Worleyparsons Limited (WOR) has signed a letter of intent (LOI) with Chemaweyaat with initial revenues US$3m by Australian stockmarket analyst Macquarie Research Equities.

Worleyparsons Limited (WOR) Signs Letter of Intent for CIC

Small Initial Contract for CIC Abu Dhabi:

WOR has announced that it has signed a letter of intent (LOI) with Chemaweyaat for the Complex 1 Project in Chemicals Industrial City, Abu Dhabi. Initial revenues under the LOI are US$3m, and as such can be considered immaterial.

Project Could Become Major:

Chemaweyaat is a startup developed by the Abu Dhabi Investment Council and International Petroleum Company. The intention is to create a US$10-12b petrochemicals complex in Chemicals Industrial City. This would be the largest integrated complex in the world. If the project proceeds we would expect that WOR would be involved in a number of separate design and EPCM contracts.

No Changes to Earnings Forecasts:

Given that the project is at a very preliminary stage we have not allowed for any incremental revenue or earnings at this point. If the project progresses that assumption could, we believe, change.

Valuation

There are no changes to our DCF-based valuation, share price target or rating.