Worley Warns A$60m Earnings Hit from Middle East Conflict
Worley announced that the ongoing conflict in the Middle East will reduce its full‑year underlying operating earnings by approximately A$60 million (US$41.36 million), which is nearly twice the earlier guidance of A$30‑40 million. The company added that the strengthening Australian dollar, which reached a near four‑year high in early May, will generate an additional translation impact of about A$50 million on reported annual underlying operating earnings. The combined effect translates into a material earnings downgrade for the fiscal year.
The earnings pressure contributed to a sharp decline in Worley's share price, which fell up to 10.7 % on the day, trading at A$10.96 and ranking among the poorest performers on the ASX 200 index.
Worley noted that the protracted Middle East conflict continues to stall existing projects and has caused delays in the award and commencement of new projects, although it confirmed that no project cancellations have occurred to date.
No further operational or financial measures were disclosed.