required to address our strategic and
operational challenges. The Board reviews NED fees annually, comparing them to fees paid by other ASX listed companies of similar size,
industry and global scope. It also considers the number of NEDs we need for the business. We don’t pay retirement benefits to NEDs
unless required to by legislation. NEDs don’t receive any performance-related incentives or participate in Worley equity programs. During
FY2023 we made no changes to the NED fee policy. Fees have remained the same since 1 July 2019.
We cap the amount we can pay to NEDs in any year. This includes Board and committee fees, and travel allowances. Our shareholders
approve this cap. The current maximum aggregate fee pool is $3.25 million per annum, set at the 2012 AGM. We paid 92% ($2.98 million) of
the aggregate fee pool during FY2023, compared to 90% ($2.91 million) in FY2022. This includes FY2023 travel allowances of $95,000.
Feature
Board fees
Description
Board fees (inclusive of superannuation where relevant) are:
Role
Chair
Lead Independent Director
Other NED base fee
Fee P.A.
$520,000
$269,000
$194,000
The Chair and Lead Independent Director roles have fixed fees. They don’t receive additional fees for membership of any committees.
Committee fees
Committee fees recognize the additional responsibilities, time and commitment required. The annual committee fees are:
Role
Chair of Audit and Risk Committee
Member of Audit and Risk Committee
Chair of People and Remuneration Committee
Member of People and Remuneration Committee
Chair of Health, Safety and Sustainability Committee
Member of Health, Safety and Sustainability Committee
Chair/member of Nominations Committee
Fee P.A.
$47,000
$26,000
$40,000
$21,000
$40,400
$21,000
nil
Other benefits
NEDs are eligible for $5,000 per trip for additional time incurred on overseas business travel when attending Board meetings and site
visits. NEDs are also entitled to reimbursement for business expenses they incur while working. From time to time, the Board may
determine special fees for additional duties directors undertake.
We’ve set out NEDs’ remuneration outcomes in section 9.5, and beneficial interests in Worley shares in section 9.6.
127
Worley Annual Report 2023 9. Remuneration tables (statutory disclosures)
We’ve prepared this section according to the relevant statutory requirements and accounting standards. All amounts are in Australian
dollars. We discuss the service and performance criteria for the equity grants vesting in FY2023 in sections 3.3 and 3.4, and equity grants
made in FY2023 in sections 6.7 and 6.8.
9.1 Statutory remuneration outcomes
The values in this table are reported in accordance with the relevant statutory requirements and accounting standards. Equity amounts
are the amortized accounting expense of equity held by executive KMP for FY2023 and are not indicative of the actual value realized by
Executive KMP. The face value of equity due to vest in 2023 is detailed in Section 3.5.
Cash
salary
$000
Cash
incentive/
cash STI 1
$000
Other
benefits 2
$000
Total
short-term
cash and
benefits
$000
Super–
annuation
benefits
$000
Annual
and long
service
leave
$000
Termi–
nation
benefits
$000
Equity
incentives3
$000
LTI equity
settled4
$000
Total
$000
Variable
pay % of
total
Name
Year
Executive Director
Chris Ashton
FY2023
1,996
2,528
FY2022
1,692
1,626
Other Executive KMP
Tiernan O’Rourke5
FY2023
1,029
1,022
Mark Brantley6
Mark Trueman7
FY2022
FY2023
FY2022
FY2023
FY2022
Former Executive KMP
Vinayak Pai8
Karen Sobel9
FY2023
FY2022
FY2023
FY2022
576
802
515
802
–
–
326
–
504
777
350
777
–
–
–
–
753
405
55
38
4,579
3,356
3
1
513
241
556
–
–
2,054
1,081
2,092
1,106
2,135
–
–
127
453
–
20
–
1,178
Total remuneration
FY2023
4,629
5,104
1,127
10,860
FY2022
3,862
2,885
427
7,174
1. This relates to the STI Plan. The FY2023 STI will be paid to executives in October 2023.
22
15
26
12
24
9
–
–
–
29
–
15
72
80
32
33
41
44
9
26
9
–
–
–
–
–
91
103
–
–
–
–
–
–
–
–
–
1,018
735
548
504
6,199
66.0%
4,643
61.7%
336
82
325
157
244
–
–
244
2,701
56
1,275
187
2,637
88
1,386
137
2,525
–
–
–
–
59.3%
50.3%
48.9%
42.9%
45.9%
–
–
151
(159)
(306)
168
(276.8%)
–
–
–
–
–
–
337
155
1,685
1,923
1,116
14,062
151
1,152
497
9,157
–
53.2%
57.9%
49.5%
2.
3.
4.
5.
6.
Includes expatriate benefits (such as housing, home leave and tax advisory services) and local benefits (such as health insurance, car parking, company cars or car
allowances, fringe benefits tax and life insurance). Expatriate benefits will typically be reported grossed-up for tax purposes in one or more countries (home/host) and may
be subject to tax reconciliations which typically occur up to a year after the reporting period, once tax returns are filed in all relevant jurisdictions.
Equity Incentives include grants made under the DEP and any other special performance grants made from time to time.
The FY2022 LTI equity settled expense was calculated using a methodology inconsistent with the methodology used to calculate the expense recognised in the statement
of financial performance. We’ve restated the comparatives to align to the treatment under AASB 2, resulting in a decrease of $165,000 for Chris Ashton and $127,000 for
Karen Sobel. Additionally, in FY2022 it was agreed that Karen Sobel would be a good leaver on her retirement in FY2023, retaining a pro-rated amount of unvested equity
on her departure. This was not reflected in the FY2022 reporting. We’ve restated her FY2022 equity incentive and LTI equity settled amounts to reflect the acceleration of
expense relating to her retained equity, resulting in an increase of $67,000 and $33,000 respectively.
Tiernan O’Rourke started as CFO on 29 November 2021 and amounts shown for FY2022 reflect this. He was granted FY2022 equity on a pro-rata basis. We’ve restated his
FY2022 amounts to reflect the vesting period of his FY22 equity awards from his start date, resulting in a decrease in expense of $35,000 for equity incentives and $30,000
for LTI equity settled.
Mark Brantley started as Group President, EMEA and APAC and became a KMP effective 1 November 2021. His FY2022 STI, equity incentive and LTI equity settled amounts
were not apportioned for the period he was a KMP. We’ve restated his FY2022 comparatives to reflect the appropriate apportioned expense, resulting in a decrease
of $133,000 for STI, $96,000 for equity incentives and $45,000 for LTI equity settled. Mr. Brantley’s benefits reported in FY2022 have also been restated to include an
expatriate tax amount of $140,000 that was processed after the reporting period.
7. Mark Trueman started as Group President, Americas and became a KMP on 1 July 2022.
8.
Vinayak Pai ceased to be a KMP on 31 October 2021 and terminated employment with Worley on 31 December 2021. He forfeited all unvested equity rights upon
termination and we reversed the full cumulative expense accrued to that point.
9.
Karen Sobel ceased to be a KMP on 30 June 2022 and retired on 31 March 2023.
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9.2 Executives’ interests in shares and performance rights
We’ve detailed beneficial interests in shares and performance rights held during FY2023 below.
Name
Executive Director
Chris Ashton
Other Executive KMP
Tiernan O’Rourke
Mark Brantley
Mark Trueman
Totals
Type
Rights
Shares
Rights
Shares
Rights
Shares
Rights
Shares
Rights
Shares
Balance at
1 July 2022
Rights
granted
Rights
lapsed1
Rights
vested
Vested rights
withheld
for tax2
Vested rights
exercised/
Shares
delivered
Shares
disposed3
Balance at
30 June
20234
586,714
239,634
(41,754)
(53,274)
(20,964)
(32,310)
144,296
–
81,760
101,309
–
–
143,206
72,806
32,607
–
–
–
–
–
–
–
–
–
–
32,310
–
–
–
–
(16,997)
(5,159)
(11,838)
–
–
11,838
87,243
72,806
(6,952)
(11,048)
(320)
(10,728)
121,070
–
–
–
–
10,728
898,923
486,555
(48,706)
(81,319)
(26,443)
(54,876)
297,973
–
–
–
–
54,876
–
–
–
–
–
–
–
–
–
–
731,320
176,606
183,069
–
199,015
44,445
142,049
131,798
1,255,453
352,849
1. Rights lapsed due to executives not meeting performance hurdles and/or ceasing employment.
2.
Where an executive has a tax withholding obligation payable at immediately at vest/exercise, we cancel a number of rights equal to the value of any withholding tax paid by
Worley on their behalf. The executive is issued a number of shares net of this amount.
3. May include shares sold, transferred or otherwise disposed of.
4. No executives have nominally held shares.
9.3 Executive Minimum Shareholding Requirement (MSR)
Executives must retain all equity received through incentive plans until they’ve met their MSR target. The MSR value is calculated as:
• the number of shares held at 30 June 2023, multiplied by the VWAP over the five trading days to 30 June 2023 - $15.69, plus
• 50% of unvested equity rights held at 30 June 2023, multiplied by the higher of the 30 June VWAP or the allocation price.
Name
Executive Director
Chris Ashton
Other Executive KMP
Tiernan O’Rourke
Mark Brantley
Mark Trueman
Weighted
number
of shares
Current
MSR value
$000
Annual
fixed salary
$000
Target
multiple of
fixed salary
% of MSR
target
achieved
542,268
8,508
2,078
91,535
143,956
202,825
1,436
2,259
3,182
1,050
799
799
4x
2x
2x
2x
102.3%
68.4%
141.4%
199.2%
129
Worley Annual Report 2023 9.4 Details of vested, exercised, lapsed and outstanding rights
We’ve summarized the details of equity awards granted, vested, lapsed and outstanding in FY2023 below. Information about awards
granted in prior years is set out in the Remuneration Report of the relevant reporting period.
Grant
date
Vest date
Rights
granted1
Fair value
per right
(AUD)2
Rights
vested
Rights
exercised
Rights
withheld
for tax3
Rights
lapsed4
% Of
rights
vested
% Of
rights
lapsed
Max value
of rights
yet to vest
$0005
Name
Executive Director
Chris Ashton4
FY20 DEP Tranche 3
31-Oct-19
30-Sep-22
9,278
$12.10
(9,278)
(5,627)
(3,651)
FY21 DEP Tranche 1
31-Oct-20
30-Sep-22
43,996
$8.58
(43,996)
(26,683)
(17,313)
FY21 DEP Tranche 2
31-Oct-20
30-Sep-23
43,996
FY22 DEP Tranche 1
31-Oct-21
30-Sep-23
56,398
FY22 DEP Tranche 2
31-Oct-21
30-Sep-24
56,398
FY23 DEP Tranche 1
31-Oct-22
30-Sep-24
45,336
FY23 DEP Tranche 2
31-Oct-22
30-Sep-25
45,336
FY20 LTI (TSR Tranche)7 31-Oct-19
30-Sep-23
FY20 LTI (EPS Tranche)7 31-Oct-19
30-Sep-23
FY21 LTI (TSR Tranche)
31-Oct-20
30-Sep-24
FY21 LTI (EPS Tranche)
31-Oct-20
30-Sep-24
20,877
20,877
74,793
74,793
FY22 LTI (TSR Tranche)
31-Oct-21
30-Sep-25
92,654
FY22 LTI (EPS Tranche)
31-Oct-21
30-Sep-25
92,654
FY23 LTI (EPS Tranche)
31-Oct-22
30-Sep-26
FY23 LTI (TSR Tranche)
31-Oct-22
30-Sep-26
74,481
74,481
Other Executive KMP
Tiernan O’Rourke8
FY22 DEP Tranche 1
31-Oct-21
30-Sep-23
16,060
FY22 DEP Tranche 2
31-Oct-21
30-Sep-24
16,060
FY23 DEP Tranche 1
31-Oct-22
30-Sep-24
19,900
FY23 DEP Tranche 2
31-Oct-22
30-Sep-25
19,900
FY22 LTI (TSR Tranche)
31-Oct-21
30-Sep-25
FY22 LTI (EPS Tranche)
31-Oct-21
30-Sep-25
FY23 LTI (TSR Tranche)
31-Oct-22
30-Sep-26
FY23 LTI (EPS Tranche)
31-Oct-22
30-Sep-26
Mark Brantley9
FY20 DEP Tranche 3
31-Oct-19
30-Sep-22
FY21 DEP Tranche 1
31-Oct-20
30-Sep-22
FY21 DEP Tranche 2
31-Oct-20
30-Sep-23
FY22 DEP Tranche 1
31-Oct-21
30-Sep-23
FY22 DEP Tranche 2
31-Oct-21
30-Sep-24
24,820
24,820
30,755
30,754
7,292
9,705
9,705
19,072
19,072
FY23 DEP Tranche 1
31-Oct-22
30-Sep-24
14,301
FY23 DEP Tranche 2
31-Oct-22
30-Sep-25
14,301
FY21 LTI (TSR Tranche)
31-Oct-20
30-Sep-24
FY21 LTI (EPS Tranche)
31-Oct-20
30-Sep-24
FY22 LTI (TSR Tranche)
31-Oct-21
30-Sep-25
FY22 LTI (EPS Tranche)
31-Oct-21
30-Sep-25
FY23 LTI (EPS Tranche)
31-Oct-22
30-Sep-26
FY23 LTI (TSR Tranche)
31-Oct-22
30-Sep-26
9,705
9,705
29,475
29,475
22,102
22,102
$8.08
$9.89
$9.37
$13.34
$12.88
$7.78
$12.10
$5.60
$7.67
$5.86
$8.92
$12.44
$8.07
$9.89
$9.37
$13.34
$12.88
$5.86
$8.92
$8.07
$12.44
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
$12.10
(7,292)
(5,078)
(2,214)
$8.58
$8.08
$9.89
$9.37
$13.34
$12.88
$5.60
$7.67
$5.86
$8.92
$12.44
$8.07
(9,705)
(6,760)
(2,945)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(20,877)
(20,877)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100%
100%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100%
100%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100%
100%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
28
62
204
337
405
–
–
124
–
288
438
709
460
22
66
148
178
85
130
190
293
–
–
7
21
69
106
128
16
–
92
139
210
136
130
Remuneration reportFinancial statements Overview
Context & strategy
Operating & financial review
Financial statements
Grant
date
Vest date
Rights
granted1
Fair value
per right
(AUD)2
Rights
vested
Rights
exercised
Rights
withheld
for tax3
Rights
lapsed4
% Of
rights
vested
% Of
rights
lapsed
Max value
of rights
yet to vest
$0005
Name
Mark Trueman10
FY20 DEP Tranche 3
31-Oct-19
30-Sep-22
FY21 DEP Tranche 1
31-Oct-20
30-Sep-22
FY21 DEP Tranche 2
31-Oct-20
30-Sep-23
FY22 DEP Tranche 1
31-Oct-21
30-Sep-23
FY22 DEP Tranche 2
31-Oct-21
30-Sep-24
2,896
8,152
8,152
9,953
9,952
FY23 DEP Tranche 1
31-Oct-22
30-Sep-24
14,301
FY23 DEP Tranche 2
31-Oct-22
30-Sep-25
14,301
FY20 LTI (TSR Tranche)7 31-Oct-19
30-Sep-23
FY20 LTI (EPS Tranche)7 31-Oct-19
30-Sep-23
FY21 LTI (TSR Tranche)
31-Oct-20
30-Sep-24
FY21 LTI (EPS Tranche)
31-Oct-20
30-Sep-24
FY22 LTI (TSR Tranche)
31-Oct-21
30-Sep-25
FY22 LTI (EPS Tranche)
31-Oct-21
30-Sep-25
FY23 LTI (EPS Tranche)
31-Oct-22
30-Sep-26
FY23 LTI (TSR Tranche) 31-Oct-22
30-Sep-26
3,476
3,476
8,152
8,152
12,441
12,441
22,102
22,102
1. May include rights granted before the executive became a KMP.
$12.10
(2,896)
$8.58
$8.08
$9.89
$9.37
$13.34
$12.88
$7.78
$12.10
$5.60
$7.67
$5.86
$8.92
$12.44
$8.07
(8,152)
–
–
–
–
–
–
–
–
–
–
–
–
–
(2,835)
(7,893)
(61)
(259)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(3,476)
(3,476)
–
–
–
–
–
–
100%
100%
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
100%
100%
–
–
–
–
–
–
–
–
5
11
36
106
128
–
–
13
–
39
59
210
136
2. Fair value per right at grant is determined by external consultants using an option-pricing model in accordance with the AASB 2 Share-based Payments standard. A Monte
Carlo simulation is applied to LTI tranches subject to a TSR performance hurdle. The Black-Scholes model is utilized for all other tranches. These take into account the:
• share price at grant date
• term of the right
• vesting and performance criteria
• exercise price
• expected price volatility of the underlying share
• risk-free interest rate for the term of the right
• expected dividend yield
• non-tradeable nature of the right
• impact of dilution.
The fair value is expensed evenly over the service period ending at the vesting date.
3. Where an executive has a tax withholding obligation payable at immediately at vest/exercise, we cancel a number of rights equal to the value of any withholding tax paid by
Worley on their behalf. The executive is issued a number of shares net of this amount.
4. These are rights lapsed due to executives not meeting performance hurdles and/or ceasing employment.
5. This is the total fair value at grant (number of rights granted multiplied by fair market value) that is yet to be expensed following 30 June 2023. The minimum value is nil if
performance hurdles or other vesting conditions aren’t met.
6. Chris Ashton’s FY2023 LTI and DEP grants were approved at the 2022 annual general meeting, under ASX Listing Rule 10.14.
7. Neither tranche of the FY2020 LTI grant met the minimum performance requirements for vesting. These rights will lapse in full on the vesting date.
8. Tiernan O’Rourke started with Worley as a KMP on 29 November 2021. He was granted rights under the FY2022 DEP and LTI plans on a pro-rata basis.
9. Mark Brantley started as a KMP on 1 November 2021. His rights include equity granted to him prior to becoming a KMP.
10. Mark Trueman started as a KMP on 1 July 2022. His rights include equity granted to him prior to becoming a KMP.
131
Worley Annual Report 2023
9.5 Non-Executive Director remuneration outcomes
We’ve set out NEDs’ remuneration outcomes for FY2023 below.
Name
John Grill
Andrew Liveris
Juan Suárez Coppel
Thomas Gorman
Christopher Haynes
Roger Higgins
Martin Parkinson
Emma Stein
Anne Templeman-Jones
Sharon Warburton
Wang Xiao Bin
Totals
Year
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
FY2023
FY2022
Short term employee benefits
Post-employment benefits
Fees
$000
Travel
allowances
$000
Superannuation1
$000
497
500
246
247
221
221
237
243
237
237
235
235
200
201
232
211
212
242
227
221
221
221
2,765
2,779
10
5
5
5
5
5
5
–
10
5
10
5
10
5
10
5
10
5
10
5
10
–
95
45
25
22
24
23
–
–
–
–
–
–
–
–
21
20
24
21
22
–
1
–
–
–
117
86
Total
$000
532
527
275
275
226
226
242
243
247
242
245
240
231
226
266
237
244
247
238
226
231
221
2,977
2,910
1. Superannuation contributions are made on behalf of NEDs in accordance with the Company’s statutory superannuation obligations.
132
Remuneration reportFinancial statements Overview
Context & strategy
Operating & financial review
Financial statements
9.6 Non-Executive Director interests in shares
NED beneficial interests in Worley shares on 30 June 2023 are shown below. This includes shares held solely in the Directors’ name, jointly
with another person, in a self-managed superannuation plan, or where Directors are able to establish they have a beneficial entitlement.
NEDs are required to hold the equivalent of 100% of the annual NED base fee in Worley shares. They have three years from their date of
appointment to meet the MSR. The MSR value is the number of shares held at 30 June 2023, multiplied by the higher of:
• the VWAP over the five trading days to 30 June 2023 - $15.69, or
• the price at which the shares were acquired.
Name
John Grill
Andrew Liveris
Juan Suárez Coppel
Thomas Gorman
Christopher Haynes
Roger Higgins
Martin Parkinson
Emma Stein
Anne Templeman-Jones
Sharon Warburton
Wang Xiao Bin
Type
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Shares
Balance at
1 July 2022
34,336,128
17,870
18,032
29,000
18,922
34,000
16,000
20,840
17,382
22,500
11,000
Other
transactions
–
–
165
–
–
–
1,000
–
–
–
–
Balance at
30 June 2023
34,336,128
17,870
18,197
29,000
18,922
34,000
17,000
20,840
17,382
22,500
11,000
MSR
achieved
>100%
>100%
>100%
>100%
>100%
>100%
>100%
>100%
>100%
>100%
>100%
This Directors’ Report (including the Remuneration Report) is made in accordance with a resolution of the directors.
John Grill AO
Chair
133
Worley Annual Report 2023 Consolidated statement of financial performance
and other comprehensive income
For the financial year ended 30 June 2023
REVENUE AND OTHER INCOME
Professional services revenue
Construction and fabrication revenue
Procurement revenue
Other income
Interest income
Total revenue and other income
EXPENSES
Professional services costs
Construction and fabrication costs
Procurement cost
Global support costs
Transition, transformation and restructuring costs
Strategic costs
Loss on sale of disposal group and related expenses
Other costs
Finance costs
Total expenses
Share of net profit of associates accounted for using the equity method
Profit before income tax expense
Income tax expense
Profit after income tax expense
Profit after income tax expense attributable to:
Members of Worley Limited
Non-controlling interests
Other comprehensive income
Items that may be reclassified in future periods to the Consolidated Statement of Financial Performance,
net of tax
Net movement in foreign currency translation reserve
Net movement in hedge reserve
Items that will not be reclassified in future periods to the Consolidated Statement of Financial
Performance, net of tax
Net movement in defined benefit reserve
Total comprehensive income net of tax
Total comprehensive income net of tax, attributable to:
Members of Worley Limited
Non-controlling interests
Basic earnings per share (cents)
Diluted earnings per share (cents)
CONSOLIDATED
NOTES
2023
$’M
6,397
3,004
1,923
2
7
4
11,333
(5,815)
(2,905)
(1,882)
(164)
(50)
(37)
(240)
-
(117)
(11,210)
23
146
(100)
46
37
9
141
2
(11)
178
172
6
7.0
7.0
3(E)
5
5
21(C)
5
22(B)
6(A)
17
17
2022
$’M
5,444
2,806
1,445
6
4
9,705
(4,954)
(2,693)
(1,429)
(154)
(65)
(30)
-
(30)
(64)
(9,419)
8
294
(117)
177
172
5
209
(5)
14
395
390
5
32.8
32.6
The above Consolidated Statement of Financial Performance and Other Comprehensive Income should be read in conjunction with the accompanying notes.
134
134
Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
Consolidated statement of financial performance
and other comprehensive income
For the financial year ended 30 June 2023
Consolidated statement of financial position
As at 30 June 2023
REVENUE AND OTHER INCOME
Professional services revenue
Construction and fabrication revenue
Procurement revenue
Other income
Interest income
Total revenue and other income
EXPENSES
Professional services costs
Construction and fabrication costs
Procurement cost
Global support costs
Transition, transformation and restructuring costs
Loss on sale of disposal group and related expenses
Strategic costs
Other costs
Finance costs
Total expenses
Profit before income tax expense
Income tax expense
Profit after income tax expense
Profit after income tax expense attributable to:
Members of Worley Limited
Non-controlling interests
Other comprehensive income
net of tax
Net movement in foreign currency translation reserve
Net movement in hedge reserve
Performance, net of tax
Net movement in defined benefit reserve
Total comprehensive income net of tax
Total comprehensive income net of tax, attributable to:
Members of Worley Limited
Non-controlling interests
Basic earnings per share (cents)
Diluted earnings per share (cents)
Share of net profit of associates accounted for using the equity method
(11,210)
(9,419)
Items that may be reclassified in future periods to the Consolidated Statement of Financial Performance,
Items that will not be reclassified in future periods to the Consolidated Statement of Financial
The above Consolidated Statement of Financial Performance and Other Comprehensive Income should be read in conjunction with the accompanying notes.
CONSOLIDATED
NOTES
4
11,333
9,705
2023
$’M
6,397
3,004
1,923
2
7
(5,815)
(2,905)
(1,882)
(164)
(50)
(37)
(240)
-
(117)
23
146
(100)
46
37
9
141
2
(11)
178
172
6
7.0
7.0
2022
$’M
5,444
2,806
1,445
6
4
(4,954)
(2,693)
(1,429)
(154)
(65)
(30)
-
(30)
(64)
8
294
(117)
177
172
5
209
(5)
14
395
390
5
32.8
32.6
3(E)
5
5
5
21(C)
22(B)
6(A)
17
17
ASSETS
Current assets
Cash and cash equivalents
Trade receivables and contract assets
Procurement assets
Other current assets
Income tax receivable
Prepayments
Derivatives
Total current assets
Non-current assets
Trade receivables and contract assets
Intangible assets
Property, plant and equipment and right of use (ROU) assets
Deferred tax assets
Equity accounted associates
Other non-current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Procurement payables
Provisions
Interest bearing loans and borrowings and lease liabilities
Income tax payable
Derivatives
Total current liabilities
Non-current liabilities
Trade and other payables
Interest bearing loans and borrowings and lease liabilities
Defined benefit plans
Deferred tax liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained profits
Members of Worley Limited
Non-controlling interests
TOTAL EQUITY
NOTES
7
8
27
8
19(B)
8
10
28
29(A)
22(B)
9
27
11
13
19(C)
9
13
30
29(B)
11
15
16
CONSOLIDATED
2023
$’M
425
1,973
177
348
62
157
7
3,149
135
6,068
633
253
196
84
7,369
2022
$’M
507
1,952
164
215
107
99
3
3,047
128
6,155
617
192
189
68
7,349
10,518
10,396
1,429
211
637
90
45
13
2,425
50
2,158
56
82
146
2,492
4,917
5,601
5,351
(159)
415
5,607
(6)
5,601
1,350
199
610
564
38
32
2,793
53
1,605
51
90
121
1,920
4,713
5,683
5,341
(302)
640
5,679
4
5,683
134
Worley Annual Report 2023
Worley Annual Report 2023
135
135
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Worley Annual Report 2023
Consolidated statement of changes in equity
For the financial year ended 30 June 2023
For the financial year ended 30 June 2022
(157)
(1)
As at 1 July 2022
Profit after income tax expense
Foreign exchange movement on translation of
foreign controlled entities and associates
Fair value loss on mark to market of forward
exchange contracts, net of tax
Remeasurement gain on defined benefit plans, net
of tax
Total comprehensive income/(loss), net of tax
Transactions with owners
Share based payments expense
Transfer to issued capital on issuance of shares to
satisfy performance rights
Decrease in ownership
Increase in ownership of controlled entities
Dividends paid
As at 30 June 2023
As at 1 July 2021
Profit after income tax expense
Foreign exchange movement on translation of
foreign controlled entities and associates
Fair value loss on mark to market of cross currency
hedge, net of tax
Remeasurement gain on defined benefit plans, net
of tax
Total comprehensive income/(loss), net of tax
Transactions with owners
Share based payments expense
Transfer to issued capital on issuance of shares to
satisfy performance rights
Increase in ownership of controlled entities
Dividends paid
As at 30 June 2022
CONSOLIDATED
ISSUED
CAPITAL
$’M
5,341
RETAINED
PROFITS
$’M
640
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$’M
(301)
HEDGE
RESERVE
$’M
(3)
PERFORMANCE
RIGHTS
RESERVE
$’M
60
DEFINED
BENEFIT
RESERVE
$’M
14
ACQUISITION
RESERVE
$’M
(72)
MEMBERS OF
WORLEY
LIMITED
$’M
5,679
NON-
CONTROLLING
INTERESTS
$’M
4
TOTAL
$’M
5,683
-
-
-
-
-
-
10
-
-
5,351
-
-
-
-
-
-
20
-
-
5,341
37
-
-
-
-
144
-
-
37
144
-
-
-
(262)
415
-
-
-
(262)
640
172
-
-
-
-
209
-
-
172
209
-
-
-
-
-
-
-
-
-
-
2
-
2
-
-
-
-
-
-
-
-
-
-
-
-
-
37
144
2
(11)
172
25
(7)
-
(262)
9
46
(3)
141
-
-
6
2
(11)
178
-
25
-
(7)
-
(9)
(7)
(7)
-
(271)
(72)
5,607
(6)
5,601
-
-
-
-
-
-
-
-
(11)
(11)
25
(17)
-
-
68
-
-
-
-
3
CONSOLIDATED
-
-
-
-
-
-
-
-
(5)
-
(5)
-
-
-
-
-
-
-
-
-
20
(27)
-
-
-
-
-
14
14
-
-
-
-
TOTAL
$’M
5,584
177
209
(5)
14
395
172
209
(5)
14
390
5
-
-
-
5
20
-
20
-
(8)
-
(7)
(8)
(262)
-
(36.0)
(3)
(7)
(44)
(265)
ISSUED
CAPITAL
$’M
5,321
RETAINED
PROFITS
$’M
730
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$’M
(510)
HEDGE
RESERVE
$’M
2
PERFORMANCE
RIGHTS
RESERVE
$’M
67
DEFINED
BENEFIT
RESERVE
$’M
-
ACQUISITION
RESERVE
$’M
(64)
MEMBERS OF
WORLEY
LIMITED
$’M
5,546
NON-
CONTROLLING
INTERESTS
$’M
38
(301)
(3)
60
14
(72)
5,679
4
5,683
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
136
136
Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
Consolidated statement of changes in equity
For the financial year ended 30 June 2023
Consolidated statement of cash flows
For the financial year ended 30 June 2023
As at 1 July 2022
Profit after income tax expense
Foreign exchange movement on translation of
foreign controlled entities and associates
Fair value loss on mark to market of forward
exchange contracts, net of tax
Remeasurement gain on defined benefit plans, net
of tax
Total comprehensive income/(loss), net of tax
37
144
Transactions with owners
Share based payments expense
Transfer to issued capital on issuance of shares to
satisfy performance rights
Decrease in ownership
Increase in ownership of controlled entities
Dividends paid
As at 30 June 2023
10
(262)
415
For the financial year ended 30 June 2022
As at 1 July 2021
Profit after income tax expense
Foreign exchange movement on translation of
foreign controlled entities and associates
Fair value loss on mark to market of cross currency
Remeasurement gain on defined benefit plans, net
hedge, net of tax
of tax
5,351
(157)
(1)
(72)
5,607
(6)
5,601
CONSOLIDATED
FOREIGN
CURRENCY
RETAINED
TRANSLATION
HEDGE
RIGHTS
BENEFIT
ACQUISITION
WORLEY
CONTROLLING
PROFITS
RESERVE
RESERVE
RESERVE
RESERVE
RESERVE
LIMITED
INTERESTS
PERFORMANCE
DEFINED
MEMBERS OF
NON-
$’M
(301)
$’M
(3)
$’M
60
$’M
14
$’M
(72)
$’M
5,679
ISSUED
CAPITAL
$’M
5,341
$’M
640
37
144
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
-
2
-
-
-
-
$’M
2
-
-
(5)
-
(5)
-
-
-
-
25
(17)
-
-
68
-
-
-
-
-
-
-
-
-
-
20
(27)
-
-
(11)
(11)
-
-
-
-
-
-
-
3
14
14
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37
144
2
(11)
172
25
(7)
-
(262)
$’M
5,546
172
209
(5)
14
390
20
(7)
(8)
RETAINED
TRANSLATION
HEDGE
RIGHTS
BENEFIT
ACQUISITION
WORLEY
CONTROLLING
PROFITS
RESERVE
RESERVE
RESERVE
RESERVE
RESERVE
LIMITED
INTERESTS
PERFORMANCE
DEFINED
MEMBERS OF
NON-
CONSOLIDATED
$’M
$’M
67
$’M
(64)
ISSUED
CAPITAL
$’M
5,321
$’M
730
172
FOREIGN
CURRENCY
$’M
(510)
209
TOTAL
$’M
5,683
46
$’M
4
9
(3)
141
-
-
6
-
(7)
-
-
(9)
2
(11)
178
25
(7)
(7)
-
(271)
$’M
38
TOTAL
$’M
5,584
177
5
-
-
-
5
-
-
209
(5)
14
395
20
(7)
(44)
Total comprehensive income/(loss), net of tax
172
209
Transactions with owners
Share based payments expense
Transfer to issued capital on issuance of shares to
satisfy performance rights
20
Increase in ownership of controlled entities
Dividends paid
As at 30 June 2022
(262)
640
5,341
(301)
(3)
60
14
(72)
5,679
4
5,683
(8)
-
-
(36.0)
(262)
(3)
(265)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
136
Worley Annual Report 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Net Income
Dividends received from associates
Interest received
Finance costs paid
Income taxes paid
Net cash inflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisition of controlled entities and other investments, net of cash acquired
Payments for purchase of property, plant and equipment and other intangibles
Proceeds from disposals of investments
Proceeds from sale of property, plant and equipment
Net cash inflow /(outflow) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of loans and borrowings
Proceeds from loans and borrowings
Lease liability payments
Costs of bank facilities
Net loans to related parties
Dividends paid to members of Worley Limited
Dividends paid to non-controlling interests
Net cash outflow from financing activities
Net (Decrease)/increase in cash
Cash and cash equivalents at the beginning of the financial year
Effects of foreign exchange rate changes on cash
Cash and cash equivalents at the end of the financial year
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
CONSOLIDATED
NOTES
7
21(C)
18(B)
7
2023
$’M
11,137
(10,744)
393
25
6
(94)
(70)
260
(26)
(82)
172
1
65
(10,429)
10,401
(107)
(5)
(1)
(262)
(9)
(412)
(87)
519
4
436
2022
$’M
9,863
(9,443)
420
1
4
(51)
(58)
316
(23)
(53)
12
2
(62)
(5,047)
5,184
(110)
(6)
(6)
(262)
(3)
(250)
4
493
22
519
Worley Annual Report 2023
137
137
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Notes to and forming part of the consolidated
financial statements
For the financial year ended 30 June 2023
1. CORPORATE INFORMATION
The financial report of Worley Limited (the "Company" or "Parent Entity") for the financial year ended 30 June 2023 was authorized for issue in accordance
with a resolution of the directors on 23 August 2023. The financial report is for the Group consisting of Worley Limited and its subsidiaries.
Worley Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX: WOR).
Worley Limited is a for-profit entity for the purposes of preparing these consolidated financial statements.
The nature of the operations and principal activities of the Company are described in notes 3 and 4.
CHANGE OF AUDITOR
The Company appointed a new auditor, PricewaterhouseCoopers (‘PwC’) to audit the 30 June 2023 Annual Financial Report. This was approved at the Annual
General Meeting and is a change from the previous auditor, Ernst & Young (‘EY’) who audited the 30 June 2022 Annual Financial Report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF ACCOUNTING
(i) Basis of preparation
This general purpose financial report has been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards (AAS) and other
authoritative pronouncements of the Australian Accounting Standards Board (AASB).
The Group is of a kind referred to in ASIC Corporations Instrument 2016/191 (Rounding in Financial/Directors' Reports) issued by the Australian Securities
and Investments Commission which relates to the “rounding off” of amounts in the Directors’ Report and consolidated financial statements. Unless
otherwise expressly stated, amounts have been rounded off to the nearest one million dollars in accordance with that Instrument. Amounts shown as 0
represent amounts less than AUD $500,000 which have been rounded.
(ii) Statement of compliance
The consolidated financial report complies with International Financial Reporting Standards and interpretations as issued by the International Accounting
Standards Board (IASB).
(iii) Historical cost convention
The financial statement has been prepared on a historical cost basis, except for derivative financial instruments, unlisted equity instruments, defined benefit
plans and assets held for sale, where applicable, that have been measured at fair value. The carrying values of recognized assets and liabilities that are
hedged with fair value hedges are adjusted to record changes in the fair values attributable to the risks that are being hedged.
(iv) Critical accounting estimates
In the application of AAS, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities. The
estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.
Management has identified the following critical accounting policies for which significant judgments, estimates and assumptions are made:
• revenue recognition, refer note 4;
• expected credit loss allowance, refer note 8;
• goodwill and intangible assets with identifiable useful lives, refer note 10;
• project, warranty and other provisions, refer note 11;
• inclusion and classification of contingent liabilities, refer note 25;
• recovery and valuation of deferred tax assets and liabilities, refer note 29; and
• measurement of assets and liabilities of the disposal group, refer note 21(C).
Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial
position reported in future periods.
138
138
Worley Annual Report 2023
Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Overview
Context & strategy
Operating & financial review
Financial statements
Notes to and forming part of the consolidated
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(v) Adoption of new and amended accounting standards and interpretations
financial statements
For the financial year ended 30 June 2023
1. CORPORATE INFORMATION
The financial report of Worley Limited (the "Company" or "Parent Entity") for the financial year ended 30 June 2023 was authorized for issue in accordance
with a resolution of the directors on 23 August 2023. The financial report is for the Group consisting of Worley Limited and its subsidiaries.
Worley Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange (ASX: WOR).
Worley Limited is a for-profit entity for the purposes of preparing these consolidated financial statements.
The nature of the operations and principal activities of the Company are described in notes 3 and 4.
CHANGE OF AUDITOR
The Company appointed a new auditor, PricewaterhouseCoopers (‘PwC’) to audit the 30 June 2023 Annual Financial Report. This was approved at the Annual
General Meeting and is a change from the previous auditor, Ernst & Young (‘EY’) who audited the 30 June 2022 Annual Financial Report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF ACCOUNTING
(i) Basis of preparation
This general purpose financial report has been prepared in accordance with the Corporations Act 2001, Australian Accounting Standards (AAS) and other
authoritative pronouncements of the Australian Accounting Standards Board (AASB).
The Group is of a kind referred to in ASIC Corporations Instrument 2016/191 (Rounding in Financial/Directors' Reports) issued by the Australian Securities
and Investments Commission which relates to the “rounding off” of amounts in the Directors’ Report and consolidated financial statements. Unless
otherwise expressly stated, amounts have been rounded off to the nearest one million dollars in accordance with that Instrument. Amounts shown as 0
represent amounts less than AUD $500,000 which have been rounded.
The consolidated financial report complies with International Financial Reporting Standards and interpretations as issued by the International Accounting
(ii) Statement of compliance
Standards Board (IASB).
(iii) Historical cost convention
(iv) Critical accounting estimates
circumstances.
The financial statement has been prepared on a historical cost basis, except for derivative financial instruments, unlisted equity instruments, defined benefit
plans and assets held for sale, where applicable, that have been measured at fair value. The carrying values of recognized assets and liabilities that are
hedged with fair value hedges are adjusted to record changes in the fair values attributable to the risks that are being hedged.
In the application of AAS, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities. The
estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.
Management has identified the following critical accounting policies for which significant judgments, estimates and assumptions are made:
• revenue recognition, refer note 4;
• expected credit loss allowance, refer note 8;
• goodwill and intangible assets with identifiable useful lives, refer note 10;
• project, warranty and other provisions, refer note 11;
• inclusion and classification of contingent liabilities, refer note 25;
• recovery and valuation of deferred tax assets and liabilities, refer note 29; and
• measurement of assets and liabilities of the disposal group, refer note 21(C).
position reported in future periods.
138
Worley Annual Report 2023
Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial
New and revised accounting standards, amendments or AASB interpretations which became applicable for the current reporting period as disclosed below
did not have any impact on the Group:
Applicable 1 July 2022 (FY2023)
Onerous Contracts - Costs of Fulfilling a Contract - Amendments to IAS 37
(vi) New accounting standards not yet applicable
The AASB has issued a number of standards and interpretations, which are not effective until future reporting periods as disclosed below:
Applicable 1 July 2023 (FY2024)
• AASB 17 Insurance Contracts (AASB 17)
• Disclosure of Accounting Policies and Definition of Accounting Estimates (Amendments to AASB 101, 108 and AASB Practice Statement 2)
• Deferred Tax relating to Assets and Liabilities arising from a Single Transaction (Amendments to AASB 112)
Applicable 1 July 2024 (FY2025)
• Lease liability in a Sale and Leaseback (Amendments to AASB 16 Leases)
The Group has not early adopted any standards or interpretations which are not yet applicable; however notwithstanding that, the estimated impact on
adoption is not expected to have a material impact on the Group.
Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules (Amendments to AASB112)
The AASB has issued AASB 2023-2, which provides temporary relief from accounting for deferred taxes arising from the Organisation for Economic Co-
operation and Development’s (OECD’s) international tax reform. This Standard amends AASB 112 to introduce a mandatory temporary exception to
accounting for deferred taxes arising from the implementation of the Pillar Two model rules published by the Organisation for Economic Co-operation and
Development (OECD); and targeted disclosure requirements to help financial statement users better understand an entity’s exposure to income taxes arising
from the reform, particularly in periods before legislation implementing the rules is in effect.
This Standard applies to annual periods beginning on or after 1 January 2023 that end on or after 30 June 2023. Earlier application is permitted. The Group
has applied the exception from recognizing and disclosing information regarding deferred tax assets and liabilities related to Pillar Two income taxes.
(B) BASIS OF CONSOLIDATION
The consolidated financial statements incorporate the assets and liabilities of all entities controlled by Worley Limited as at 30 June 2023 and the results of
all controlled entities for the financial year then ended. Worley Limited and its controlled entities together are referred to in this financial report as the
consolidated entity or Group. Investments in associates are equity accounted and are not part of the consolidated entity (refer note 22).
The impact of all transactions between entities in the consolidated entity is eliminated. Non-controlling interests in the results and equity of controlled
entities are shown separately in the Consolidated Statement of Financial Performance and Other Comprehensive Income and Consolidated Statement of
Financial Position.
Non-controlling interests not held by the Company are allocated their share of net profit after tax and total comprehensive income net of tax in the
Consolidated Statement of Financial Performance and Other Comprehensive Income and are presented within equity in the Consolidated Statement of
Financial Position separately from the equity of members of Worley Limited.
(C) FOREIGN CURRENCY TRANSLATION
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the
entity operates (functional currency). The consolidated financial statements are presented in Australian dollars which is the Group’s presentation currency.
(ii) Translation of foreign currency transactions
Transactions denominated in a foreign currency are converted at the foreign exchange rate at the date of the transaction. Foreign currency denominated
receivables and payables at balance date are translated at foreign exchange rates at balance date. Foreign exchange gains and losses are brought to account
in determining the profit and loss for the financial year.
(D) OTHER ACCOUNTING POLICIES
Significant and other accounting policies that summarize the measurement basis used and are relevant to the understanding of the consolidated financial
statements are provided throughout the notes.
Worley Annual Report 2023
139
139
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
3. SEGMENT INFORMATION
(A) IDENTIFICATION OF OPERATING SEGMENTS
The Group's operating segments are reported on a regional basis as follows:
• Americas;
• EMEA; and
• APAC.
The Group has also included additional information segmented according to its market sector Groups. These segments are consistent with those reported at
30 June 2022.
(B) OPERATING SEGMENTS
Professional services revenue
Construction and fabrication revenue
Procurement revenue at margin
Other income
Total aggregated revenue 1
Segment EBITA2
Segment margin
Segment margin (excluding procurement revenue at margin)3
Other segment information
Depreciation and amortization expense4
Share of net profits of associates accounted for using the equity method
Carrying value of equity accounted associates
Purchase of non-current assets
(C) MARKET SECTOR GROUPS
Professional services revenue
Construction and fabrication revenue
Procurement revenue at margin
Other income
Total aggregated revenue
Segment EBITA
Segment margin
Segment margin (excluding procurement revenue at margin)
AMERICAS
EMEA
APAC
TOTAL
2023
$’M
2,201
2,283
360
2
2022
$’M
1,860
2,198
129
-
2023
$’M
2,578
721
724
-
2022
$’M
2,300
608
260
-
2023
$’M
1,952
-
107
-
2022
$’M
1,594
-
110
6
2023
$’M
6,731
3,004
1,191
2
2022
$’M
5,754
2,806
499
6
4,846
4,187
4,023
3,168
2,059
1,710 10,928
9,065
297
6.1%
6.6%
271
6.5%
6.7%
329
8.2%
10.0%
283
8.9%
9.7%
222
10.8%
11.4%
181
10.6%
11.3%
48
(5)
22
21
47
(1)
29
11
67
23
152
14
80
8
145
22
50
5
22
47
40
1
15
20
848
7.8%
8.7%
165
23
196
82
735
8.1%
8.6%
167
8
189
53
ENERGY
CHEMICALS
RESOURCES
TOTAL
2023
$’M
2,888
1,861
441
2
2022
$’M
2,523
1,719
229
6
2023
$’M
2,356
1,075
214
-
2022
$’M
2,157
1,032
119
-
2023
$’M
1,487
68
536
-
2022
$’M
1,074
55
151
-
2023
$’M
6,731
3,004
1,191
2
2022
$’M
5,754
2,806
499
6
5,192
4,477
3,645
3,308
2,091
1,280
10,928
9,065
360
6.9%
7.6%
327
7.3%
7.7%
318
8.7%
9.3%
302
9.1%
9.5%
170
8.1%
10.9%
106
8.3%
9.4%
848
7.8%
8.7%
735
8.1%
8.6%
1 Aggregated revenue represents segment revenue, which is defined as statutory revenue and other income plus share of revenue from associates, less procurement revenue at nil
margin and less interest income. The directors believe that this disclosure of provides additional information in relation to the financial performance of the Group.
2 Segment earnings before interest, tax and amortization of acquired intangible assets (EBITA) is aggregated revenue less segment expenses and excludes the items listed in note
3(G). It is the key financial measure that is presented to the chief operating decision maker.
3 The Group delivers value to customers by providing engineering and construction expertise. In delivering such services, the Group will procure goods or services and earn margin
on the subsequent sale to customers. Procurement at Margin is considered a key value added service which would not occur without the engineering or construction services.
Consequently, Segment EBITA margin (excluding procurement revenue at margin) is calculated as Segment EBITA / (Total Aggregated Revenue less Procurement Revenue at
Margin).
4 Excludes amortization on acquired intangible assets and impairments, but includes amortization of leased right of use assets.
140
140
Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
3. SEGMENT INFORMATION (CONTINUED)
(D) RECONCILIATION OF AGGREGATED REVENUE TO TOTAL REVENUE AND OTHER INCOME PER THE CONSOLIDATED STATEMENT OF FINANCIAL
PERFORMANCE
Aggregated revenue
Procurement revenue at nil margin (including share of revenue from associates)
Share of revenue from associates1
Interest income
Total revenue and other income per the Consolidated Statement of Financial Performance
TOTAL
2023
$’M
10,928
1,192
(794)
7
11,333
2022
$’M
9,065
946
(310)
4
9,705
(E) RECONCILIATION OF SEGMENT EBITA TO PROFIT AFTER INCOME TAX EXPENSE PER THE CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
TOTAL
Segment EBITA
Global support costs
Strategic costs2
Interest and tax for associates
Total underlying earnings before interest, tax and amortization of intangibles acquired through business combinations (underlying EBITA)
Total underlying EBITA margin on aggregated revenue for the Group
Total underlying EBITA margin on aggregated revenue for the Group (excluding procurement revenue at margin)
Costs in relation to cost saving programs
Impact of transformation and restructuring:3
Shared services transformation
Payroll and other restructuring costs
Other transformation and transition costs
Loss on sale of disposal group and related expenses
Net impact of historical legal matters
Impact of withdrawal from Russia
Other
Total EBITA
EBITA margin on aggregated revenue for the Group (excluding procurement revenue at margin)
Amortization of acquired intangible assets
Net finance costs
Income tax expense
Profit after income tax expense per the Consolidated Statement of Financial Performance
2023
$’M
848
(164)
(37)
(12)
635
5.8%
6.5%
(50)
(50)
-
-
(240)
-
-
-
345
3.2%
(89)
(110)
(100)
46
2022
$’M
735
(154)
(30)
(4)
547
6.0%
6.4%
(67)
(53)
(15)
1
-
(16)
(14)
(1)
449
5.0%
(95)
(60)
(117)
177
1 Calculated on an aggregate revenue basis.
2 Strategic costs comprise of costs for strategic hires and agile team development in targeted sustainability growth areas, digital enablement, internal training and development,
and creating and building strategic partnerships to deliver sustainable solutions at scale.
3 Impact of transformation and restructuring costs comprise of shared service transformation and in the prior year also comprised payroll ,other restructuring and transition cost
Worley Annual Report 2023
141
141
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
3. SEGMENT INFORMATION (CONTINUED)
(F) GEOGRAPHIC SEGMENTS1
Revenue from external customers2
2023
Europe, Middle East and Africa
United States of America
Other Americas
Australia, Pacific, Asia and China
Total
Other income per Segment
Interest income
AGGREGATED
REVENUE
$’M
4,023
2,453
2,393
2,059
10,928
ADD:
PROCUREMENT
REVENUE AT
NIL MARGIN
$’M
ADD:
PASS-
THROUGH
REVENUE AT
NIL MARGIN
$’M
LESS:
SHARE OF
REVENUE FROM
ASSOCIATES
$’M
481
511
163
37
1,192
-
-
-
-
-
(687)
(45)
(5)
(57)
(794)
Total revenue and other income per the Consolidated Statement of Financial Performance
2022
Europe, Middle East and Africa
United States of America
Other Americas
Australia, Pacific, Asia and China
Total
Other income per Segment
Interest income
ADD:
PROCUREMENT
REVENUE AT
NIL MARGIN
$’M
ADD:
PASS-
THROUGH
REVENUE AT
NIL MARGIN
$’M
LESS:
SHARE OF
REVENUE FROM
ASSOCIATES
$’M
478
341
115
12
946
-
-
-
-
-
(250)
(26)
(6)
(28)
(310)
AGGREGATED
REVENUE
$’M
3,168
1,956
2,231
1,710
9,065
Total revenue and other income per the Consolidated Statement of Financial Performance
Non-current assets by geographical location:3
Europe, Middle East and Africa
United States of America
Other Americas
Australia, Pacific, Asia and China
Non-current assets by geographical location
LESS:
OTHER
INCOME
$’M
-
(2)
-
-
(2)
LESS:
OTHER
INCOME
$’M
-
-
-
(6)
(6)
TOTAL
REVENUE
FROM
EXTERNAL
CUSTOMERS
$’M
3,817
2,917
2,551
2,039
11,324
2
7
11,333
TOTAL
REVENUE
FROM
EXTERNAL
CUSTOMERS
$’M
3,396
2,271
2,340
1,688
9,695
6
4
9,705
2023
$’M
316
1,146
115
99
1,676
2022
$’M
227
1,343
83
100
1,753
1 Geographic locations are presented across all business lines.
2 Revenue is attributed to the geographic location based on the entity providing the services.
3 Excludes goodwill, deferred tax assets and derivative financial instruments.
142
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Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
3. SEGMENT INFORMATION (CONTINUED)
(G) ACCOUNTING POLICIES AND INTER-SEGMENT TRANSACTIONS
Segment revenues and expenses are those that are directly attributable to a segment and the relevant portion can be allocated to the segment on a
reasonable basis.
Segment revenues, expenses and results include transactions between segments incurred in the ordinary course of business. These transactions are priced
on an arm’s length basis and are eliminated on consolidation.
The accounting policies used by the Group in reporting segments internally are the same as those contained in these consolidated financial statements and
are consistent with those in the prior period.
The segment EBITA includes the allocation of overhead that can be directly attributed to an individual business segment. The following items and associated
assets and liabilities are not allocated to segments as they are not considered part of the core operations of any segment:
• global support costs;
• strategic costs;
• interest expense;
• amortization of acquired intangible assets;
• costs in relation to cost saving programs;
• other non-recurring gains and losses as described in note 3(E); and
• income tax expense.
4. REVENUE AND OTHER INCOME
Professional services revenue
Construction and fabrication revenue
Procurement revenue at margin
Procurement revenue at nil margin
Revenue
Other income
Interest income
Total revenue and other income
CONSOLIDATED
2023
$’M
6,397
3,004
731
1,192
11,324
2
7
2022
$’M
5,444
2,806
499
946
9,695
6
4
11,333
9,705
The amount of revenue recognized in the financial year 2023 from performance obligations satisfied (or partially satisfied) in previous periods is nil (2022: $6
million) and is mainly due to the changes in the estimate of the stage of completion.
In addition to billings in advance balances, which represent amounts billed for which the relevant performance obligation has yet to be satisfied, a further
$569 million (2022: $605 million) of revenue (lump sum projects with an expected duration of one year or more) is expected to be recognized in the future,
relating to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date.
Worley Annual Report 2023
143
143
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
4. REVENUE AND OTHER INCOME (CONTINUED)
RECOGNITION AND MEASUREMENT
Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the
consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue is recognized and disclosed net of trade
allowances, duties and taxes paid.
The Group utilizes a five-step approach to revenue recognition which requires the Group to identify contracts and performance obligations, determine the
transaction price, allocate the transaction price to each performance obligation and recognize revenue as each performance obligation is satisfied.
The Group exercises judgment, taking into consideration all the relevant facts and circumstances when applying each step of the model to contracts with its
customers.
The Group’s main revenue streams are as follows:
Professional services revenue
• The Group performs engineering design and project delivery services. These activities are usually highly integrated and accordingly, where appropriate, are
accounted for as a single performance obligation. Performance obligations are fulfilled over time as the services are delivered, as the Group has a right of
payment for services delivered to date together with the highly customized nature of the services provided. Consequently, the Group recognizes revenue
for these service contracts over time. Payment terms depend on the contract's specifics and usually are within 30 to 60 days.
Construction and fabrication revenue
• The Group performs construction and fabrication services. These activities are highly integrated and accordingly, where appropriate, are accounted for as a
single performance obligation. Performance obligations are fulfilled over time as the services are delivered, as the Group has a right of payment for services
delivered to date together with the highly customized nature of the services provided. Consequently, the Group recognizes revenue for these construction
contracts over time. Payment terms are usually based on milestones achieved and are within 30 to 60 days from the date of the invoice.
Procurement revenue
• Procurement revenue represents services from contracts entered into with the customers to acquire, on their behalf, equipment produced by various
suppliers and/or services provided by different subcontractors. The Group executes procurement services as a principal and as an agent. Where the Group
controls the promised goods or services before transferring them to the customer, the Group is a principal and records revenue and costs on a gross basis.
If the Group does not control the promised goods and services before transferring to the customer, i.e. the Group’s role is to arrange for another entity to
provide the goods or services, then the Group is an agent and records revenue and costs at the net amount that it retains for its agency services (margin).
The performance obligation is satisfied over time and payment is usually due upon receipt of the equipment by the customer or as subcontractor services
are performed, depending on the terms of the contract. Payment terms are usually within 30 to 60 days.
The Group measures revenue on the basis of the effort expended relative to the total expected effort to complete the service. Revenue on reimbursable
contracts is recognized in the same period as the associated costs based on agreed rates in accordance with the timing of work performed as it reflects the
expected effort to fulfil the performance obligation. For lump sum contracts, the Group considers the terms of the contract, internal models and other
sources when estimating the projected total cost and stage of completion.
The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by
the customer exceeds one year. Therefore, the Group does not adjust any of the transaction prices for the time value of money.
KEY ESTIMATES
The percentage of completion is estimated by qualified professionals within the project teams. Estimates of revenues, costs or extent of progress toward
completion are revised if circumstances change.
Variable consideration, including performance incentives, is recognized from the outset of the contract but only to the extent that it is highly probable that a
significant revenue reversal will not occur. This estimate takes into account the facts and circumstances of each individual contract and historical experience
and is reassessed throughout the life of the contract.
The Group provides assurance warranties for general rework which are accounted for in accordance with AASB 137 Provisions, Contingent Liabilities and
Contingent Assets.
Interest
Interest income is recognized as it accrues using the effective interest rate method including interest income on subleases that are classified as finance
leases under AASB 16 Leases.
Dividends
Revenue is recognized when the Group’s right to receive the payment is established.
Contract costs
Costs to obtain or fulfil a contract (contract costs) include all costs directly related to specific contracts that are specifically chargeable to the customer under
the terms of the contract, and an allocation of overhead expenses incurred in connection with the Group’s activities in general. The Group’s contract costs are
expensed as incurred, unless they are allowed for capitalization under the accounting standards.
144
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Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
5. EXPENSES AND LOSSES/(GAINS)
Profit before income tax expense includes the following specific expenses and losses/(gains):
NOTES
CONSOLIDATED
2023
$’M
2022
$’M
EXPENSES AND LOSSES/(GAINS)
Short term employee benefits
Post-employment benefits
Share based payments
Total staff costs
Costs in relation to cost saving programs
Impact of transformation and restructuring:1
Shared services transformation
Payroll and other restructuring costs
Other transformation and transition costs 2
Other
Transition, transformation and restructuring costs
Strategic costs
Loss on sale of disposal group and related expenses 21(C)
Net impact of historical legal matters 8
Impact of withdrawal from Russia 21(D)
Other costs
Short term, low-value and variable leases expense
Amortization of intangible assets, right of use (RoU) assets and leasehold improvements
Depreciation
MOVEMENTS IN PROVISIONS3
Employee benefits
Insurance
Onerous contracts
Warranty
Project losses and other
6,028
113
25
6,166
50
50
-
-
-
50
37
240
-
-
-
29
203
51
412
(9)
3
21
15
5,401
108
20
5,529
67
53
15
(1)
(2)
65
30
-
16
14
30
23
208
54
355
4
(3)
13
(14)
Shared services transformation and payroll and other transformation and restructuring costs comprise the costs of restructuring and redundancy payments
in the planning and execution of transformation.
Strategic costs comprise of costs for strategic hires and agile team development in targeted sustainability growth areas, digital enablement, internal training
and development, and creating and building strategic partnerships to deliver sustainable solutions at scale.
RECOGNITION AND MEASUREMENT
Employee benefits
Employee benefits expenses are charged against profit on a net basis in their respective categories.
Share based payments – equity and cash settled rights
Equity rights (rights) over the ordinary shares of Worley Limited are granted to executive directors and other executives of the consolidated entity for nil
consideration in accordance with performance guidelines approved by the Board. The fair values of the rights are amortized on a straight line basis over their
performance period. For share settled rights, the fair value of the rights is the share price at grant date adjusted for the impact of performance hurdles and
other vesting or exercise criteria attached to the right. For cash settled rights, the fair value of the rights is recalculated at the end of each reporting period
and amortized on a straight line basis over their vesting period. The accounting estimates and assumptions relating to equity settled rights would have no
impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.
1 Impact of transformation and restructuring costs comprise of shared service transformation and in the prior year also comprised payroll ,other restructuring and transition cost
2 Reversal of impairment of right of use assets and the related onerous property maintenance contract component $1 million
3 Excludes amounts utilized and forex
Worley Annual Report 2023
145
145
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
5. EXPENSES AND LOSSES/(GAINS) (CONTINUED)
Fair value per right at grant date is independently determined using an appropriate option pricing model that takes into account the exercise price, the term
of the right, the vesting and performance criteria, the impact of dilution, the non-traded nature of the right, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the right. This amount represents the actual cost
to the Company. A Monte Carlo simulation is applied to fair value the TSR component and the strategic hurdle rights. For the EPS, EBIT and “continuous
employment" condition, the Black-Scholes model is utilized. Total fair value at grant date is calculated by multiplying the fair value per right by the number
of rights granted. This does not represent the actual value the executive will derive from the grant which will depend on the achievement of performance
hurdles measured over the vesting period. The maximum value of the rights granted has been estimated based on the fair value per right. The minimum total
value of the rights granted, if the applicable performance hurdles are not met, is nil.
Borrowing costs
Borrowing costs are recognized as expenses in the period in which they are incurred, except when they are included in the costs of qualifying assets.
Borrowing costs include:
• interest on bank overdrafts, short term and long term loans and borrowings;
• amortization of discounts or premiums relating to loans and borrowings and non-current payables; and
• interest on lease liabilities.
Amortization and depreciation
Identifiable intangible assets
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are amortized over their useful life and
tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period for an intangible asset with a finite
useful life is reviewed at least each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for prospectively by changing the amortization period. The amortization expense on intangible assets with finite lives is
recognized in the Consolidated Statement of Financial Performance and Other Comprehensive Income on a straight line basis over the following periods:
• customer contracts and relationships
• trade names
• computer software
• other
Property, plant and equipment
3-15 years;
5-20 years;
2-7 years; and
3-10 years.
Depreciation is calculated on a straight line basis to write off the net cost of each item of property, plant and equipment (excluding land) over its expected
useful life to the consolidated entity. The expected useful lives for plant and equipment range from 3 to 10 years and buildings range from 30 to 40 years.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.
The cost of improvements to or on leasehold properties is amortized over the unexpired period of the lease or the estimated useful life of the improvement
to the consolidated entity, whichever is the shorter.
Goods and services tax (GST)
Expenses are recognized net of the amount of GST, except where the GST incurred is not recoverable from the taxation authority. In these circumstances,
GST is recognized as part of the expense.
146
146
Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
6. INCOME TAX
(A) INCOME TAX EXPENSE
Current tax
Deferred tax
Under/(over) provision in previous financial periods
Income tax expense
Deferred income tax expense included in income tax expense comprises:
(Decrease)/Increase in deferred tax assets
Decrease in deferred tax liabilities
Deferred tax (benefit)/expense
(B) RECONCILIATION OF PRIMA FACIE TAX PAYABLE TO INCOME TAX EXPENSE
Profit before income tax expense
Prima facie tax expense at Worley Limited’s statutory income tax rate of 30% (2022: 30%)
Tax effect of amounts which are non-deductible/(non-taxable) in calculating taxable income:
Non-deductible loss on sale of subsidiary
Certain withholding tax assets write off
Non-deductible items under US tax law
Non-deductible shared based payments expense
Under/(over) provision in previous financial periods
Tax losses not previously recognized
Difference in overseas tax rates and other
Share of profits of associates accounted for using the equity method
Valuation allowance against certain deferred tax assets
Income tax expense
CONSOLIDATED
2023
$’M
2022
$’M
137
(43)
6
100
(79)
36
(43)
146
44
36
12
11
8
6
(16)
6
(7)
-
100
57
67
(7)
117
25
42
67
294
88
-
15
27
6
(7)
(4)
(15)
(2)
9
117
(C) AMOUNTS RECOGNIZED DIRECTLY IN EQUITY
Aggregate amount of tax arising in the reporting period and not recognized in profit after income tax expense but directly debited or credited to equity:
Deferred tax - debited/(credited) directly to equity
(7)
6
(D) TAX LOSSES
The Group has tax losses for which no deferred tax asset is recognized on the Consolidated Statement of Financial Position:
Unused tax losses for which no deferred tax asset has been recognized
Potential tax benefit at 30%
265
80
321
96
The benefit for tax losses will only be recognized if:
• the relevant tax entity derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to
be realized; or
• the losses are transferred to an eligible entity in the relevant tax entity; and
• the relevant tax entity continues to comply with conditions for deductibility imposed by tax legislation; and
• no changes in legislation adversely affect the relevant entity in realizing the benefit from the deductions for the losses.
Worley Annual Report 2023
147
147
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
6. INCOME TAX (CONTINUED)
RECOGNITION AND MEASUREMENT
Income tax
The income tax expense for the period is the tax payable on the current period's taxable income based on the income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities as well as any adjustments required between prior periods' current tax expense and income tax returns and any
relevant withholding taxes.
Current and deferred tax amounts relating to items recognized directly in equity are recognized in equity and not in the Consolidated Statement of Financial
Performance.
Tax consolidation
Worley Limited and its wholly owned Australian entities elected to form a tax consolidated Group from 1 July 2003. On formation of the tax consolidated
Group, the entities in the tax consolidated Group entered into a tax sharing agreement which, in the opinion of the directors, limits the joint and several
liability of the wholly owned entities in the case of a default by the head entity, Worley Limited.
The entities have also entered into a tax funding agreement under which the wholly owned entities fully compensate Worley Limited for any current tax
liability assumed and are compensated by Worley Limited for any current tax loss, deferred tax assets and tax credits that are transferred to Worley Limited
under the tax consolidation legislation.
CONSOLIDATED
7. CASH AND CASH EQUIVALENTS
Cash and cash equivalents per Consolidated Statement of Financial Position
Procurement cash and cash equivalents
Cash at bank and on hand
Balance per the Consolidated Statement of Cash Flows
Reconciliation of profit after income tax expense to net cash inflow from operating activities:
Profit after income tax expense
NON-CASH ITEMS
Amortization
Depreciation
Impairments
Share based payments expense
Expected credit loss (ECL)
Share of associates' profits in excess of dividends received
Impairment of investments including equity accounted associates
Loss on Sale of disposal group
Other
Cash flow adjusted for non-cash items
CHANGES IN ASSETS AND LIABILITIES
Increase in trade receivables, contract assets and other receivables
(Increase)/decrease in prepayments and other current assets
(Increase)/decrease in deferred tax assets
Decrease/(Increase) income tax receivable
Increase/(decrease) in trade and other payables
(Decrease)/Increase in billings in advance
Increase in income tax payable
(Decrease)/increase in deferred tax liabilities
Increase/(decrease) in provisions
Net cash inflow from operating activities
148
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Worley Annual Report 2023
NOTES
27
2023
$’M
425
11
436
436
46
203
51
-
25
18
3
-
217
8
571
(401)
(74)
(61)
45
219
(95)
7
(8)
57
260
2022
$’M
507
12
519
519
177
208
54
(2)
20
26
(7)
1
-
9
486
(202)
42
21
(24)
(15)
47
3
30
(72)
316
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
7. CASH AND CASH EQUIVALENTS (CONTINUED)
RECOGNITION AND MEASUREMENT
Cash and cash equivalents in the Consolidated Statement of Financial Position comprise cash at bank and in hand and short term deposits with an original
maturity of three months or less that are readily convertible to known amounts of cash. Bank overdrafts are included within interest bearing loans and
borrowings and lease liabilities in current liabilities in the Consolidated Statement of Financial Position.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents, as defined above, net of
outstanding bank overdrafts. Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis. The GST component of cash flows
arising from investing and financing activities is classified as an operating cash flow.
Where cash and cash equivalents held by the Group are subject to external restrictions, the nature of the restrictions and value of cash subject to these
restrictions are disclosed below.
RESTRICTED AND PROCUREMENT CASH AND CASH EQUIVALENTS
Cash and cash equivalents include restricted cash of $9 million (2022: $50 million) that is available for use under certain circumstances by the Group, this
includes $4 million (2022: $16 million) held in Russian bank accounts that the Group is working to repatriate (refer to note 21(D). In the prior period, the $50
million restricted cash included $29 million which was held in accounts (guarantees for legal matters) subject to court ordered restricted access. This legal
matter is now resolved, and the cash moved to other cash accounts in the Group (refer to note 25(B).
Procurement cash is held in relation to procurement activities undertaken by the Group on behalf of its customers (refer note 27). Included within
procurement assets are cash and cash equivalents of $11 million (2022: $12 million).
8. TRADE RECEIVABLES, CONTRACT ASSETS, AND OTHER ASSETS
CURRENT TRADE RECEIVABLES AND CONTRACT ASSETS
Trade receivables
Unbilled contract revenue
Retentions
Expected credit loss (ECL) allowance on trade receivables
Less: procurement trade and other receivables
Movement in ECL allowance in respect of trade receivables and contract assets during the year was as
follows:
Balance at the beginning of the financial year
Net remeasurement of ECL allowance
Amounts written off against the opening ECL allowance
Transfer from non-current ECL allowance
Differences arising on translation of foreign operations
Balance at the end of the financial year
OTHER CURRENT ASSETS
Other receivables
Inventory
Amounts receivable from associates and related parties
NON-CURRENT TRADE RECEIVABLES AND CONTRACT ASSETS1
Trade receivables
Unbilled contract revenue
ECL allowance on trade receivables
NOTES
CONSOLIDATED
2023
$’M
2022
$’M
27
31(B)
1,198
921
63
(43)
(166)
1,973
72
18
(45)
-
(2)
43
251
47
50
348
70
74
(9)
135
1,261
843
72
(72)
(152)
1,952
30
26
(1)
16
1
72
143
35
37
215
67
69
(8)
128
1 Non - current trade receivables and unbilled contract revenue relate to projects where recovery is expected to take greater than twelve months. As at 30 June 2023, $50m of non-
current payables relate to these non-current trade receivables and unbilled contract revenue (30 June 2022: $48m)
Worley Annual Report 2023
149
149
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
8. TRADE RECEIVABLES, CONTRACT ASSETS, AND OTHER ASSETS (CONTINUED)
Significant movements in unbilled contract revenue are primarily due to normal trading activity.
RECOGNITION AND MEASUREMENT
A trade receivable is recognized when the goods and services are delivered as this is the point in time that the consideration is unconditional because only the
passage of time is required before the payment is due. Trade receivables are generally on terms of 30 to 60 days. Receivables are stated with the amount of
GST included.
Unbilled contract revenue is initially recognized when the Group provides services or procures goods for a customer before the customer pays consideration
or before a payment is due. Unbilled contract revenue represents the Group’s contract assets at the reporting date. These assets are reclassified to trade
receivables when the customer is billed as stipulated in the contract, i.e. when the rights to consideration become unconditional. Unbilled contract revenue is
stated at the aggregate of contract costs incurred to date plus recognized profits less recognized losses and progress billings.
Inventory is recorded at the lower of cost and net realizable value. Costs are assigned to individual items of inventory on a weighted average costing basis.
When inventories are sold, the carrying value of inventories is recognized as an expense in the period in which the associated revenue is recognized. The
amount of any write down of inventory is recognized as an expense in the period the write down occurs.
Trade and other receivables are measured at amortized cost as they are held to collect contractual cash flows that consist solely of payments of principal
and interest on the principal amounts outstanding. At initial recognition, the Group measures trade and other receivables at transaction value with
subsequent measurement at amortized cost.
KEY ESTIMATES
For trade receivables and unbilled contract revenue, the Group applies the simplified approach in calculating ECLs. Therefore, the Group does not track
changes in credit risk, but instead recognizes an allowance based on lifetime ECLs experience at each reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
Despite any ECL booked, the Group reserves the right to collect any receivables owed to the Group at 30 June 2023.
9. TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Accruals
Amounts payable to associates and related parties
Billings in advance
Accrued staff costs
Less: procurement trade and other payables
NON-CURRENT
Trade payables1
Significant movements in billings in advance are primarily due to normal trading activity.
The Group’s exposure to currency and interest rate risk for trade and other payables is disclosed in note 19.
NOTES
31(B)
27
CONSOLIDATED
2023
$’M
2022
$’M
684
392
-
275
289
(211)
1,429
50
50
627
301
4
369
248
(199)
1,350
53
53
1 Non-current payables of $50million (2022: $48 million) relate to non-current trade receivables and unbilled contract revenue on projects where recovery is expected to take
greater than twelve months as disclosed in note 8.
150
150
Worley Annual Report 2023
Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Overview
Context & strategy
Operating & financial review
Financial statements
8. TRADE RECEIVABLES, CONTRACT ASSETS, AND OTHER ASSETS (CONTINUED)
Significant movements in unbilled contract revenue are primarily due to normal trading activity.
RECOGNITION AND MEASUREMENT
GST included.
A trade receivable is recognized when the goods and services are delivered as this is the point in time that the consideration is unconditional because only the
passage of time is required before the payment is due. Trade receivables are generally on terms of 30 to 60 days. Receivables are stated with the amount of
Unbilled contract revenue is initially recognized when the Group provides services or procures goods for a customer before the customer pays consideration
or before a payment is due. Unbilled contract revenue represents the Group’s contract assets at the reporting date. These assets are reclassified to trade
receivables when the customer is billed as stipulated in the contract, i.e. when the rights to consideration become unconditional. Unbilled contract revenue is
stated at the aggregate of contract costs incurred to date plus recognized profits less recognized losses and progress billings.
Inventory is recorded at the lower of cost and net realizable value. Costs are assigned to individual items of inventory on a weighted average costing basis.
When inventories are sold, the carrying value of inventories is recognized as an expense in the period in which the associated revenue is recognized. The
amount of any write down of inventory is recognized as an expense in the period the write down occurs.
Trade and other receivables are measured at amortized cost as they are held to collect contractual cash flows that consist solely of payments of principal
and interest on the principal amounts outstanding. At initial recognition, the Group measures trade and other receivables at transaction value with
subsequent measurement at amortized cost.
KEY ESTIMATES
For trade receivables and unbilled contract revenue, the Group applies the simplified approach in calculating ECLs. Therefore, the Group does not track
changes in credit risk, but instead recognizes an allowance based on lifetime ECLs experience at each reporting date. The Group has established a provision
matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
Despite any ECL booked, the Group reserves the right to collect any receivables owed to the Group at 30 June 2023.
9. TRADE AND OTHER PAYABLES
Amounts payable to associates and related parties
Less: procurement trade and other payables
CURRENT
Trade payables
Accruals
Billings in advance
Accrued staff costs
NON-CURRENT
Trade payables1
Significant movements in billings in advance are primarily due to normal trading activity.
The Group’s exposure to currency and interest rate risk for trade and other payables is disclosed in note 19.
NOTES
31(B)
27
CONSOLIDATED
2023
$’M
2022
$’M
684
392
-
275
289
(211)
1,429
50
50
627
301
4
369
248
(199)
1,350
53
53
9. TRADE AND OTHER PAYABLES (CONTINUED)
RECOGNITION AND MEASUREMENT
Liabilities for trade and other payables are measured at cost which is the fair value of the consideration to be paid in the future for goods and services
received, whether or not billed to the Group. Payables are stated with the amount of GST included.
Billings in advance or unearned revenue represent the Group’s obligation to transfer goods or services to a customer for which the Group has billed the
customer or received advance consideration from the customer. Billings in advance are recognized as revenue when the Group performs under the contract
and are classified as amortized cost subsequent to their initial recognition at fair value.
CONSOLIDATED
2023
$’M
2022
$’M
10. INTANGIBLE ASSETS
Goodwill
At cost
Accumulated Impairment
Customer contracts and relationships
At cost
Accumulated amortization
Computer software and other
At cost
Accumulated amortization
Total intangible assets
5,640
(200)
5,440
869
(388)
481
656
(509)
147
6,068
RECONCILIATIONS
Reconciliations of intangible assets at the beginning and end of the current and previous financial years are set out below:
Balance at 1 July 2022
Additions
Disposals
Amortization
Impairment
Differences arising on translation of foreign operations
Balance at 30 June 2023
Balance at 1 July 2021
Additions
Disposals
Amortization
Impairment
Differences arising on translation of foreign operations
Balance at 30 June 2022
CONSOLIDATED
GOODWILL
$’M
CUSTOMER CONTRACTS
AND RELATIONSHIPS
$’M
TRADE
NAMES
$’M
COMPUTER SOFTWARE
AND OTHER
$’M
5,404
4
(184)
-
-
216
5,440
5,220
-
-
-
-
184
5,404
582
-
(47)
(81)
-
27
481
647
-
-
(86)
-
21
582
-
-
-
-
-
-
-
1
-
-
(1)
-
-
-
169
18
(12)
(35)
-
7
147
188
13
(1)
(39)
(2)
10
169
5,604
(200)
5,404
899
(317)
582
661
(492)
169
6,155
TOTAL
$’M
6,155
22
(243)
(116)
-
250
6,068
6,056
13
(1)
(126)
(2)
215
6,155
1 Non-current payables of $50million (2022: $48 million) relate to non-current trade receivables and unbilled contract revenue on projects where recovery is expected to take
greater than twelve months as disclosed in note 8.
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Worley Annual Report 2023
151
151
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
10. INTANGIBLE ASSETS (CONTINUED)
RECOGNITION AND MEASUREMENT
Goodwill
Goodwill represents the excess of the purchase consideration over the fair value of identifiable net assets acquired at the time of acquisition of a business or
shares in controlled entities or associates. Goodwill on acquisition of controlled entities is included in intangible assets. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
Identifiable intangible assets
Intangible assets acquired separately or in a business combination have finite useful lives and are initially measured at cost. The cost of an intangible asset
acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and any accumulated impairment losses. Internally generated intangible assets are not capitalized, and expenditure is recognized
in the profit and loss in the year in which the expenditure is incurred.
Research costs are expensed as incurred. An intangible asset arising from development expenditure on an internal project is recognized only when the Group
can demonstrate:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• its intention to complete and its ability to use or sell the asset;
• how the asset will generate future economic benefits;
• the availability of resources to complete the development; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.
Impairment of assets
Goodwill is not amortized and is instead carried at cost less accumulated impairment. Goodwill is tested at least annually for impairment; more often where
impairment indicators are present.
For the purposes of impairment testing, goodwill acquired in a business combination is allocated to Groups of cash generating units (CGUs) that are expected
to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those Groups of CGUs.
Impairment is determined by assessing the recoverable amount of the Groups of CGUs to which the goodwill relates. The recoverable value of each CGU is
estimated based on its value in use, consistent with prior periods. When the recoverable amount of the Groups of CGUs is less than the carrying amount, an
impairment loss is recognized. Where certain assets cease to be a part of a CGU (including but not limited to right of use assets), they are tested for
impairment individually, and where required are written down to their recoverable value.
Impairment losses recognized for goodwill are not subsequently reversed. Impairment losses recognized for right of use assets can be subsequently reversed
where it is supported by the recoverable value amount.
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell, and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs).
Management has assessed that the lowest level at which goodwill is monitored is the three operating regions reporting to the Chief Executive Officer being
Americas, EMEA and APAC, unchanged from 30 June 2022.
152
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Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Overview
Context & strategy
Operating & financial review
Financial statements
10. INTANGIBLE ASSETS (CONTINUED)
RECOGNITION AND MEASUREMENT
Goodwill
Goodwill represents the excess of the purchase consideration over the fair value of identifiable net assets acquired at the time of acquisition of a business or
shares in controlled entities or associates. Goodwill on acquisition of controlled entities is included in intangible assets. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity sold.
Identifiable intangible assets
Intangible assets acquired separately or in a business combination have finite useful lives and are initially measured at cost. The cost of an intangible asset
acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and any accumulated impairment losses. Internally generated intangible assets are not capitalized, and expenditure is recognized
in the profit and loss in the year in which the expenditure is incurred.
Research costs are expensed as incurred. An intangible asset arising from development expenditure on an internal project is recognized only when the Group
can demonstrate:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale;
• its intention to complete and its ability to use or sell the asset;
• how the asset will generate future economic benefits;
• the availability of resources to complete the development; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.
Impairment of assets
impairment indicators are present.
Goodwill is not amortized and is instead carried at cost less accumulated impairment. Goodwill is tested at least annually for impairment; more often where
For the purposes of impairment testing, goodwill acquired in a business combination is allocated to Groups of cash generating units (CGUs) that are expected
to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those Groups of CGUs.
Impairment is determined by assessing the recoverable amount of the Groups of CGUs to which the goodwill relates. The recoverable value of each CGU is
estimated based on its value in use, consistent with prior periods. When the recoverable amount of the Groups of CGUs is less than the carrying amount, an
impairment loss is recognized. Where certain assets cease to be a part of a CGU (including but not limited to right of use assets), they are tested for
impairment individually, and where required are written down to their recoverable value.
Impairment losses recognized for goodwill are not subsequently reversed. Impairment losses recognized for right of use assets can be subsequently reversed
where it is supported by the recoverable value amount.
Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell, and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs).
Management has assessed that the lowest level at which goodwill is monitored is the three operating regions reporting to the Chief Executive Officer being
Americas, EMEA and APAC, unchanged from 30 June 2022.
10. INTANGIBLE ASSETS (CONTINUED)
Value in use calculations used for impairment testing use cash flow projections based on financial forecasts of how the business is expected to perform
consistent with current and historical experience and external data. The estimation of future cash flows requires assumptions to be made regarding future
uncertain events. Our strategy considers the global transition of the world’s energy to renewable fuels and the continued focus on sustainability related
activities across our sectors. These trends have been considered in the market data utilized to assess each CGU’s growth rate for impairment testing.
KEY ESTIMATES
The goodwill allocated to the material CGUs and the key assumptions used for the value in use impairment testing are as follows:
2023
Opening balance
Allocated goodwill (closing balance)
Risk-weighted pre-tax discount rate
Risk-adjusted growth rate beyond five years
2022
Opening balance
Allocated goodwill (closing balance)
Risk-weighted pre-tax discount rate
Risk-adjusted growth rate beyond five years
APAC
$’M
1,372
1,432
13.0%
3.3%
APAC
$’M
1,325
1,372
12.6%
3.4%
EMEA
$’M
1,482
1,549
9.7%
2.1%
EMEA
$’M
1,433
1,482
9.5%
2.3%
AMERICAS
$’M
2,550
2,459
9.4%
2.1%
AMERICAS
$’M
2,462
2,550
9.2%
2.1%
FORECAST CASH FLOWS
Forecast cash flows have been based on the Group’s past experience and the assessment of economic and regulatory factors affecting the markets within
which the Group operates. The Group’s pivot to sustainability provides the structural framework for growth and we are winning work in line with our strategy.
The Group is seeing sustainability opportunities across all of our sectors and is well positioned to capture these opportunities with both new and existing
customers. The forecast cashflows consider the current economic environment, including global inflation rates, and geopolitical issues. The compound annual
growth rates for the CGUs range from 5% to 12%.
SENSITIVITY ANALYSIS
The combined recoverable values of all CGUs exceed the carrying value by $2 billion (2022: $2 billion). Management recognizes that the cash flow projections,
discount and growth rates used to calculate the value in use may vary from what has been estimated.
The value in use estimate is particularly sensitive to the achievement of long-term growth rates, discount rates and the forecast performance. The Group has
performed detailed sensitivity analysis as part of its impairment testing to ensure that the testing results are reasonable.
Sensitivity analysis on the inputs for all CGUs is as follows:
• terminal growth rates: a 0.5% decrease (2022: 0.5% decrease) in the terminal growth rate will result in all CGUs being free of impairment at reporting date;
• post-tax discount rates: a 0.5% increase (2022: 0.5% increase) in the discount rate will result in all CGUs being free of impairment at reporting date; and
• forecast cash flows: a 5% decrease (2022: 5% decrease) in the forecast cash flows will result in all CGUs being free of impairment at reporting date.
11. PROVISIONS
CURRENT
Employee benefits
Project losses
Insurance
Onerous contracts
Warranty
Other
NON-CURRENT
Employee benefits
Warranty
Other
CONSOLIDATED
2023
$’M
2022
$’M
469
80
20
6
25
37
637
109
32
5
146
425
76
28
11
10
60
610
95
25
1
121
152
Worley Annual Report 2023
Worley Annual Report 2023
153
153
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
11. PROVISIONS (CONTINUED)
RECONCILIATIONS
Reconciliations of each class of current and non-current provision at the beginning and end of the current and previous financial years are set out below:
CURRENT
Balance at 1 July 2022
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Differences arising from translation of foreign operations
Balance at 30 June 2023
Balance at 1 July 2021
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Differences arising from translation of foreign operations
Balance at 30 June 2022
NON-CURRENT
Balance at 1 July 2022
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Differences arising from translation of foreign operations
Balance at 30 June 2023
Balance at 1 July 2021
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Differences arising from translation of foreign operations
Balance at 30 June 2022
CONSOLIDATED
EMPLOYEE
BENEFITS
$’M
PROJECT LOSSES
$’M
INSURANCE
$’M
ONEROUS
CONTRACTS
$’M
WARRANTY
$’M
OTHER
$’M
425
414
-
(20)
(368)
18
469
405
364
(13)
(9)
(328)
6
425
76
18
-
(12)
(7)
5
80
126
19
-
(32)
(34)
(3)
76
28
4
-
(13)
-
1
20
27
6
-
(2)
(5)
2
28
11
4
-
(1)
(7)
(1)
6
19
-
-
(3)
(6)
1
11
10
18
6
(12)
(1)
4
25
5
14
-
(7)
(4)
2
10
60
27
-
(18)
(32)
-
37
84
1
24
(22)
(25)
(2)
60
CONSOLIDATED
EMPLOYEE
BENEFITS
$’M
ONEROUS
CONTRACTS
$’M
WARRANTY
$’M
OTHER
$’M
95
16
-
-
(6)
4
109
83
9
13
(9)
(6)
5
95
-
-
-
-
-
-
-
2
-
-
-
(1)
(1)
-
25
17
(6)
(2)
-
(2)
32
20
8
-
(2)
-
(1)
25
1
3
-
-
-
1
5
32
-
(24)
(7)
(1)
1
1
RECOGNITION AND MEASUREMENT
Provisions are recognized when the consolidated entity has a legal, equitable or constructive obligation to make a future sacrifice of economic benefits to
other entities as a result of past transactions or other past events, it is probable that a future sacrifice of economic benefits will be required, and a reliable
estimate can be made of the amount of the obligation.
Employee benefits
Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and
salaries, annual leave, sick leave, severance pay, short term incentives and long service leave.
Liabilities arising in respect of wages and salaries, annual leave, sick leave, and any other employee benefits expected to be settled within 12 months of the
reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. All other
employee benefits or liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by the
employees up to the reporting date. In determining the present value of future cash outflows, the high-quality corporate bond rate with terms to maturity
approximating the terms of the related liability is used.
154
154
Worley Annual Report 2023
Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Overview
Context & strategy
Operating & financial review
Financial statements
11. PROVISIONS (CONTINUED)
RECONCILIATIONS
Reconciliations of each class of current and non-current provision at the beginning and end of the current and previous financial years are set out below:
EMPLOYEE
BENEFITS
PROJECT LOSSES
INSURANCE
WARRANTY
OTHER
ONEROUS
CONTRACTS
$’M
425
414
-
(20)
(368)
18
469
405
364
(13)
(9)
(328)
6
425
CONSOLIDATED
(12)
(13)
$’M
28
4
-
-
1
20
27
6
-
(2)
(5)
2
28
$’M
76
18
-
(7)
5
80
126
19
-
(32)
(34)
(3)
76
109
$’M
95
16
-
-
(6)
4
83
9
13
(9)
(6)
5
95
$’M
11
4
-
(1)
(7)
(1)
6
19
-
-
(3)
(6)
1
11
-
-
-
-
-
-
-
2
-
-
-
(1)
(1)
-
$’M
25
17
(6)
(2)
-
(2)
32
20
8
-
(2)
-
(1)
25
(12)
$’M
10
18
6
(1)
4
25
5
14
-
(7)
(4)
2
10
$’M
60
27
-
(18)
(32)
-
37
84
1
24
(22)
(25)
(2)
60
1
3
-
-
-
1
5
32
-
(24)
(7)
(1)
1
1
CONSOLIDATED
EMPLOYEE
BENEFITS
ONEROUS
CONTRACTS
$’M
WARRANTY
OTHER
$’M
Differences arising from translation of foreign operations
Differences arising from translation of foreign operations
CURRENT
Balance at 1 July 2022
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Balance at 30 June 2023
Balance at 1 July 2021
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Balance at 30 June 2022
NON-CURRENT
Balance at 1 July 2022
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Balance at 30 June 2023
Balance at 1 July 2021
Additional provisions
Transfers
Release of unused provision
Amounts utilized
Balance at 30 June 2022
Differences arising from translation of foreign operations
Differences arising from translation of foreign operations
RECOGNITION AND MEASUREMENT
estimate can be made of the amount of the obligation.
Employee benefits
Provisions are recognized when the consolidated entity has a legal, equitable or constructive obligation to make a future sacrifice of economic benefits to
other entities as a result of past transactions or other past events, it is probable that a future sacrifice of economic benefits will be required, and a reliable
Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and
salaries, annual leave, sick leave, severance pay, short term incentives and long service leave.
Liabilities arising in respect of wages and salaries, annual leave, sick leave, and any other employee benefits expected to be settled within 12 months of the
reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. All other
employee benefits or liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by the
employees up to the reporting date. In determining the present value of future cash outflows, the high-quality corporate bond rate with terms to maturity
approximating the terms of the related liability is used.
11. PROVISIONS (CONTINUED)
Insurance
Provision for insurance liabilities is recognized in line with actuarial calculations of unsettled insurance claims, net of insurance recoveries. The provision is
based on the aggregate number of individual claims incurred but not reported that are lower in value than the insurance deductible of the consolidated entity.
It is based on the estimated cost of settling claims and consideration is given to the ultimate claim size, future inflation as well as the levels of compensation
awarded through the courts.
Onerous contracts
Provisions for onerous contracts are recognized when the unavoidable costs of meeting contractual obligations exceed the economic benefits expected to be
received under it.
KEY ESTIMATES
Project losses
Where additional costs are expected to be incurred on a project but where timing and exact magnitude are uncertain, a provision is recognized using
management's best estimate based on the project circumstances. Additionally, where the outcome for a services contract is expected to result in an overall
loss over the life of the project, this loss is provided for when it first becomes known that a loss will be incurred.
Warranty
The Group provides a general warranty for rework which is accounted for in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
The provision is estimated having regard to prior warranty experience. In calculating the liability at balance date, amounts were not discounted to their
present value as the effect of discounting was not material. It is expected that these costs will be incurred within two years of balance date.
In determining the level of provision required for warranties, the Group has made judgments in respect of the expected performance and the costs of fulfilling
the warranty. Historical experience and current knowledge have been used in determining this provision.
Other provisions
Other provisions are recognized when the Group has a present obligation (legal or constructive) other than obligations described above as a result of a past
event and where it is probable that resources will be expected to settle the obligation and the amount of such obligations can be reliably estimated.
12. CAPITAL MANAGEMENT
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the
business. The Board monitors the return on equity, which the Group defines as profit after income tax expense divided by the average total shareholders’
equity, excluding non-controlling interests. The Board also determines the level of dividends to ordinary shareholders.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security
afforded by a sound capital position.
The Board monitors this through the gearing ratio (net debt/net debt plus total equity), the size of available banking facilities and the assessment
of the outlook for the Group operations. The target for the Group’s gearing ratio is between 20% and 25% (30 June 2022: 20%-30%). The gearing ratio at 30
June 2023 and 30 June 2022 was as follows:
Total interest bearing loans and borrowings excluding lease liabilities1
Add: Lease liabilities
Less: cash and cash equivalents2
Net debt
Total equity
Gearing
CONSOLIDATED
2023
$’M
2,005
261
(436)
1,830
5,601
24.6%
2022
$’M
1,914
267
(519)
1,662
5,683
22.6%
The Group’s capital management policy was updated during the financial year to manage and maintain a strong capital base in the current economic
conditions. The Group and its subsidiaries have complied with all externally imposed capital requirements.
154
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Worley Annual Report 2023
155
155
1 Excluding capitalized borrowing costs.
2 Includes procurement cash and restricted cash.
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
13. INTEREST BEARING LOANS AND BORROWINGS AND LEASE LIABILITIES
Current
Notes payable
Unsecured bank loans
Lease liabilities
Capitalized borrowing costs
Non-current
Notes payable
Unsecured bank loans
Lease liabilities
Capitalized borrowing costs
FY2023
CONSOLIDATED
2023
$’M
-
-
90
-
90
1,170
835
171
(18)
2,158
2022
$’M
296
181
90
(3)
564
758
679
177
(9)
1,605
In April 2023, the Group issued a $350 million sustainability-linked bond with a coupon of 5.95% set to mature in October 2028. The sustainability linked loan
conditions are linked to reduction in Scope 1 and 2 emissions for the Group. These loans are consistent with the Group’s ambition and proceeds will be used
for general corporate purposes and to refinance the Group's existing bank facilities. In May 2023, Worley refinanced the existing Syndicated Facility
Agreement “SFA” of US$1.2 billion (consisting of Term Loan Facility of US$400 million for 4 years and Revolving Credit Facility of US$800 million for 5 years).
The new SFA has updated terms and pricing and significantly improves the Group's debt maturity profile.
FY2022
There were no significant changes to interest bearing loans or borrowings during the year ended 30 June 2022.
RECOGNITION AND MEASUREMENT
Interest bearing loans and borrowings
Loans and borrowings are initially recognized at fair value, net of transaction costs incurred. Loans and borrowings are subsequently measured at amortized
cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the Consolidated Statement of Financial
Performance over the period of the loan using the effective interest rate method.
Lease liabilities
The Group defines a lease as a contract, or part of a contract, that conveys the right to control the use of an asset (the underlying asset) for a period of time in
exchange for consideration. At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease and non-lease component on the basis of their relative stand-alone price.
The vast majority of the Group's leases are properties, with a small portion comprised of leases of construction equipment, vehicles and IT equipment.
As a lessee, the Group uses a single model for all incoming rentals and, at lease commencement date, recognizes a RoU asset representing the Group’s right
to use the underlying leased asset and a lease liability representing its obligation to make lease payments.
At the lease commencement date, the lease liability is measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease, or, if that cannot be readily determined, the applicable incremental borrowing rate. Subsequently, the
lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications. It is remeasured when there is a change in future lease
payments arising from changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is
reasonably certain not to be exercised, and under some other special circumstances. The Group applies judgment to determine the lease term for some
leases in which it is a lessee that include renewal options.
Some property leases contain extension options or termination options exercisable by the Group before the end of the non-cancellable contract period. The
Group assesses at lease commencement date whether it is reasonably certain to exercise the extension or termination option. These are reassessed if there
is a significant event or changes in circumstance within its control.
Finance costs
Borrowing costs are recognized as expenses in the period in which they are incurred, except when they are included in the costs of qualifying assets. A
qualifying asset is defined as an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing costs include:
• interest on bank overdrafts, and short term and long term loans and borrowings;
• amortization of discounts or premiums relating to loans and borrowings and non-current payables; and
• lease liability interest.
Included in the total finance costs of $117million (2022: $64 million) disclosed in the Consolidated Statement of Financial Performance and Other
Comprehensive Income is $11 million recognized on lease liabilities (2022: $12 million).
156
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
13. INTEREST BEARING LOANS AND BORROWINGS AND LEASE LIABILITIES (CONTINUED)
TERMS AND CONDITIONS
Notes payable
Unsecured notes payable on the Group's Consolidated Statement of Financial Position as at 30 June 2023 were issued in the EURO market and in the
Australian dollar debt capital market in June 2021 and April 2023 respectively, both of which are listed on the Singapore Exchange as follows:
AMOUNT, MILLION
EURO 500
AUD 350
DATE OF ISSUE
June 2021
April 2023
DATE OF MATURITY
June 2026
October 2028
FIXED COUPON PER ANNUM
0.88%
5.95%
During the financial year, unsecured notes payable of US $205 million issued in the United States private debt capital market in September 2012 matured
and were repaid in September 2022.
Unsecured bank loans
Unsecured bank loans are floating interest rate debt facilities and are subject to negative pledge arrangements which require the Group to comply with
certain minimum financial requirements.
14. CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
The movements in financial liabilities and related financial assets are as follows:
2023
Current interest bearing loans and borrowings
Non-current interest bearing loans and borrowings
Lease liabilities
Liabilities
2022
Current interest bearing loans and borrowings
Non-current interest bearing loans and borrowings
Lease liabilities
Liabilities
AS AT
1 JULY
$'M
477
1,437
267
2,181
135
1,626
311
2,072
RECLASSIFICATION
$'M
CASH FLOWS
$'M
FOREIGN EXCHANGE
MOVEMENTS
$'M
OTHER1
$'M
-
-
-
-
293
(293)
-
-
(483)
455
(121)
(149)
48
89
(110)
27
6
113
8
127
1
15
15
31
-
-
107
107
-
-
51
51
AS AT
30 JUNE
$'M
-
2,005
261
2,266
477
1,437
267
2,181
2023
NUMBER OF SHARES
$’M NUMBER OF SHARES
$’M
2022
CONSOLIDATED
15. ISSUED CAPITAL
Ordinary shares, fully paid2
Special voting share
(A) MOVEMENTS IN SHARES
Balance at the beginning of the financial year
Ordinary shares issued on redemption of exchangeable shares
Exchangeable shares exchanged for ordinary shares
Transfer from performance rights reserve on issuance of shares
525,986,955
1
525,986,956
5,351
-
5,351
524,644,041
1
524,644,042
2023
2022
NUMBER OF SHARES
524,644,042
30,000
(30,000)
1,342,914
$’M NUMBER OF SHARES
523,079,822
80,000
(80,000)
1,564,220
5,341
1
(1)
10
Balance at the end of the financial year
525,986,956
5,351
524,644,042
5,341
-
5,341
$’M
5,321
2
(2)
20
5,341
1 Represents new leases entered, interest expense not yet paid net of changes in lease term on termination options reasonably certain to be exercised.
2 Included in ordinary shares are 896,193 (2022: 926,193) exchangeable shares. The issuance of the exchangeable shares and the attached special voting share replicate the
economic effect of issuing ordinary shares in the Company. Accordingly, for accounting purposes, exchangeable shares are treated in the same single class of issued capital as
ordinary shares. In addition, the Australian Securities Exchange (ASX) treats these exchangeable shares to have been converted into ordinary shares of the Company at the time of
their issue for the purposes of the ASX Listing Rules. Ordinary shares have no par value and the Company does not have a limited amount of authorized capital. The Worley
Limited Plans Trust holds nil (30 June 2022: nil) shares in the Company, which have been consolidated and eliminated in accordance with the accounting standards.
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Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
15. ISSUED CAPITAL (CONTINUED)
RECOGNITION AND MEASUREMENT
Issued and paid up capital is recognized at the fair value of the consideration received by the Group. Any transaction costs arising on the issue of ordinary
shares are recognized directly in equity as a reduction of the share proceeds received.
(B) TERMS AND CONDITIONS OF ISSUED CAPITAL
Ordinary shares
Ordinary shares have the right to receive dividends as declared and, in the event of the winding up of the Company, to participate in the proceeds from the
sale of all surplus assets in proportion to the number of, and amounts paid up on, shares held. Ordinary shares entitle their holder to one vote, either in
person or by proxy, at a meeting of the Company.
Exchangeable shares
The exchangeable shares were issued by Worley Canada SPV Limited as part of the consideration for the acquisition of the Colt Group. Exchangeable shares
may be exchanged into ordinary shares of the Company on a one for one basis (subject to adjustments) at any time by the exchangeable shareholders.
Exchangeable shares have the right to receive the same cash dividends or cash distributions as declared on the ordinary shares into which they are
convertible. In the event of the winding up of the Company, the exchangeable shares would convert to ordinary shares, which would participate in the
proceeds from the sale of all surplus assets pro-rata with other ordinary shares.
The exchangeable shares, through a voting trust which holds a special voting share in the Company, entitle their holders to vote at the Company’s general
meetings as though they hold ordinary shares. During the financial year ended 30 June 2023, 30,000 were exchanged (2022: 80,000).
Special voting share
The special voting share was issued to Computershare Trust Company of Canada Limited (Trustee) as part of the consideration for the acquisition of the Colt
Group. The special voting share does not have the right to receive dividends as declared, and in the event of the winding up of the Company is unable to
participate in the proceeds from the sale of all surplus assets. The special voting share has a right to vote together as one class of share with the holders of
ordinary shares in the circumstances in which shareholders have a right to vote, subject to the Company’s Constitution and applicable law. The Trustee must
vote in the manner instructed by an exchangeable shareholder in respect of the number of votes that would attach to the ordinary shares to be received by
that exchangeable shareholder on exchange of its exchangeable shares. The special voting share has an aggregate number of votes equal to the number of
votes attached to ordinary shares into which the exchangeable shares are retracted or redeemed.
(C) PERFORMANCE RIGHTS
The policy in respect of performance rights is outlined in note 5.
Balance at the beginning of the financial year
Rights granted
Rights exercised
Rights lapsed or expired
Balance at the end of the financial year
Exercisable at the end of the financial year
Weighted average exercise price
NUMBER OF
PERFORMANCE RIGHTS
2023
2022
6,488,807
3,240,634
(1,342,914)
(1,300,868)
6,386,386
3,221,379
(1,564,220)
(1,554,738)
7,085,659
6,488,807
nil
$nil
nil
$nil
517,876 performance rights, vesting on 30 Sep 2023 and expiring on 31 Oct 2026
111,149 performance rights, vesting on 30 Sep 2023 and expiring on 31 Oct 2027
1,556,049 performance rights, vesting on 30 Sep 2023 and expiring on 31 Oct 2028
Performance rights
The outstanding balance as at 30 June 2023 is represented by:
•
•
•
•
•
•
•
•
•
•
1,551,697 performance rights, vesting on 30 Sep 2024 and expiring on 31 Oct 2029
644,447 performance rights, vesting on 30 Sep 2025 and expiring on 31 Oct 2028
673,795 performance rights, vesting on 30 Sep 2025 and expiring on 31 Oct 2029
827,901 performance rights, vesting on 30 Sep 2026 and expiring on 29 Oct 2029
67,789 performance rights, vesting on 30 Sep 2023 and expiring on 31 Oct 2029
494,028 performance rights, vesting on 30 Sep 2024 and expiring on 31 Oct 2027
640,927 performance rights, vesting on 30 Sep 2024 and expiring on 31 Oct 2028
158
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
15. ISSUED CAPITAL (CONTINUED)
Weighted average remaining contractual life
The weighted average remaining life for the rights outstanding as at 30 June 2023 is 1.4 years (2022: 1.4 years).
Weighted average fair value
The weighted average fair value of rights granted during the financial year was $12.66 (2022: $9.42).
KEY ESTIMATES
Pricing model
The following table lists the inputs to the models used for the financial years ended 30 June 2023 and 30 June 2022:
Dividend yield (%)
Expected volatility (%)1
Risk-free interest rate (%)
Expected life of rights (years)
Rights exercise price ($)
Weighted average share price at measurement date ($)
16. RESERVES
Foreign currency translation reserve
Hedge reserve
Performance rights reserve
Defined benefits reserve
Acquisition reserve
PERFORMANCE RIGHTS
PLAN TSR, EPS AND SPPR
2023
2022
3.03-3.50
35.0
3.11-3.34
1-4
nil
14.27-16.45
4.79-5.06
42.5
0.00-0.79
2-4
nil
10.82
CONSOLIDATED
2023
$’M
(157)
(1)
68
3
(72)
(159)
2022
$’M
(301)
(3)
60
14
(72)
(302)
(A) FOREIGN CURRENCY TRANSLATION RESERVE
The foreign currency translation reserve is used to record foreign exchange differences arising from the translation of the financial statements of foreign
controlled entities and associates, and the net investments hedged in their entities.
(B) HEDGE RESERVE
The hedge reserve is used to record gains or losses on hedging instruments used in the cash flow hedges that are recognized directly in equity. Amounts are
recognized in the Consolidated Statement of Financial Performance when the associated hedged transaction affects the profit and loss.
No amount was recognized in the Consolidated Statement of Financial Performance in relation to hedge ineffectiveness for the year ended 30 June 2023
(2022: nil).
RECOGNITION AND MEASUREMENT
Specific hedges
Hedging is undertaken to avoid or minimize potential adverse financial effects of movements in foreign currency exchange rates. Gains or losses arising upon
entry into a hedging transaction intended to hedge the purchase or sale of goods or services, together with subsequent foreign exchange gains or losses
resulting from those transactions, are deferred up to the date of the purchase or sale and included in the measurement of the purchase or sale.
Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned
nor likely in the foreseeable future, are considered to form part of a net investment in a foreign operation and are recognized directly in equity in the foreign
currency translation reserve.
At each balance date, the Group measures the effectiveness of its cash flow hedges. The effective portion of the gain or loss on the hedging instrument is
recognized directly in equity, while the ineffective portion is recognized in the profit and loss. The following effectiveness criteria are applied:
• An economic relationship exists between the hedged item and hedging instrument;
• The effect of credit risk does not dominate the fair value changes; and
• The hedge ratio applied for hedge accounting purposes should be the same as the hedge ratio used for risk management purposes.
1 The expected volatility was determined based on the historical share price volatility of the Company. The resulting expected volatility therefore reflects the assumption that the
historical volatility is indicative of future trends, which may not necessarily be the actual outcome.
Worley Annual Report 2023
159
159
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
16. RESERVES (CONTINUED)
(C) PERFORMANCE RIGHTS RESERVE
The performance rights reserve is used to recognize the fair value of performance rights issued but not vested.
(D) DEFINED BENEFITS RESERVE
The defined benefits reserve is used for remeasurements of the net defined benefit liability, which comprise actual gains and losses, the return on plan
assets (if applicable) and any asset ceilings where applicable.
(E) ACQUISITION RESERVE
The acquisition reserve is used to record differences between the carrying value of non-controlling interests before acquisition and the consideration paid
upon acquisition of an additional shareholding, where the transaction does not result in a loss of control.
17. EARNINGS PER SHARE
ATTRIBUTABLE TO MEMBERS OF WORLEY LIMITED
Basic earnings per share
Diluted earnings per share
The following reflects the income and security data used in the calculation of basic and diluted earnings per share:
(A) RECONCILIATION OF EARNINGS USED IN CALCULATING EARNINGS PER SHARE
Earnings used in calculating basic and diluted earnings per share
(B) WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR
Weighted average number of ordinary securities used in calculating basic earnings per share
Performance rights which are considered potentially dilutive
Adjusted weighted average number of ordinary securities used in calculating diluted earnings per share
CONSOLIDATED
2023
CENTS
2022
CENTS
7.0
7.0
$’M
37
32.8
32.6
$’M
172
Number
525,629,010
3,974,306
Number
524,248,439
2,819,755
529,603,316
527,068,194
Within the total number of performance rights which are considered dilutive, the weighted average number of converted, lapsed, or cancelled potential
ordinary shares used in calculating diluted earnings per share was 332,557 (2022: 85,491).
MEASUREMENT
Basic earnings per share
Basic earnings per share is determined by dividing the profit attributable to members of Worley Limited by the weighted average number of ordinary shares
outstanding during the financial year.
Diluted earnings per share
Diluted earnings per share is calculated as profit attributable to members of Worley Limited adjusted for:
• costs of servicing equity (other than dividends);
• the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognized as expenses; and
• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares, divided by the
weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
160
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
18. DIVIDENDS
(A) FINAL DIVIDEND PROPOSED
Dividend in respect of the six months to 30 June 2023:
25.0 cents per share
Dividend in respect of the six months to 30 June 2022:
25.0 cents per share
CONSOLIDATED
2023
$’M
2022
$’M
131
-
-
131
The directors have resolved to pay a final dividend of 25.0 cents per fully paid ordinary share, including exchangeable shares, unfranked (2022: 25.0 cents per
share). The Company will make total dividend payments of 50.0 cents per share for the financial year ended 30 June 2023 (2022: 50.0 cents per share).
The final dividend will be paid on 27 September 2023 for shareholders on the register at the record date, being 30 August 2023.
In accordance with AASB 110 Events after the Reporting Period, the aggregate amount of the proposed final dividend of $ 131 million is not recognized as a
liability as at 30 June 2023.
(B) DIVIDENDS PAID DURING THE FINANCIAL YEAR
25.0 cents per share (unfranked) dividend in respect of the six months to 31 December 2022
25.0 cents per share (unfranked) dividend in respect of the six months to 30 June 2022
25.0 cents per share (unfranked) dividend in respect of the six months to 31 December 2021
25.0 cents per share (unfranked) dividend in respect of the six months to 30 June 2021
131
131
n/a
n/a
262
n/a
n/a
131
131
262
Worley Annual Report 2023
161
161
Worley Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Notes to and forming part of the consolidated financial statements
19. FINANCIAL RISK MANAGEMENT
(A) OVERVIEW
The Group’s principal financial instruments comprise receivables, payables, bank loans and overdrafts, lease liabilities, cash and short term deposits and
derivatives. The Group has exposure to the following risks from its use of financial instruments:
• credit risk;
• liquidity risk; and
• market risk.
This note presents information about the Group’s exposure to each of the above risks, its objectives, policies and processes for measuring and managing risk,
and the management of capital. Quantitative disclosures are included throughout this financial report.
The Board has overall responsibility for the establishment and oversight of the risk management framework. The Audit and Risk Committee assists the
Board in overseeing the integrity of the Group’s financial reporting risk management framework and internal controls. The Committee is assisted in its
oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which
are reported to the Committee.
Risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks
and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The
Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their roles and obligations.
(B) CREDIT RISK
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The financial
assets of the Group comprise cash and cash equivalents, trade and other receivables, derivative financial instruments and guarantees and letters of credit
which are presented as contingent liabilities in note 25(A). The Group’s maximum exposure to credit risk is equal to the carrying amount of these instruments.
Exposure at balance date is addressed in each applicable note. Credit exposure includes derivative instruments in an asset position at balance date.
Trade and other receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The profiles of the Group’s customer base,
including the default risk of the industry and country in which customers operate, have less of an influence on credit risk. Geographically and on a customer
basis, there is no concentration of credit risk.
The Group has a credit policy under which each new customer is analyzed for creditworthiness before the Group’s standard payment and delivery terms and
conditions are offered. The Group’s review includes external ratings, when available, and in some cases bank references.
The Group has established an allowance for expected credit losses that represents its estimate of expected credit losses in respect of trade and other
receivables.
Guarantees
Details of outstanding guarantees are provided in note 25(A). The Group is, in the normal course of business, required to provide guarantees and letters of
credit on behalf of controlled entities, associates and related parties in respect of their contractual performance related obligations.
Maximum credit exposure
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure to credit risk at the reporting
date was:
Cash and cash equivalents
Trade receivables, unbilled contract revenue and retentions, net of ECL allowance
Other receivables
Amounts receivable from associates and related parties
Derivatives
CARRYING AMOUNT
CONSOLIDATED
2023
$’M
436
2,274
247
54
7
3,018
2022
$’M
519
2,232
143
37
3
2,934
162
162
Worley Annual Report 2023
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
The ageing of the Group’s trade receivables, unbilled contract revenue and retentions at the reporting date was:
0-60 days
61-120 days
Gross aged receivables 0-120 days
Gross receivables more than 121 days
Total
GROSS
2023
$’M
1,886
105
1,991
335
2,326
ECL ALLOWANCE
2023
$'M
-
-
(10)
(42)
(52)
GROSS
2022
$’M
1,879
95
1,974
338
2,312
ECL ALLOWANCE
2022
$'M
-
-
(10)
(70)
(80)
The Group applies the simplified approach in calculating Expected Credit Losses (ECLs). Therefore, the Group does not track changes in credit risk, but instead
recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit
loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
The allowance amounts are used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible; at that point,
the amount is considered irrecoverable and is written off against the financial asset directly.
(C) LIQUIDITY RISK
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Group’s reputation.
The Group ensures that it has sufficient cash on demand to meet expected operational expenses including the servicing of financial obligations; this excludes
the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
The Group has unrestricted access at balance date to the following lines of credit:
UNSECURED FACILITIES
Total facilities available:
Loan facilities
Overdraft facilities
Lease liabilities
Bank guarantees and letters of credit
Facilities utilized at balance date:
Loan facilities1
Lease liabilities
Bank guarantees and letters of credit
Facilities available at balance date:
Loan facilities
Overdraft facilities
Bank guarantees and letters of credit
The maturity profile in respect of the Group's total unsecured loan, overdraft facilities and lease liabilities is set out below:
Within one year
Between one and four years
After four years
CONSOLIDATED
2023
$’M
2022
$’M
3,342
170
261
1,894
5,667
2,005
261
1,198
3,464
1,337
170
696
2,203
283
1,923
1567
3,773
2,730
126
267
1,923
5,046
1,914
267
1,150
3,331
816
126
773
1,715
809
2,289
25
3,123
1 Excludes capitalized borrowing costs.
Worley Annual Report 2023
163
163
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period from balance date to the contractual
maturity date. As the amounts disclosed in the table are the contractual undiscounted cash flows, their balances will not necessarily agree with the amounts
disclosed in the Consolidated Statement of Financial Position.
As at 30 June 2023
Due within one year
Due between one and four years
Due after four years
As at 30 June 2022
Due within one year
Due between one and four years
Due after four years
TRADE AND OTHER
PAYABLES
$’M
AMOUNTS PAYABLE
TO ASSOCIATES AND
RELATED PARTIES
$’M
CONSOLIDATED
INTEREST BEARING
LOANS AND
BORROWINGS AND
LEASE LIABILITIES
$’M
EXPECTED
FUTURE
INTEREST PAYMENTS
$’M
DERIVATIVES
$’M
1,076
50
-
1,126
928
53
-
981
-
-
-
-
4
-
-
4
100
1,618
569
2,287
577
1,601
26
2,204
88
137
29
254
35
38
1
74
13
-
-
13
32
-
-
32
TOTAL
FINANCIAL
LIABILITIES
$’M
1,277
1,805
598
3,680
1,576
1,692
27
3,295
(D) MARKET RISK
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Group’s income or the
value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return. The Group enters into derivatives, and also incurs financial liabilities, in order to manage market risk. Generally, the
Group seeks to apply hedge accounting in order to reduce volatility in the profit and loss.
(i) Currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies
of Group entities. In the ordinary course of business, the Group structures its contracts to be in the functional currency of the country where the work is
performed and costs incurred.
The Group uses forward exchange contracts and foreign currency options to hedge its currency risk, most with a maturity of less than one year from the
reporting date. When necessary, forward exchange contracts are rolled over at maturity.
Interest on loans and borrowings is denominated in currencies that match the cash flows generated by the underlying operations for the Group resulting in
an economic hedge. Interest is primarily AUD, CAD, EURO, GBP and USD denominated.
A number of the Group controlled entities have a functional currency other than AUD. The exchange gains or losses on the net equity investment of foreign
operations are reflected in the foreign currency translation reserve within the equity attributable to members of Worley Limited. Currency exposure arising
from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.
164
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
(1) FORWARD EXCHANGE CONTRACTS1
The Group is exposed to foreign exchange rate transaction risk on foreign currency sales and purchases, and loans to and from related entities. The most
significant foreign exchange risk is USD receipts by Australian and other non-US entities. When required, hedging is undertaken through transactions entered
into in the foreign exchange markets. Forward exchange contracts have been used for hedging purposes and are generally accounted for as cash flow
hedges.
At balance date, the details of significant outstanding contracts were:
Maturing in the next 6 months from the reporting date
BUY AUD and Sell USD
Buy AUD and Sell CAD
Buy CAD and Sell AUD
Buy CAD and Sell USD
Buy NOK and Sell USD
Buy NOK and Sell AUD
Buy EUR and Sell USD
Buy GBP and Sell AUD
Buy GBP and Sell USD
Maturing in the next 6-12 months from the reporting date
Buy CAD and Sell USD
Maturing in the next 12-18 months from the reporting date
Buy USD and Sell CAD
WEIGHTED AVERAGE
EXCHANGE RATE
AMOUNT
RECEIVABLE/(PAYABLE)
AMOUNT
RECEIVABLE/(PAYABLE)
2023
2022
2023
$’M
2022
$’M
2023
$’M
2022
$’M
0.67
-
0.90
1.34
10.26
6.91
0.96
-
0.83
1.34
1.00
0.73
0.92
-
-
8.93
6.48
0.89
0.54
0.75
AUD 163
-
CAD 12
CAD 32
NOK 1,105
NOK 200
EUR 26
-
GBP 18
AUD 11
AUD 25
-
-
NOK 1,070
NOK 260
EUR 35
GBP 12
GBP 6
AUD (110)
-
AU (14)
USD (24)
USD (106)
AUD (28)
USD (29)
-
USD (21)
- CAD 35
- USD (26)
-
USD 8
-
CAD (11)
USD (7)
CAD (23)
USD (116)
AUD(40)
USD (41)
AUD (22)
USD (7)
-
-
As these contracts are hedging anticipated future receipts and sales, to the extent that they satisfy hedge accounting criteria, any unrealized gains and losses
on the contracts, together with the cost of the contracts, are deferred and will be recognized in the measurement of the underlying transaction provided the
underlying transaction is still expected to occur as originally designated. Included in the amounts deferred are any gains and losses on hedging contracts
terminated prior to maturity where the related hedged transaction is still expected to occur as designated.
The timescale (future cash flow timings) of the foreign exchange forward contracts is in line with future detailed forecast cash flows in foreign currencies.
Start dates and completion dates are tracked and the transactions are based on won projects and are highly probably to occur, resulting in immaterial
ineffectiveness. The change in fair values between the hedging instrument and item are materially the same, with the proportion of the risk that is hedged
being at or near 100%.
The gains and losses deferred in the Consolidated Statement of Financial Position were as follows:
Effective hedge – unrealized gains
Effective hedge – unrealized losses
Net unrealized gains/(losses)
CONSOLIDATED
2023
$’M
2
-
2
2022
$’M
3
(8)
(5)
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Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
19. FINANCIAL RISK MANAGEMENT (CONTINUED)
(2) FOREIGN CURRENCY RISK EXPOSURE
The Group’s year end Consolidated Statement of Financial Position exposure to foreign currency risk was as follows, based on notional amounts. The
following are financial assets and liabilities (unhedged amounts) in currencies other than the functional currencies of the entity in which they are recorded:
As at 30 June 2023
Cash and cash equivalents
Trade receivables
Trade payables
As at 30 June 2022
Cash and cash equivalents
Trade receivables
Trade payables
CAD
$’M
-
-
2
2
25
-
-
25
CONSOLIDATED
GBP
$’M
4
1
(1)
4
5
-
(2)
3
USD
$’M
61
42
(15)
88
79
43
(38)
84
EUR
$’M
7
22
(18)
11
4
6
(9)
1
OTHER1
$’M
26
13
(7)
32
37
6
(4)
39
(3) CURRENCY SENSITIVITY ANALYSIS
A 10% weakening of the Australian dollar against the following currencies at 30 June 2023 in relation to the preceding foreign currency exposures would have
increased equity and profit by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
CONSOLIDATED
2023
2022
EFFECTS IN MILLIONS OF AUD
EQUITY
PROFIT
EQUITY
PROFIT
CAD
GBP
USD
EUR
Other
-
-
-
-
-
-
1
10
1
2
-
-
-
-
-
2
-
9
-
3
A 10% strengthening of the Australian dollar against the above currencies at 30 June 2023 would have had the equal but opposite effect on the above
currencies to the amounts shown above, on the basis that all other variables remain constant.
The following significant exchange rates against the AUD applied during the financial year:
AVERAGE
EXCHANGE RATE
REPORTING DATE
SPOT EXCHANGE RATE
2023
0.9014
0.5598
0.6438
0.6736
2022
0.9183
0.5449
0.7256
0.6436
2023
0.8764
0.5245
0.6615
0.6087
2022
0.8909
0.5686
0.6919
0.6600
CAD
GBP
USD
EUR
1Individually immaterial, denominated in AUD
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19. FINANCIAL RISK MANAGEMENT (CONTINUED)
(ii) Interest rate risk
Interest rate risk is the risk that changes in interest rates will affect the Group’s income or the value of its holdings of financial instruments.
(1) INTEREST RATE RISK EXPOSURES
The Group’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods are set out in the following table:
WEIGHTED
AVERAGE
INTEREST
RATE
% PA
FLOATING
INTEREST
RATE
$'M
1 YEAR
OR LESS
$'M
1 TO
2 YEARS
$'M
2 TO
3 YEARS
$'M
3 TO
4 YEARS
$'M
4 TO
5 YEARS
$'M
MORE THAN
5 YEARS
$'M
NON-INTEREST
BEARING
$'M
TOTAL
$'M
As at 30 June 2023
Cash and cash equivalents
Bank loans 1
Notes payable
Lease liabilities
As at 30 June 2022
Cash and cash equivalents
Bank loans21
Notes payable
Lease liabilities
5.9
5.9
2.4
4.5
2.9
3.1
1.8
4.3
436
-
-
-
519
-
-
-
-
-
-
90
-
181
296
90
-
30
-
72
-
679
-
69
-
-
821
48
-
-
-
49
-
605
-
31
-
-
758
34
-
200
-
11
-
-
-
21
-
-
349
9
-
-
-
4
-
-
-
-
-
-
-
-
436
835
1,170
261
519
860
1,054
267
Only bank loans in the table above are at floating interest rates with the effect of changes in interest rates of 1% changing the total interest expense of 3%.
Notes payable are at fixed interest rates. Lease liabilities are recognized at the incremental borrowing rates at inception of the lease that do not change
unless there are certain modifications or remeasurements to the lease.
1 Excludes capitalized borrowing costs.
Worley Annual Report 2023
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Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
20. FAIR VALUES
DETERMINATION OF FAIR VALUES
The Group’s accounting policies and disclosures require the determination of fair value for both financial and non-financial assets and liabilities. Fair values
have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the
assumptions used in determining fair values is disclosed in the notes specific to that asset or liability.
Derivatives
The fair value of forward exchange contracts is estimated by discounting the difference between the contractual forward price for the residual maturity of the
contract using a risk-free interest rate (based on government bonds). The fair value of interest rate swaps is based on broker quotes. Those quotes are tested
for reasonableness by discounting estimated cash flows based on the terms and maturity of each contract and using market interest rates for similar
instruments at the measurement date.
Non-derivative financial liabilities
Fair value which is determined for disclosure purposes is the price that would be paid to transfer a liability in an orderly transaction between market
participants at the measurement date. For finance leases, the market rate of interest is determined by reference to similar lease agreements.
FAIR VALUES COMPARED TO CARRYING AMOUNTS
The fair values of financial assets and liabilities approximate their carrying values with the exception of interest-bearing loans and borrowings and lease
liabilities which have a fair value of $2,217 million (2022: $2,145 million) and a carrying value of $2,249 million (2022: $2,169 million).
The Group uses the following hierarchy for determining the fair value of a financial asset or liability:
• Level 1 – the fair value is calculated using quoted prices in active markets.
• Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices). The Group's interest bearing loans and borrowings and derivative instruments including forward exchange
contracts fall within Level 2 of the hierarchy.
• Level 3 - if one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3. This is the case for unlisted
equity instruments.
Derivative instruments including forward exchange contracts are stated at fair values at each reporting date based on market observable inputs such as
foreign exchange spot and forward rates, interest rate curves and forward rate curves.
Fair values of the Group’s interest bearing loans and borrowings are determined by discounting future cash flows using period-end borrowing rates on loans
and borrowings with similar terms and maturity.
There were no transfers between Level 1, 2 and 3 for the periods presented in this report.
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21. INVESTMENTS IN CONTROLLED ENTITIES
ENTITY
(A) SIGNIFICANT ENTITIES
Worley Services Pty Limited
Worley Canada Services Ltd
Worley Cord Limited
Worley Group Inc
Rosenberg Worley AS
Worley Field Services Incorporated
BENEFICIAL
INTEREST HELD BY
CONSOLIDATED
ENTITY
2023
%
100
100
100
100
100
100
2022
%
100
100
100
100
100
100
COUNTRY OF INCORPORATION
Australia
Canada
Canada
USA
Norway
USA
In accordance with accounting standards, the Group discloses only significant entities identified on the basis of materiality.
(B) ACQUISITION OF CONTROLLED ENTITIES
FY2023
On 11 May 2023 the final payment of $24m was paid for shares purchased in 2022 for Jacobs Zamil and Turbag Consulting Engineers Company and Jacobs
DSCA Saudi Arabia Co Ltd
FY2022
On 9 May 2022, the Group increased its share in Jacobs Zamil and Turbag Consulting Engineers Company to 100% for cash consideration of $26 million, of
which $13 million was paid at 30 June 2022. On the same date, the Group increased its share in Jacobs DCSA Saudi Arabia Co Ltd to 100% for cash
consideration of $19 million, of which $10 million was paid at 30 June 2022.
Worley Annual Report 2023
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Worley Annual Report 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
21. INVESTMENTS IN CONTROLLED ENTITIES (CONTINUED)
(C) DISPOSAL OF CONTROLLED ENTITIES
FY2023
On 26 May 2023, Worley completed the sale of the North American Maintenance, Turnaround and Power Operations & Maintenance business. A loss on sale
and related expenses of $240 million was recognized within the loss on sale of disposal group and related expenses line of the Consolidated Statement of
Financial Performance and treated as an exclusion from underlying earnings.
ASSETS
Trade Receivables
Unbilled contract revenue
Cash
Total Assets
LIABILITIES
Trade and other payables
Total Liabilities
Net assets disposed
Sales proceeds1
Carrying value of net assets disposed
Surplus of the disposal group, excluding selling costs and related expenses
Selling costs and other related expenses
Total deficit of the disposal group, net of selling costs and related expenses
ALLOCATION OF INTANGIBLES TO DISPOSAL GROUP
Goodwill allocated
Customer contracts and relationship intangibles allocated
Foreign translation reversed to the statement of profit and loss
Loss on sale of disposal group and related expenses
2023
$'M
144
75
9
228
(11)
(11)
217
239
(217)
22
(45)
(23)
(184)
(47)
14
(240)
As part of its ongoing portfolio management, subsequent to the year ended 30 June 2023, Worley has entered into an agreement to sell Energy Resourcing
Group, another of its remaining non-core businesses. This transaction is subject to regulatory approval, customary closure conditions and Worley completing
the separation of this business. The transaction is expected to close within first half FY2024. The sale is not expected to have a significant impact on
Worley’s financial results.
FY2022
No significant disposals of controlled entities have occurred during FY2022.
(D) WITHDRAWAL FROM RUSSIA
As announced on 10 March 2022 to the ASX, Worley is continuing to safely withdraw its services provided in and into Russia and will not enter into new
contracts.
At 30 June 2023, the net assets of Russian entities is $23 million (2022: $17 million), $4 million (2022: $16 million) of which is cash in bank. This cash is
classified as restricted cash (refer to note 7) due to the sanctions imposed by the Russian Federation on certain countries which include Australia. We are
continuing to take all necessary steps to ensure the Group recovers the remaining investments in Russia.
1 As of 30 June 2023, $172m of the total sales proceeds of $239 million was received, the remaining funds to be received during FY2024.
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Financial statements
21. INVESTMENTS IN CONTROLLED ENTITIES (CONTINUED)
RECOGNITION AND MEASUREMENT
Controlled entities
Where control of an entity is obtained during a financial year, its results are included in the Consolidated Statement of Financial Performance and Other
Comprehensive Income from the date on which control commences. Where control of an entity ceases during a financial year, its results are included for that
part of the year during which control existed.
A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.
Acquisition of assets and business combinations
The acquisition method of accounting is used to account for all business combinations regardless of whether equity instruments or other assets are acquired.
Cost is measured as the fair value of the assets given up, shares issued or liabilities undertaken or assumed at the date of acquisition. Transaction costs
directly attributable to the acquisition are expensed as incurred. Where equity instruments are issued in a business combination, the value of the instruments
is their market price as determined by market valuation at the acquisition date. Transaction costs arising on the issue of equity instruments are recognized
directly in equity.
If the business combination is achieved in stages, the acquisition date fair value of the Group’s previously held equity interest in the acquiree is remeasured to
fair value at the acquisition date through the profit and loss.
Except for non-current assets or disposal groups classified as held for sale (which are measured at fair value less costs to sell), all identifiable assets acquired
and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the
extent of any non-controlling interest. The excess of the cost of the business combination over the net fair value of the Group’s share of the identifiable net
assets acquired is recognized as goodwill. If the cost of acquisition is less than the Group’s share of the net fair value of the identifiable net assets of the
subsidiary, the difference is recognized as a gain in the Consolidated Statement of Financial Performance and Other Comprehensive Income but only after a
reassessment of the identification and measurement of the net assets acquired.
Where settlement of any part of the consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of
exchange. The discount rate used is the Group’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
22. EQUITY ACCOUNTED ASSOCIATES
(A) DETAILS OF EQUITY ACCOUNTED ASSOCIATES
The Group’s largest equity accounted investments are listed below.
OWNERSHIP INTEREST
CONSOLIDATED
CARRYING AMOUNT
CONSOLIDATED
ENTITY
Significant investments
Jacobs Engineering SA Joint Ventures
Ranhill WorleyParsons Sdn Bhd
Other investments
PRINCIPAL
PLACE OF
BUSINESS
PRINCIPAL ACTIVITY
Morocco
Malaysia
Chemicals
Energy
2023
%
50
49
2022
%
50
49
(B) CARRYING AMOUNT OF EQUITY ACCOUNTED ASSOCIATES
Balance at the beginning of the financial year
Share of net profit of investments accounted for using the equity method, excluding impairments
Dividends declared by equity accounted associates
Change in nature of investment and investment acquired
Movement in foreign currency translation reserve of equity accounted associates
Balance at the end of the financial year
2023
$’M
145
14
37
196
CONSOLIDATED
2023
$’M
189
23
(26)
5
5
196
2022
$’M
127
12
50
189
2022
$’M
172
8
(1)
16
(6)
189
Worley Annual Report 2023
171
171
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
22. EQUITY ACCOUNTED ASSOCIATES (CONTINUED)
(C) REVENUE ATTRIBUTABLE TO EQUITY ACCOUNTED ASSOCIATES
Share of revenue from equity accounted associates1
(D) RESERVES ATTRIBUTABLE TO EQUITY ACCOUNTED ASSOCIATES
FOREIGN CURRENCY TRANSLATION RESERVE
Balance at the beginning of the financial year
Movement in reserve
Balance at the end of the financial year
(E) RETAINED PROFITS ATTRIBUTABLE TO EQUITY ACCOUNTED ASSOCIATES
Balance at the beginning of the financial year
Share of net profits of investments accounted for using the equity method
Dividends declared by equity accounted associates
Balance at the end of the financial year
(F) SHARE OF EQUITY ACCOUNTED ASSOCIATES’ CONTINGENT LIABILITIES
Performance related guarantees issued
(G) SHARE OF EQUITY ACCOUNTED ASSOCIATES’ EXPENDITURE COMMITMENTS
Expenditure commitments
(H) SUMMARY OF FINANCIAL POSITION OF EQUITY ACCOUNTED ASSOCIATES
The consolidated entity’s share of aggregate assets and liabilities of equity accounted associates is as follows:
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Balance at the end of the financial year
CONSOLIDATED
2023
$’M
2022
$’M
794
310
(22)
5
(17)
58
23
(26)
55
4
-
513
70
(390)
3
196
196
(16)
(6)
(22)
51
8
(1)
58
4
-
409
70
(290)
-
189
189
RECOGNITION AND MEASUREMENT
Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting. Under this method, the
consolidated entity’s share of the post-acquisition profits or losses after tax of associates is recognized in the Consolidated Statement of Financial
Performance and Other Comprehensive Income, and its share of post-acquisition movements in reserves is recognized in consolidated reserves. The
cumulative post-acquisition movements are adjusted against the cost of the investment. Associates are those entities over which the consolidated entity
exercises significant influence, but not control. Joint arrangements are those entities over which joint control is present with at least one other party. Joint
ventures are joint arrangements where the Group is only exposed to the net assets of the investee.
1 Revenue as defined in note 3, Operating Segments.
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Operating & financial review
Financial statements
23. INTERESTS IN JOINT OPERATIONS
The Group’s largest joint operation is listed below. It is not individually material to the Group.
JOINT OPERATION
GW Integrated Solutions JV
PRINCIPAL ACTIVITY
Energy
OWNERSHIP INTEREST
CONSOLIDATED
2023
%
50
2022
%
50
The consolidated entity’s interests in the assets and liabilities employed in all joint operations are included in the Consolidated Statement of Financial
Position under the following classifications:
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Total current liabilities
TOTAL LIABILITIES
NET ASSETS
CONSOLIDATED
2023
$’M
2022
$’M
16
27
43
43
32
32
32
11
10
46
56
56
47
47
47
9
RECOGNITION AND MEASUREMENT
The Group recognizes its proportionate interest in the assets, liabilities, revenues and expenses of any joint operations. These balances are incorporated in
the consolidated financial statements under the appropriate headings.
24. COMMITMENTS FOR EXPENDITURE
(A) CAPITAL EXPENDITURE COMMITMENTS
Commitments for the minimum amount payable for the acquisition of intangible assets or property, plant and equipment are payable as follows:
Within one year
Later than one year and not later than five years
Commitments not recognized in the financial statements
CONSOLIDATED
2023
$’M
20
-
20
(B) OPERATING EXPENDITURE COMMITMENTS AND LEASE COMMITMENTS
Estimated commitments for operating expenditure (primarily in relation to software and information technology) and lease commitments are payable as
follows:
Within one year
Later than one year and not later than five years
Commitments not recognized in the financial statements
85
114
199
2022
$’M
37
31
68
45
43
88
Worley Annual Report 2023
173
173
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
25. CONTINGENT LIABILITIES
The Company and some of its subsidiaries have commitments and contingencies arising in the ordinary course of business. These includes performance
guarantees and letters of credit in respect of contractual performance obligations, litigations and claims in relation to projects, taxation and environmental
matters. These types of matters could result in various forms of cash outflows, including compensation for damages, cost reimbursements, taxation
expense, fines, penalties, and other forms of cash outflows. The directors consider that it is not probable that the outcome of any individual matter, including
the items listed below, will have a material adverse effect on the net earnings or cash flows in any particular reporting period. In performing this assessment,
the directors considered the nature of existing litigations or claims, the progress of matters, existing law and precedent, the opinions and views of legal
counsel and other advisors, the Group’s experience in similar cases (where applicable), the experience of other companies, and other facts available to the
Group at the time of assessment. The director’s assessment of these factors may change over time as individual litigations or claims progress.
Where it is considered that disclosure could prejudice the Group's position in a dispute, as per the accounting standards only the general nature of the dispute
has been disclosed below.
The Company has regular reviews of its litigations, claims and other contingent matters, including updates from corporate and outside legal counsel, to
assess the need for accounting recognition or disclosure of these contingencies. The directors are currently of the view that the Group has adequately
considered these matters for recognition in accordance with the Group’s accounting policy.
Other than specifically mentioned, none of the financial implications of the matters mentioned below have been provided for in the financial statements.
KEY ESTIMATES
In performing this assessment, the directors considered the nature of existing litigations or claims, the progress of matters, existing law and precedent, the
opinions and views of legal counsel and other advisors, the Group’s experience in similar cases (where applicable), the experience of other companies, and
other facts available to the Group at the time of assessment. The director’s assessment of these factors may change over time as individual litigations or
claims progress.
Where it is considered, disclosure could prejudice the Group's position in a dispute, as per the accounting standards only the general nature of the dispute has
been disclosed below.
(A) GUARANTEES
The Company is, in the normal course of business, required to provide guarantees and letters of credit on behalf of controlled entities, associates and related
parties in respect of their contractual performance related obligations.
These guarantees and letters of credit only give rise to a liability where the entity concerned fails to perform its contractual obligation.
Bank guarantees outstanding at balance date in respect of contractual performance
Commitments not recognized in the financial statements
CONSOLIDATED
2023
$’M
1,198
1,198
2022
$’M
1,150
1,150
(B) ACTUAL AND PENDING CLAIMS
In the ordinary course of business, the Company and its subsidiaries are subject to various actual and pending legal and project contract claims. The one case
disclosed in the FY2022 Annual Report, where the Group was defending a claim for the amount of $40 million in relation to a project, has since been ruled in
the Group's favour, restricted cash amounts have been released and the case is considered resolved.
(C) UNCERTAIN TAX POSITION
In the ordinary course of operations, the Group takes positions in relation to its obligations under tax law in the various jurisdictions in which it operates.
Where required the Group provides relevant tax authorities with the requested evidence to support our positions. We believe that the tax positions in the
financial statements have been appropriately taken in line with tax legislation, accounting guidance and external tax advice.
(D) ENVIRONMENTAL
The Group is subject to various environmental regulation requirements in relation to the Group’s global operations. We continue to monitor and abide by
these laws. Existing or pending claims in relation to environmental matters, including asbestos related matters are not expected to have a material effect on
the Group’s operations and performance, however, climate change legislation could have a direct effect on the Group’s customers and suppliers, which could
in turn impact the Group’s operations. We continue to monitor the developments in this area.
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Overview
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Operating & financial review
Financial statements
26. SUBSEQUENT EVENTS
Since the end of the financial year, the directors have resolved to pay a final dividend of 25.0 cents per fully paid ordinary share, including exchangeable
shares, unfranked (2022: 25.0 cents per share).
In accordance with AASB 110 Events after the Reporting Period, the aggregate amount of the proposed final dividend of $131 million is not recognized as a
liability as at 30 June 2023.
Unless disclosed elsewhere in the consolidated financial statements, no other material matter or circumstance has arisen since 30 June 2023 that has
significantly affected or may significantly affect:
• the consolidated entity’s operations in future financial years;
• the results of those operations in future financial years; or
• the consolidated entity’s state of affairs in future financial years.
27. PROCUREMENT
In certain situations, the Group enters into contracts with its customers which require the Group to procure goods and services on behalf of the customer.
Where the risks and rewards associated with the procurement activities are assumed by the Group, the revenues and expenses as well as the assets and
liabilities are recognized on a gross basis in the Consolidated Statement of Financial Performance and Consolidated Statement of Financial Position
respectively, and are set out in the following table:
REVENUE AND EXPENSES1
Procurement revenue at margin
Procurement costs at margin
Procurement revenue at nil margin
Procurement costs at nil margin
ASSETS AND LIABILITIES
Cash and cash equivalents
Trade and other receivables
Trade and other payables
CONSOLIDATED
2023
$’M
731
(690)
1,192
(1,192)
11
166
211
2022
$’M
499
(483)
946
(946)
12
152
199
1 Revenue and expenses exclude procurement revenue and expenses from associates.
Worley Annual Report 2023
175
175
Worley Annual Report 2023
Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
28.PROPERTY, PLANT AND EQUIPMENT AND RIGHT OF USE (ROU) ASSETS
Land and buildings
At cost
Accumulated depreciation
Property RoU assets
At cost
Accumulated amortization
Leasehold improvements
At cost
Accumulated depreciation
Plant and equipment and RoU assets
At cost
Accumulated amortization
IT equipment
At cost
Accumulated depreciation
Total property, plant and equipment and RoU assets
CONSOLIDATED
2023
$’M
348
(68)
280
569
(368)
201
238
(211)
27
427
(343)
84
227
(186)
41
633
2022
$’M
334
(57)
277
534
(335)
199
243
(213)
30
401
(324)
77
208
(174)
34
617
RECONCILIATIONS
Reconciliations of the carrying amounts of each class of property, plant and equipment and RoU assets at the beginning and end of the current and previous
financial years are set out below:
PROPERTY
LEASEHOLD
IMPROVEMENTS
$’M
LAND AND
BUILDINGS
$’M
277
-
-
-
(9)
-
12
280
267
-
-
-
(8)
-
18
277
Balance at 1 July 2022
Additions
Disposal and Remeasurements
Impairment Reversals
Depreciation
Amortization
Differences arising on translation of foreign operations
Balance at 30 June 2023
Balance at 1 July 2021
Additions
Disposal and Remeasurements
Impairment Reversals
Depreciation
Amortization
Differences arising on translation of foreign operations
Balance at 30 June 2022
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Worley Annual Report 2023
ROU ASSETS
$’M
199
61
14
1
-
(77)
3
201
199
60
-
4
-
(70)
6
199
CONSOLIDATED
PLANT AND
EQUIPMENT AND
ROU ASSETS
$’M
IT EQUIPMENT
$’M
TOTAL
$’M
77
35
-
-
(20)
(10)
2
84
82
25
(2)
-
(19)
(12)
3
77
34
25
-
-
(18)
-
-
41
38
12
-
-
(16)
-
-
34
617
127
9
1
(51)
(87)
17
633
618
106
(2)
4
(54)
(82)
27
617
30
6
(5)
-
(4)
-
-
27
32
9
-
-
(11)
-
-
30
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
28. PROPERTY, PLANT AND EQUIPMENT AND RIGHT OF USE (ROU) ASSETS (CONTINUED)
RECOGNITION AND MEASUREMENT
Property, plant and equipment and right of use assets are stated at cost less accumulated depreciation, amortization and impairment, if any.
The Group underwent a property rationalization program in FY2021 by reducing the number of offices required and increasing utilization of office space. As a
result, the Group recognized impairment of certain ROUs and related property, plant and equipment. There was a net $1 million (FY2022: $4 million) reversal
of impairment recognized as a result of a change in assumptions used in previously impaired properties.
Assets are impaired on an individual basis where they can be distinguished as a stand-alone asset (generate largely independent cash flows). Where assets
cannot be individually distinguished, they are grouped and tested within the appropriate CGU as described further in note 10.
ROU impairments represent the difference between the pre-impairment carrying value at assessment date less the recoverable amount. The recoverable
amounts include an assessment of potential sub-lease income which requires an element of judgement and are based on Management's best estimate.
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Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
29. DEFERRED TAX
(A) DEFERRED TAX ASSETS
The balance comprises temporary differences attributable to:
Amounts recognized in the Consolidated Statement of Financial Performance:
ECL allowance on trade receivables
Employee benefits provisions
Warranty provisions
Project provisions
Other provisions
Property, plant and equipment and right of use assets
Sundry accruals
Recognized tax losses
Unused foreign tax credits
Unrealized foreign exchange losses
Other
Total deferred tax assets
Deferred tax asset and liabilities offset1
Net deferred tax assets
Amounts recognized directly in equity:
Foreign exchange losses
Deferred tax assets
Balance at the beginning of the financial year
Debited/(credited) to the Statement of Financial Performance
Charged to equity
Deferred tax offset movement
Differences arising on translation of foreign operations
Balance at the end of the financial year
(B) DEFERRED TAX LIABILITIES
The balance comprises temporary differences attributable to:
Amounts recognized in the Consolidated Statement of Financial Performance:
Identifiable intangible assets and goodwill
Unbilled contract revenue
Property, plant and equipment and right of use assets
Unrealized foreign exchange gains
Prepayments
Other
Total deferred tax liabilities
Deferred tax asset and liabilities offset27
Net deferred tax liabilities
Amounts recognized directly in equity:
Cash flow hedges
Deferred tax liabilities
Balance at the beginning of the financial year
Charged to the Consolidated Statement of Financial Performance
Charged to equity
Deferred tax offset movement
Differences arising on translation of foreign operations
Balance at the end of the financial year
1 In accordance with AASB 112 Income Taxes
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CONSOLIDATED
2023
$’M
2022
$’M
5
111
11
21
133
61
11
175
3
7
(22)
516
(256)
260
(7)
253
192
79
7
(47)
22
253
271
78
19
13
-
(42)
339
(256)
83
(1)
82
90
36
-
(47)
3
82
5
80
14
32
101
61
12
113
3
14
(20)
415
(209)
206
(14)
192
213
(25)
(7)
(15)
26
192
233
53
23
13
1
(23)
300
(209)
91
(1)
90
60
42
(1)
(15)
4
90
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
29. DEFERRED TAX (CONTINUED)
RECOGNITION AND MEASUREMENT
Deferred tax assets and liabilities are recognized for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are
settled, based on those tax rates which are enacted or substantially enacted for each jurisdiction. The relevant tax rates are applied to the cumulative
amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary
differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognized in relation to these temporary
differences if they arose in a transaction, other than a business combination that at the time did not affect either accounting profit or taxable profit and loss
within the Consolidated Statement of Financial Performance.
Deferred tax assets and liabilities are not recognized for temporary differences between the carrying amount and tax bases of investments in controlled
entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not
reverse in the foreseeable future.
Current and deferred tax amounts relating to items recognized directly in equity are also recognized in equity and not in the Consolidated Statement of
Financial Performance.
KEY ESTIMATES
Deferred tax assets are recognized for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be
available to utilize those temporary differences. The Group assesses the recoverability of recognized and unrecognized deferred taxes on a consistent basis,
using estimates and assumptions relating to projected earnings and cash flows as applied in the Group goodwill impairment testing process.
30. DEFINED BENEFIT PLANS
The Group operates defined benefit pension plans which require contributions to be made to a separately administered fund. The Group also provides certain
post-employment healthcare benefits to employees (unfunded). Except for plans in Saudi Arabia, all plans are closed to new participants.
The balances in relation to defined benefit plans are as follows:
Amounts recognized in the Consolidated Statement of Financial Position:
Net defined benefits liability
Reclassification from employee entitlement provisions
Net defined benefits liability
CONSOLIDATED
2023
$’M
56
-
56
2022
$’M
41
10
51
RECOGNITION AND MEASUREMENT
Defined benefit obligation calculation is performed by qualified actuaries using the projected credit method.
The Group's net obligation in respect of defined benefits plans is calculated separately for each plan by estimating the amount of future benefit that
employees have earned, discounted with the fair value of the plan assets deducted.
Remeasurements of the net defined benefit liability which comprise actual gains and losses, the return on plan assets and any asset ceilings where
applicable are recognized in OCI. Remeasurements are not reclassified to profit or loss in subsequent periods.
Net interest expense and other expenses relating to defined benefit plans are recognized in profit and loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on
curtailment is recognized in profit and loss. Gains and losses on settlement of a defined benefit plan are recognized when settlement occurs.
Worley Annual Report 2023
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Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
31. RELATED PARTIES
(A) DIRECTORS
The names of persons who were directors of the Company at any time during the financial year were as follows:
John Grill, AO (Chair)
Andrew Liveris, AO (Deputy Chair and Lead Independent Director)
Wang Xiao Bin
Juan Suárez Coppel
Thomas Gorman
Roger Higgins
Anne Templeman-Jones
Christopher Haynes, OBE, resigned 30 June 2023
Martin Parkinson, AC
Emma Stein
Sharon Warburton
Chris Ashton (Chief Executive Officer and Managing Director)
(B) OTHER RELATED PARTIES
Aggregate amounts brought to account in relation to other transactions with each class of other related parties were as follows:
Net loan repayments to/(from):
Associates and related parties
Dividends received from:
Dividend revenue from associates
Aggregate amounts, receivable from, and payable to, each class of other related parties at balance date were as follows:
Current receivables
Associates and related parties
Current payables
Associates and related parties
CONSOLIDATED
2023
$’000
2022
$’000
1,000
25,617
6,000
1,000
50,000
37,000
-
4,000
Related entities provide specific advisory services to controlled entities in the normal course of business. These transactions are made on normal terms and
conditions and at market rates.
(C) CONTROLLING ENTITIES
Worley Limited is the ultimate Australian parent company.
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
32. REMUNERATION OF AUDITORS
Remuneration for audit or review of the financial reports of the Parent Entity or any other entity in the Group:
Fees for auditing the financial reports of the Parent and any controlled entities covering the Group
Fees for non-audit services:
-Tax related services
-Other non-audit services
Total fees to Group Auditors (Australia)
REMUNERATION OF OVERSEAS MEMBER FIRMS OF PRICEWATERHOUSECOOPERS
Fees for auditing the financial reports of the Parent and any controlled entities covering the Group
Fees for auditing the financial reports of any controlled entities excluded from the Group audit
Fees for non-audit services:
-Tax related services
-Other non-audit services
Total fees to overseas member firms of Group Auditors
Total remuneration of Group Auditors
Other auditors of controlled entities
Total Audit remuneration
CONSOLIDATED
2023
$
2022
$
3,180,836
2,433,965
347,850
839,661
3,282
70,000
4,368,347
2,507,247
2,562,446
2,809,351
2,762,358
2,214,571
553,826
2,416,469
998,331
1,372
8,342,092
5,976,632
12,710,439
8,483,879
431,398
129,912
13,141,837
8,613,791
In the current year, PricewaterhouseCoopers replaced Ernst & Young as the Group Auditor. Comparative amounts shown above reflect audit and non-audit
fees for Ernst & Young in FY 2022.
The amount of non audit services is higher in FY2023 compared to FY2022 due to certain one-off non audit services amounting to $1,710,529 committed in
FY2022 before the auditor transition. These transition services will not occur again from FY2024.
33. KEY MANAGEMENT PERSONNEL
Short term employee benefits
Post-employment benefits
Termination benefits
Other long term benefits
Share based payments
Total compensation
CONSOLIDATED
2023
$
20221
$
13,720,000
189,000
-
91,000
3,039,000
9,998,000
166,000
151,000
103,000
1,649,000
17,039,000
12,067,000
1 FY2022 numbers were updated in accordance with the FY2022 disclosures update in the FY2023 Remuneration report.
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Notes to and forming part of the consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
34. PARENT ENTITY DISCLOSURES
(A) PARENT ENTITY
Worley Limited Parent Entity financial statements include investments in the following entities:
ENTITY
COUNTRY OF INCORPORATION
Worley SPV1 Pty Limited
Worley Financial Services Pty Limited
Worley Canada Holdings Pty Limited
Worley Canada Callco Ltd
Worley Engineering Pty Limited
Engineering Securities Pty Limited atf The Worley Limited Trust
Australia
Australia
Australia
Canada
Australia
Australia
The Parent Entity’s summary financial information as required by the Corporations Act 2001 is as follows:
STATEMENT OF FINANCIAL PERFORMANCE
Profit before income tax expense
Income tax expense
Profit/(loss) after income tax
Profit attributable to members of Worley Limited
Retained profits at the beginning of the financial year
Net dividends paid
Retained profits at the end of the financial year
STATEMENT OF COMPREHENSIVE INCOME
Profit after income tax expense
Total comprehensive income, net of tax
STATEMENT OF FINANCIAL POSITION
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Performance rights reserve
Other reserves
Retained profits
Total equity
2023
$’M
2,977
440
198
121
100
94
3,930
2023
$’M
299
(6)
293
293
110
(262)
141
293
293
2,297
6,228
650
665
5,563
5,351
68
3
141
5,563
2022
$’M
2,977
440
198
121
100
94
3,930
2022
$’M
305
6
311
311
61
(262)
110
311
311
2,043
5,962
440
447
5,515
5,341
60
4
110
5,515
The Parent Entity has bank guarantees in respect of contractual performance outstanding at 30 June 2023 for the amount of nil (2022: $nil). These
commitments have not been recognized in the financial statements.
The Parent Entity has no commitments for expenditure.
(B) CLOSED GROUP
Worley Limited together with Worley No 2 Pty Limited, Worley Engineering Pty Limited, Worley Financial Services Pty Limited, Worley Services Pty Limited,
Engineering Securities Pty Limited, Advisian Group Pty Limited, Advisian Pty Ltd, Worley SPV1 Pty Limited, Worley EA Holdings Pty Limited, Worley
Infrastructure Holdings Pty Limited, Worley SEA Pty Limited, Worley South America Holdings Pty Limited, Worley Africa Holdings Pty Limited, Energy
Resourcing Australia Pty Limited, INTECSEA Pty Ltd, Worley ECR Pty Ltd, Worley Group Pty Ltd, and TW Power Services Pty Limited entered into a Deed of
Cross Guarantee. The effect of the deed is that Worley Limited has guaranteed to pay any deficiency in the event of the winding up of the abovementioned
controlled entities. The controlled entities have also given a similar guarantee in the event that Worley Limited is wound up. As a result, ASIC Corporations
Instrument 2016/785 relieves certain of the controlled entities from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial
reports.
The Statement of Financial Performance and Statement of Financial Position of the entities which are parties to the Deed of Cross Guarantee and The Worley
Limited Trust (Closed Group) are as follows:
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
34. PARENT ENTITY DISCLOSURES (CONTINUED)
CLOSED GROUP
STATEMENT OF FINANCIAL PERFORMANCE
Profit before income tax expense
Income tax expense
Profit after income tax expense
Profit attributable to members of Worley Limited
Retained profits at the beginning of the financial year
Retained profits of entities that became party to the deed during the financial year
Dividends paid
Retained profits at the end of the financial year
STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Deferred tax assets
Intangible assets
Property, plant and equipment
Other non-current assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Interest bearing loans and borrowings and lease liabilities
Provisions
Derivatives
Total current liabilities
Non-current liabilities
Trade and other payables
Interest bearing loans and borrowings and lease liabilities
Deferred tax liabilities
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained profits
TOTAL EQUITY
2023
$’M
131
(33)
98
98
355
-
(262)
191
13
3,120
130
3,263
45
214
48
5,671
5,978
9,241
2,903
10
103
9
3,025
11
591
25
627
3,652
5,589
5,351
47
191
5,589
2022
$’M
82
(17)
65
65
550
2
(262)
355
40
2,888
69
2,997
46
216
47
5,658
5,967
8,964
2,685
11
85
11
2,792
9
413
17
439
3,231
5,733
5,341
37
355
5,733
Worley Annual Report 2023
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
Notes to and forming part of the consolidated financial statements
Directors’ declaration
In accordance with a resolution of the directors of Worley Limited, I state that:
1.
In the opinion of the directors:
(a) the financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2023 and of its performance for the year ended on that
date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 2(A);
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and
(d) as at the date of this declaration, there are reasonable grounds to believe that the members of the Closed Group identified in note 34(B) will be able
to meet any obligations or liabilities to which they are or may become subject, by virtue of the Deed of Cross Guarantee.
2. This declaration has been made after receiving the declarations required to be made to the directors from the chief executive officer and chief financial
officer in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
On behalf of the Board
JOHN GRILL, AO
Chair
Sydney, 23 August 2023
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Overview
Context & strategy
Operating & financial review
Financial statements
Independent auditor’s report to the members of Worley Limited
Independent auditor’s report
To the members of Worley Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Worley Limited (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as at 30 June 2023 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
the consolidated statement of financial position as at 30 June 2023
the consolidated statement of changes in equity for the year then ended
the consolidated statement of cash flows for the year then ended
the consolidated statement of financial performance and other comprehensive income for the
year then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999
Liability limited by a scheme approved under Professional Standards Legislation.
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Independent auditor’s report to the members of Worley Limited
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
For the purpose of our audit we used overall Group materiality of $90.65 million, which represents
approximately 1% of the Group’s aggregated revenue.
We applied this threshold, together with qualitative considerations, to determine the scope of our
audit and the nature, timing and extent of our audit procedures and to evaluate the effect of
misstatements on the financial report as a whole.
We chose Group aggregated revenue because, in our view, it is the benchmark against which the
performance of the Group is most commonly measured.
We utilised a threshold of approximately 1% based on our professional judgement, noting it is
within the range of commonly acceptable thresholds.
Audit Scope
Our audit focused on where the Group made subjective judgements; for example, significant
accounting estimates involving assumptions and inherently uncertain future events.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Local audit firms operating under the Group audit team’s instructions conducted an audit of the
most significant components. The components were selected due to their significance to the
Group, either by individual size or by risk. The Group audit team performed audit procedures over
shared service functions such as Order to Cash, Purchase to Payables as well as centrally
managed areas such as the impairment assessment of goodwill, share based payments, and the
consolidation process. In addition, selected local audit firms performed targeted audit or specified
procedures on selected financial statement line items for a further four components.
Further audit procedures were performed over the remaining balances and the consolidation process,
including substantive and analytical procedures. The work carried out in these components, together
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Operating & financial review
Financial statements
with those additional procedures performed at the Group level, gave us sufficient evidence to express
an opinion on the financial report as a whole.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context. We communicated the key audit matters to the Audit
and Risk Committee.
Key audit matter
How our audit addressed the key audit matter
Revenue recognition and other related
balances
Refer to note 4 - Revenue and other income
$11,324 million, note 8 – Current and non-current
trade receivables, contract assets and other
assets $1,973 million and $135 million
respectively
As described in Note 4 to the consolidated
financial statements, the Group measures
revenue based on the effort expended relative to
the total expected effort to complete the service.
Our audit procedures, included the following,
amongst others:
Developed an understanding of the key controls
associated with the recognition and
measurement of revenue.
We tested the Group’s control over monitoring
and review of projects by attending a selection
of project review meetings and inspecting
relevant documentation prepared for such
meetings.
Moreover, there are certain key estimates that
drive the measurement of Group’s revenue and
its recognition in the consolidated financial
statements. These estimates include:
Percentage of completion, estimating
costs or extent of progress towards
completion of work; and
Variable consideration including
accounting for performance incentives.
Auditing these estimates requires significant
judgement given the;
estimation uncertainty; and
significant complexity involved in
estimating the costs or extent of progress
towards completion of work.
We considered the appropriateness of the
Group’s accounting policy in relation to the
recognition and measurement of revenue
against the requirements of the Australian
Accounting Standards.
For a selection of projects based on qualitative
and quantitative factors, we performed the
following procedures amongst others:
o We inspected the signed contract
agreements to develop an understanding of
key contract terms.
o We attended and/or inspected the
documentation for the project review
meetings for the projects selected based on
the above criteria.
o We held meetings with project
managers/directors and senior management
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Key audit matter
How our audit addressed the key audit matter
Therefore, recognition of revenue is considered a
key audit matter.
Other related balances
The Group recognised significant trade
receivables $1,216 million and unbilled contract
revenue $995 million as of the year end.
Given the geographical spread of the Group’s
projects and the Group’s bespoke arrangements
with customers, there is significant judgement
applied by management in assessing the
recoverability of long outstanding trade
receivables and unbilled contract revenue which
are overdue beyond 121 days and therefore, it is
considered as a key audit matter for the current
year audit.
for the selected projects to develop an
understanding of the status, key changes
from previous years resulting in cost
estimate changes, status of unapproved
change orders, recoverability of trade
receivables, recoverability of unbilled
contract revenue and the existence of any
material claims or litigations.
o We assessed the cost to complete estimate,
which is used to calculate the percentage of
completion, by:
‐ Evaluating the Group’s historical ability to
forecast costs to complete by comparing
the current cost estimate to the historical
cost estimate prepared by the Group’s
qualified professionals within the project
teams.
‐ Performed sensitivity analysis and/or
comparison of cost estimates to historical
actual costs incurred.
o Using the cost to complete estimate, we
assessed the reasonableness of the
foreseeable project loss provisions recorded
as of the year end for a selection of projects.
o We recalculated the revenue based on the
input method for lump sum projects to
assess the calculation of revenue recorded.
We tested the allocation of both labour and
non-labour costs to project costs to assess the
accuracy of project margins.
We assessed the competence, capabilities and
objectivity of qualified professionals within the
project teams who were involved in the process
of preparing the cost to complete estimate.
We tested a sample of payments and
transactions recorded post year end to assess
completeness of costs recorded during the
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Key audit matter
How our audit addressed the key audit matter
year.
For a selection of project related balances as of
the year end, we tested the subsequent
collection and subsequent billing of Trade
receivables and unbilled contract revenue,
respectively.
We assessed the Group’s estimates of the
expected credit losses, with reference to
historical losses and the ageing of trade
receivables and unbilled contract revenue.
We assessed the reasonableness of the
Group’s disclosures against the requirements of
Australian Accounting standards, including
disclosures with respect to significant estimates
and judgements.
Carrying value of goodwill
Refer to note 10 – Intangible assets; goodwill
$5,440 million
Our audit procedures, included the following,
amongst others:
The Group recognises assets for goodwill which
are allocated to a cash generating unit (CGU).
The Group has three cash generating units for
goodwill which are Americas, EMEA and APAC.
Under Australian Accounting Standards, the
Group is required to assess the carrying value of
goodwill annually for impairment, irrespective of
whether there are indicators of impairment.
The Group has prepared a value-in-use (VIU)
model based on discounted cashflow forecasts to
calculate the recoverable amount of each CGU.
Key assumptions in the VIU model include
expected future cash flows, discount rates and
terminal growth rates.
This was a key audit matter due to the financial
significance of the goodwill balance to the
consolidated statement of financial position and
the significant judgement involved in determining
the recoverable amount of each CGU, including
expected future cash flows, discount rates and
terminal growth rates.
Developed an understanding of the key
controls associated with the preparation
of the discounted cash flow models used
to assess the recoverable amount of the
CGUs.
Assessed whether the allocation of the
Group’s goodwill to the CGUs, which are
the smallest identifiable group of assets
that can generate largely independent
cash inflows, was consistent with our
knowledge of the Group’s operations and
internal Group reporting.
Assessed whether the CGUs included
assets, liabilities and cash flows directly
attributable to each CGU and a
reasonable allocation of corporate assets
and overheads.
Assessed the Group’s ability to forecast
future cash flows for the business by
comparing historical budgets with
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Key audit matter
How our audit addressed the key audit matter
reported actual results.
Compared the significant assumptions
used in the VIU models to historical
results, economic and industry forecasts.
Compared the forecast cash flows used
in the VIU models to the most up-to-date
budgets formally approved by the Board.
With the assistance of PwC valuation
experts:
o Assessed whether the VIU model
used to estimate the recoverable
amount of the CGUs is consistent
with the requirements of
Australian Accounting Standards
o Assessed whether the terminal
growth rates used in the VIU
models were consistent with the
long-term average growth rates
of the industry in which the Group
operates
o Assessed whether the discount
rates appropriately reflect the
risks of the CGUs by comparing
the discount rates assumptions to
market data, comparable
companies and industry
research.
Tested the mathematical accuracy of the
VIU model’s calculations.
Assessed the reasonableness of the disclosures
made in Note 10, including those regarding key
assumptions and sensitivities to changes in such
assumptions, against the requirements of
Australian Accounting Standards.
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Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 30 June 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
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Independent auditor’s report to the members of Worley Limited
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 108 to 133 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the remuneration report of Worley Limited for the year ended 30 June 2023 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Chris Dodd
Partner
Sydney
23 August 2023
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123
Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
Shareholder information
TOP 20 HOLDINGS OF FULLY PAID ORDINARY SHARES AS AT 7 AUGUST 2023
NAME
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
WILACI PTY LTD ATF THE SERPENTINE TRUST
BNP PARIBAS NOMS PTY LTD
SERPENTINE FOUNDATION PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MR JOHN MICHAEL GRILL
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
NETWEALTH INVESTMENTS LIMITED
MUTUAL TRUST PTY LTD
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
HAJU PTY LIMITED
JUHA PTY LIMITED
TAYLOR SQUARE DESIGNS PTY LTD
BNP PARIBAS NOMS (NZ) LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSI EDA
Total
SHARES
% OF ISSUED CAPITAL
RANK
223,406,273
90,506,185
59,247,503
24,979,511
22,390,562
13,421,410
5,400,000
3,762,363
2,855,491
2,826,277
2,545,989
2,377,178
2,308,861
2,056,569
2,005,430
1,715,000
1,704,289
1,423,641
1,408,351
1,192,515
467,533,398
42.47
17.20
11.26
4.75
4.26
2.55
1.03
0.72
0.54
0.54
0.48
0.45
0.44
0.39
0.38
0.33
0.32
0.27
0.27
0.23
88.88
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total number of current holders for all named classes is 24,148
The table above includes exchangeable shares. The ASX treats these shares as having been converted into ordinary shares of the Company at the time of
their issue for the purposes of the ASX Listing Rules.
SUBSTANTIAL HOLDERS OF 5% OR MORE OF FULLY PAID ORDINARY SHARES AS AT 7 AUGUST 2023*
NAME
NOTICE DATE
SHARES**
Dar Al-Handasah Consultants Shair and Partners Holdings Ltd.
T. Rowe Price Associates, Inc.
John Grill and associated companies
* As disclosed in substantial shareholder notices received by the Company.
** Represents the total number of votes attached to all the voting shares in the Company that the substantial holder or their associates have a relevant
interest in.
20 February 2023
11 May 2023
16 November 2018
123,794,870
34,748,359
34,336,128
RANGE OF FULLY PAID ORDINARY SHARES AS AT 7 AUGUST 2023
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
HOLDERS
15,378
7,266
886
542
76
24,148
6,000,414
16,344,748
6,407,305
12,277,714
484,956,774
525,986,955
UNMARKETABLE PARCELS
Minimum $ 500.00 parcel at $ 17.0900 per unit
MINIMUM PARCEL SIZE
30
HOLDERS
652
1.14
3.11
1.22
2.33
92.20
100.00
SHARES
5,589
SHARES
% OF ISSUED CAPITAL
The table above includes exchangeable shares. The ASX treats these exchangeable shares to have been converted into ordinary shares of the Company at the
time of their issue for the purposes of the ASX Listing Rules. In addition to the shares set out in the table, there is one special voting share issued to
Computershare Trust Company of Canada Limited as part of the consideration for the acquisition of the Colt Group.
VOTING RIGHTS
All ordinary shares carry one vote per share without restriction. In the case of the exchangeable shares, voting rights are provided through the special voting
share which carries an aggregate number of votes equal to the number of votes attached to the ordinary shares into which the exchangeable shares are
exchangeable.
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Worley Annual Report 2023
Glossary
This glossary provides the definitions for terms used throughout this Annual Report. Our sustainability basis of preparation provides the definitions and
reporting criteria for the below metrics.
-
-
-
Energy and emissions (energy use, Scope 1, Scope 2 and Scope 3 greenhouse gas emissions)
Gender diversity (women employees, women graduates, women Senior Leaders, women Group Executive and women Board)
Safety (LWCFR, SCFR, TRCFR)
View the sustainability basis of preparation (link).
$, $m, $b Australian dollars unless otherwise stated, Australian millions of dollars, Australian billions of dollars.
Ambition We (Worley) will be recognized as a global leader in sustainability solutions
Americas Services business line region encompassing sub‐regions of North America and Latin America.
APAC Services business line region encompassing Australia, Pacific, Asia and China.
ASIC Australian Securities and Investments Commission.
AAS Australian Accounting Standards
AASB Australian Accounting Standards Board
ASX Australian Securities Exchange.
Backlog The total dollar value of the amount of revenues expected to be recorded as a result of work performed under contracts or purchase/work orders
already awarded to the Group. With respect to discrete projects an amount is included for the work expected to be received in the future. For multi-year
contracts (i.e. framework agreements and master services agreements) and O&M contracts we include an amount of revenue we expect to receive for 36
months, regardless of the remaining life of the contract.
Due to the variation in the nature, size, expected duration, funding commitments and the scope of services required by our contracts and projects, the timing
of when the backlog will be recognized as revenue can vary significantly between individual contracts and projects.
Board The Board of directors of the Company. This includes non-executive directors and the Chief Executive Officer. The Group Company Secretary is not
included as a member of the Board.
Business Ambition for 1.5°C A campaign led by the Science Based Targets initiative in partnership with the UN Global Compact and the We Mean Business
Coalition. This campaign calls on companies to set science-based emissions reduction targets in line with the most ambitious goals of the Paris Agreement.
CAGR Compound Annual Growth Rate
CAPEX Capital expenditure.
CEO Chief Executive Officer.
Chair The Chair of the Board of Worley Limited.
Champions of Change Coalition A globally recognized, innovative strategy for achieving gender equality, advancing more and diverse women in leadership,
and building respectful and inclusive workforces.
Climate Leaders Coalition A cross-sectoral group of Australian corporate CEOs supporting the Paris Agreement commitments and setting public
decarbonization targets.
CO2e emission factors Worley’s approach to greenhouse gas emissions reporting is consistent with the reporting requirements set out in the Greenhouse
Gas Protocol Corporate Standard. The CO2e emissions factors are sourced from the latest International Energy Agency (IEA) emissions factors and
government sources such as the EIA (US Energy Information Agreement).
As per accepted practice, we do not restate previous year emissions based on emission factor updates.
Company or Worley Worley Limited ACN 096 090 158.
Corporate financial donations (to sustainability and corporate responsibility related activities) Comprise all community investment made by Worley
corporate entities and refers to actual expenditures, not commitments.
Community investments include voluntary donations plus investment of funds in the broader community where the target beneficiaries are external to
Worley. Voluntary donations and investment of funds in the broader community where the target beneficiaries are external to Worley can include:
• Contributions to charities, NGOs and research institutes (unrelated to the organization’s commercial research and development);
• Funds to support community infrastructure, such as recreational facilities; or
• Direct costs of social programs, including arts and educational events.
When reporting infrastructure investments, Worley includes the costs of goods and labor, in addition to capital costs, as well as the operating costs for
support of ongoing facilities or programs. We exclude legal and commercial activities or community investments where the purpose of the investment is
exclusively commercial as part of this calculation.
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
Corporate financial donations include donations made by Worley’s corporate center via the Worley Foundation, amounts invested in local communities as
required by law In South Africa under the Broad-Based Black Economic Empowerment legislation requirements, and India under section 135 of the
Companies Act 2013, Companies (Corporate Social Responsibility Policy) Rules 2014, as well as contributions by our regional operations as required by local
legislation.
Memberships, some scholarships and marketing spend are generally not included within this definition. Monetary and time contributions by our people, from
payroll deductions or direct giving, volunteering, and value of paid hours are not included within this definition.
The contributions (donations) are captured in the company’s finance systems at the time of payment, using the following codes / category, or equivalent:
• Expenditure category = contributions
• Resource type = charitable donations
Total contributions are measured in Australian Dollars for the reporting period in which the financial transaction is made. Contributions by offices outside of
Australia are converted to Australian Dollars using the average exchange rate during the month that the community initiative was undertaken.
Decarbonize / Decarbonization The reduction of carbon dioxide or other carbon compounds emitted into the atmosphere by the activities of industries,
countries or individuals.
Deferred Equity Plan (DEP) Deferred equity plan is a grant of equity rights which vests over the medium term.
Diversity & Inclusion (D&I) At Worley, the diversity of our people includes factors such as race, ethnicity, gender, sexual orientation, socio-economic status,
culture, age, physical ability, education, language, skill levels, family status, religious, political and other beliefs and work styles. We value and harness
diversity to build an environment where people are connected and belong. Inclusion is defined as the outcome to ensure that those that are different and
underrepresented feel welcome and valued.
Downstream The refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products
derived from crude oil and natural gas.
Days Sales Outstanding (DSO) The time it takes to collect cash from customers.
EBIT Earnings before interest and tax.
EBITA Earnings before interest and tax and amortization of intangible assets acquired through business combinations.
ECR Energy, chemicals and resources
EMEA Services business line region encompassing Europe, Middle East and Africa.
Energy intensity per dollar of revenue Average ratio of energy consumption relative to the aggregated revenue generated by the Company over the
reporting period. This is expressed as a ratio of energy consumption per $ million of aggregated revenue raised (MWh/$ million).
Employee This includes both the Group’s employees and contractors. For headcount purposes, this includes the following Person-type categories, as they
relate to Worley Group; employees, direct contractors, agency contractors, fixed term employees, project hires, expatriate home employees, and FTS job
shopper employees.
Employment contract There are two employment contract categories at Worley:
• Permanent contract: Permanent employee contract for full-time or part-time work for an indeterminate period.
• Fixed term or temporary contract: Fixed term employment contract that ends when a specific time period expires.
Employment types There are two employment types at Worley:
• Full time: A ‘full-time employee’ is defined according to local legislation and practice regarding working time (e.g. minimum of 30 hours per week).
• Part time: A ‘part-time employee’ is defined as an employee whose working hours per week, month or year is less than a ‘full-time employee.
EMTN Europe Medium Term Note Program.
Energy intensity per person Average ratio of energy consumption relative to number of personnel as at the end of the reporting period. This is expressed as
a ratio of energy consumption per person (MWh/person).
EPC Engineering, Procurement and Construction.
EPC contract Under an EPC contract, we will generally be responsible for the design of, the procurement of equipment and materials for, and the construction
and commissioning of an asset, such as a power station. This will generally require us to ensure that the completed asset meets certain specified
performance targets. To do so, we will generally procure the necessary equipment and materials and engage various sub‐contractors ourselves.
EPCM Engineering, Procurement and Construction Management.
EPCM contract Under an EPCM contract, we will generally be responsible for providing our professional services, but unlike an EPC contract, will not be
responsible for delivering a completed asset to our customer. Instead, we will provide engineering and design services to our customer, procure equipment
but only as agent for our customer and manage our customer’s other suppliers as the customer’s representative. We will generally be paid an hourly rate for
the services we provide.
EPS Earnings per share. Determined by dividing the Group NPAT, or Group NPATA, by the weighted average number of the Company’s ordinary shares on
issue during the financial year.
ESG Environmental, social and governance.
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Executive Executives include both executive directors and group executives and have authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly.
Factored Sales Pipeline Factored for likelihood of projects proceeding and award to Worley, as at June 2023.
Front-end engineering design (FEED) Basic engineering design providing owners and their financiers with information enabling them to determine whether
or not and, if so, how to commit resources to a proposed project to maximize its projected returns.
FY2022 and FY2023 Financial year 2022 and financial year 2023.
GICS Global Industry Classification Standard
GID Global Integrated Delivery. Our GID team in India work on projects anywhere in the world and seamlessly transition between projects, allowing us to
achieve high rates of utilization and consistently high quality of work.
Greenhouse gas emissions intensity per unit of energy Average ratio of greenhouse gas emissions per unit energy used (t CO2e /MWh) during the reporting
period.
GRI Global Reporting Initiative
GRIT GRIT awards - Growth, Resilience, Innovation and Transition awards issued by ALLY, a community of energy industry professionals.
Group Worley Limited and the entities it controls.
Group Executive Direct reports to the Chief Executive Officer who have executive accountabilities for managing major regional business units (P&L) and
significant functions, as well as developing and executing Group strategy. The Group Company Secretary is a member of the Group Executive.
Gross Margin Sold Gross margin on projects that have been identified as ‘Closed, Won’ in our customer sales platform over the reporting period.
Gross Margin Delivered Gross margin on projects that have been executed and recognized in the Group's earnings over the reporting period.
HSE Health, Safety and Environment.
HSS Health, Safety and Sustainability.
IFRS Foundation The International Financial Reporting Standards Foundation is a nonprofit organization that oversees financial reporting standard-setting.
Integrated gas Our subsector Integrated Gas includes all upstream and midstream elements of the natural gas value chain from extraction, production
through gas processing, storage, liquefaction and regasification. It also includes the emerging renewable natural gas.
ISSB International Sustainability Standards Board.
Key Management Personnel (KMP) Those persons having authority and responsibility for planning, directing and controlling the activities of the entity,
directly or indirectly, including any director (whether executive or otherwise) of that entity. KMP comprise Executives and Non‐Executive Directors.
KPI Key Performance Indicator.
Latinx People who are of or relate to Latin American origin or descent.
Long-Term Incentive (LTI) Long-term incentive is a grant of performance rights which vest over the long-term, subject to performance conditions.
Low-carbon energy This includes energy derived from renewable sources, low-carbon hydrogen, nuclear, integrated gas, power networks & storage. We
classify integrated gas as low-carbon energy in the context of comparison with other commercially available (at scale) energy sources.
Low-carbon fuels Refers to liquid fuels and include bioethanol, renewable diesel, sustainable aviation fuels (SAF), blue, green and e-ammonia, blue, green
and e-methanol, green marine fuels and e-fuels
Low-carbon hydrogen In absence of a global definition, this includes all forms of hydrogen except those derived from fossil fuels without carbon capture and
storage.
Low-carbon infrastructure Infrastructure supportive of global net-zero commitments, such as transmission networks required to integrate renewables, port
infrastructure supporting export of low-carbon fuels/offshore wind etc.
Lower carbon denotes methodologies and technologies that effectively reduce carbon emissions and mitigate the discharge of greenhouse gases, thereby
fostering environmental sustainability and combatting climate change
Net zero The internationally agreed upon goal for mitigating global warming in the second half of the 21st century. The International Panel on Climate Change
(IPCC) concluded the need for net-zero greenhouse gas emissions by 2050, to remain consistent with global warming of 1.5 degrees Celsius above pre-
industrial levels.
Non-Executive Director (NED) Non‐executive directors of the entity have authority and responsibility for planning, directing and controlling the activities of
the entity, directly or indirectly.
NPAT (net profit after tax) The net profit earned by the Group after deducting all expenses including interest, depreciation and tax. From time to time, for
remuneration purposes, the Board may use its discretion to apply the underlying NPAT which in the Board’s opinion reflects the Company’s operating results.
NPATA (net profit after tax and before amortization of intangible assets acquired through business combinations) The net profit after tax and before
amortization of intangible assets acquired through business combinations. From time to time, for remuneration purposes, the Board may use its discretion to
apply the underlying NPATA which in the Board’s opinion reflects the Company’s operating results.
OPEX Operational expenditure.
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Financial statements
Overview
Context & strategy
Operating & financial review
Financial statements
Paris Agreement An agreement within the United Nations Framework Convention on Climate Change. The aim of the Paris Agreement is to strengthen the
global response to the threat of climate change by keeping a global temperature rise this century well below 2°C above pre-industrial levels, and to pursue
efforts to limit the temperature increase further to 1.5°C.
People network groups Our People network groups bring employees with shared characteristics or life experiences, such as gender, race, cultural heritage,
sexual orientation and/or gender identity, disability, together in a safe space and offer varying opportunities for members. We also have People network
groups which bring employees with shared passions, such as sustainability or mental health, together. These include social and development opportunities,
mentoring, volunteering, sharing best practice and a chance to gain skills and experience in areas they may not get the opportunity to do in their ‘day job’.
R3 Ready, Response and Recovery. Our program for business security and continuity.
Reporting period Reporting period highlights our efforts from 1 July 2022 to 30 June 2023, unless otherwise stated.
Senior Leaders Defined using Worley’s Organizational Role Framework (typically tiers one to three). This includes Worley’s Group Executive and managers
below the Group Executive who have leadership accountabilities for business units (profit and loss) and functions (including sub-functions).
For employees and contingent workers in locations which are enabled on the HR system of record, Senior Leaders are defined as those that have a job
classified as tier one to three, per the Global Job Framework.
Skilled volunteering At Worley, the term skilled volunteering is used when our people provide skilled services to community-based organizations in their
time outside of paid working hours on a no fee basis.
STEM Science, Technology, Engineering and Mathematics.
Short-Term Incentive (STI) Cash award paid for annual performance.
Sustainability Encompasses those elements of our environmental, social and governance (ESG) performance. It also refers to our activities supporting our
customers to meet sustainability objectives on their projects. As part of our Ambition, we provide disclosures on sustainability-related work. How this is
defined is provided on page 26.
Sustainability-linked bond A type of bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer
achieves predefined sustainability or ESG objectives. It is a forward-looking performance-based instrument with a flexible structure.
Sustainability-related project / work See sustainability and our definition on page 26.
Sustainability-related revenue Aggregated revenue derived from sustainability-related work, in line with our definition on page 26.
Sustainable Solutions Our approach to incorporating sustainable thinking into project delivery and design. Sustainable Solutions enables our people to
identify and quantify sustainability ideas and savings related to carbon and energy use.
Target Represents a defined and measurable goal set to achieve environmentally and socially responsible outcomes. These targets guide actions and strategies
across various sectors, helping organizations and societies work towards positive impacts on the environment, communities, and overall well-being
Total Shareholder Return (TSR) Provides a measure of the change in the value of the Company’s share price over a period, including reinvested dividends,
expressed as a percentage of the opening value of the shares.
Unlock your genius A STEM engagement program stewarded by Worley. It presents complex topics in a digestible format, making them easy to understand.
Upstream The searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells and the subsequent drilling and
operation of the wells that recover and bring the crude oil and/or raw natural gas to the surface.
Worley Foundation The Worley Foundation was established in 2013 with objectives to support the execution of high impact strategic community projects;
become a vehicle for direct corporate investment, fundraising and volunteering; and expand opportunities for our people to be directly or indirectly involved in
foundation activities.
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Corporate information
Worley Limited
ACN 096 090 158
DIRECTORS
John Grill, AO (Chair)
Andrew Liveris, AO (Deputy Chair and Lead Independent Director)
Wang Xiao Bin
Juan Suárez Coppel
Joseph Geagea, appointed 1 July 2023
Thomas Gorman
Roger Higgins
Anne Templeman-Jones
Christopher Haynes, OBE, resigned 30 June 2023
Martin Parkinson, AC
Emma Stein
Sharon Warburton
Chris Ashton (Chief Executive Officer and Managing Director)
SHARE REGISTRY
Computershare Investor Services Pty Limited
Level 3, 60 Carrington Street
Sydney NSW 2000
Australia
Phone: 1300 850 505
ANNUAL GENERAL MEETING 2023
Worley’s 2023 Annual General Meeting (AGM) will convene on Friday 20
October 2023 (AEDT). Meeting details will be included in the Notice of
Meeting. The closing date for the receipt of external director nominations
is Friday 1 September 2023 (AEST).
GROUP COMPANY SECRETARY
Nuala O'Leary
REGISTERED OFFICE
Level 17
141 Walker Street
North Sydney NSW 2060
+61 2 8923 6866
AUDITORS
PricewaterhouseCoopers ('PwC')
BANKERS
Arab Banking Corporation
Banco Bilbao Vizcaya Argentaria, S.A.
Bank of America, N.A.
Bank of China
Barclays Bank PLC
BNP Paribas
Commonwealth Bank of Australia
Deutsche Bank AG.
First Abu Dhabi Bank
HSBC Bank
ING Bank N.V.
Mizuho Bank, Ltd
Royal Bank of Canada
Standard Chartered Bank
The Saudi British Bank
U.S. Bank National Association
UBS AG
Wells Fargo Bank, N.A.
Westpac Banking Corporation
LAWYERS
Herbert Smith Freehills
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worley.com