WOR Annual Report 2023
WOR Annual Report 2023
WOR Annual Report 2023
Overview
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.
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Overview Context & strategy Operating & financial review Financial statements
Contents
Overview Operating and financial review
2 About this report 43 Operations
4 Our transformation journey 51 ESG performance summary
6 Group highlights 55 Performance
8 Chair’s letter 85 Outlook
12 CEO’s letter 86 Risk management
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.
Our
earnings diversification ways of working
• Launched our ECR • Set our net-zero Scope 1 and Scope 2
transformation
acquisition Cost emissions target for 2030
Synergies Program
• Completed the successful integration of Jacobs
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Overview Context & strategy Operating & financial review Financial statements
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
2022 • Completed the operational cost savings program
delivering $375 million of recurring savings to cost
• Established ESG in our remuneration
base, delivering a scalable business as we grow
framework, with 20% weighting for ESG
metrics in our senior leaders’ short-term • Sold the North American turnaround and
incentives business scorecard maintenance business, in line with our
strategic direction
• Launched our updated Climate Change
Position Statement, strengthening • Increased our ambition for our interim target
our response and actions to address to a 65% reduction in net Scope 1 and Scope 2
Group highlights
Delivering our ambition
Our people
We energize and empower our people to drive sustainable impact
Our portfolio
We are our customers' most trusted partner
Our planet
We partner with customers as stewards of a more sustainable world
Image taken by Berenice Celery, as part of our Earth Day photo competition
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Overview Context & strategy Operating & financial review Financial statements
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.
2. FY2020 cash flow excludes lease liability payments ($147 million) in accordance with AASB 16 Leases, adopted on 1 July 2019.
3. FY2020 and FY2021 prior periods have been restated.
4. All figures are statutory unless noted as underlying.
Operational highlights
Chair’s letter
Growth delivered and
momentum continuing
John Grill AO
Chair and Non-Executive Director
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Overview Context & strategy Operating & financial review Financial statements
Throughout the year we’ve seen continued growth in our Our cash conversion was 86.6%1 and is within our target range of
end‑markets as energy security, climate change and supply chain 85% to 95%. We distributed a dividend of 25 cents per share to our
constraints drive increased investment in new infrastructure and shareholders.
technologies across the energy, chemicals and resources sectors.
We’re partnering with our customers to accelerate their
Central to our success are the over 48,200 people who embody transition to a more sustainable future
our purpose of “delivering a more sustainable world” by finding
In our view, the most significant contribution we can make to
solutions to our customers’ most complex challenges. In doing so,
delivering a more sustainable world is helping our customers
they create value not just for our shareholders, but a broad
navigate their transition to a lower-carbon future.
range of stakeholders across the countries and communities in
which we work. We’re bridging two worlds as we move towards more sustainable
energy sources while also helping our customers to reduce
Our purpose, underpinned by our values, continues to inspire
emissions from existing assets and become more efficient in their
our team. It drives our commitment to building a culture where
businesses. In this context, there continues to be much discussion
our people can be at their best every day – a culture that values
about the future of traditional energy sources, including gas, and
diversity, equity and inclusion, and is founded on mutual respect
hard-to-abate sectors. We have an important role to support
and a deep desire for learning and innovation.
our customers in these sectors to decarbonize where possible,
We’ve delivered a strong financial performance in line recognizing that they have a role to play as economies balance the
with our expectations pace of the energy transition with the immediate requirements of
In FY2023, we have delivered 21% growth in aggregated revenue energy security, independence and affordability.
and 16% growth in underlying EBITA. We’ve seen an increase in The growth of our sustainability-related work demonstrates how
our sustainability-related work, which now accounts for 41% of we’re applying our capabilities and solutions to our customers’
our aggregated revenue, up from 35% in FY2022. These results most complex challenges.
reflect the growing demand for our services and our customers’ We’ve seen several of our world-first sustainability-related
confidence in our capabilities as they look to us to develop their projects progress into engineering, procurement and construction
traditional and sustainability-related projects. phases (see page 14). We’re using breakthrough approaches in
Throughout the year we improved our capital management supply chain management and modularization, showing how our
position. We have good liquidity and access to flexible, equipment and fabrication capability is contributing to a paradigm
competitively priced debt capital sources. In FY2023 we shift in delivering critical infrastructure across the world.
issued a new sustainability-linked bond, and we renewed our We use our global knowledge, technology and data to bring
syndicated bank facility at an improved corporate margin. We’ve value to our customers anywhere in the world. This, combined
extended our debt maturity and our long-term strategy includes with our innovative mindset and culture of shared success, is a
having maturities with less concentration by year. Our capital key differentiator for us.
management strategy is structured around funding our growth
and delivering increased value to our shareholders.
“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
41%
of aggregated revenue
16%
underlying EBITA
25c
final dividend paid
$10,928 million in FY2023, is sustainability-related, from FY2022
from $9,065 million up from 35% at FY2022
FY2022
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).
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.
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We’ve made significant progress on our ESG commitments In those 20 years, change has been a constant and is likely
in FY2023. to persist for some time. We are embracing this and using
the knowledge from our past to shape the future, while
Our Responsible Business Assessment Standard guides us to
following the clear growth trajectory we see as a leader
align our portfolio of customers and projects with responsible
in sustainability solutions.
business practice.
We look forward to turning challenges into opportunities,
In October 2022, we issued our second Group Modern Slavery
familiarity into innovation. We’re partnering with our customers,
Statement, which shows our commitment to combating human
communities and stakeholders to become the changemakers
rights abuses.
the world needs now, to turn our shared ambition of net zero
Our Data Protection Office governs compliance of our into a reality.
cybersecurity program with global data protection requirements,
With this in mind, we’d like to thank you, our shareholders, for
as specified in Australia, Europe, the US and other jurisdictions in
your continued support during this time. We’d also like to extend
which we work.
our thanks to our directors, leadership team, our customers and
Maintaining and enhancing our reputation for integrity, honesty partners, and importantly, our people, who have been instrumental
and ethical practices is important to the Board and underpins our to our successes.
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,
John Grill AO
who is retiring after 11 years on the Worley Board. I sincerely thank
Chris for his long and dedicated service. Chair and Non-Executive Director
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.
CEO’s letter
Unlocking long-term
value across our
diversified markets
Chris Ashton
Chief Executive Officer
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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 We’ve consistently delivered improved performance in line
us apart. We want our people to be energized and empowered, and with our expectations
we’re building a values-inspired culture that amplifies big picture
Over the past two years, we’ve consistently delivered and improved
thinking, is open to possibilities and demonstrates collaboration
our performance. Our disciplined approach to delivering our
and innovation.
strategy has led to increased earnings and margin improvement for
We’re facing into an extended period of increased FY2023. Our underlying EBITA of $635 million is up 16% compared
investment in our sectors to FY2022. Our EBITA margin excluding procurement has improved
As a leader in the sectors we serve, we have a compelling and is now 6.5%,3 up from 6.4% at FY2022.
value proposition, as we face into what we believe will be a Our aggregated revenue is $10.9 billion, up from $9.1 billion in
prolonged upcycle. We maintain leading positions in the traditional FY2022. We’re seeing evidence from our customers that this trend
sectors we serve and are growing our natural share of new and is expected to continue, as we solve their complex challenges
emerging sustainability-related opportunities. in traditional and sustainability-related work, using innovative
We know that when it comes to achieving net zero, the solutions.
investment required is significant. The Financing the Sustainability-related work has been a key driver of our growth.
Transition paper,1 released in March by the Energy Transitions With sustainability-related work now accounting for 41% of our
Commission, tells us that “around US$3.5 trillion a year of capital aggregated revenue, we’re confident we’ll continue to make strong
investment will be needed on average between now and progress towards our ambition to have 75% of our revenue from
2050 to build a net-zero global economy.” sustainability-related work by FY2026.
Today, global spending has just reached one trillion dollars per In FY2023, we won $6.3 billion of new sustainability-related work,
annum. That’s less than a third of what it needs to be.2 which is almost double the previous year. This is reflective of our
The rate of investment continues to accelerate, as governments differentiated position in accelerating growth markets.
look to create the right conditions for our customers to be more At the same time, we’re committed to supporting our customers
ambitious in their own sustainability goals. For example, the with their traditional work, as they move towards a lower-carbon
US Inflation Reduction Act and the EU Green Deal Industrial Plan future, helping them bring to life projects that are less carbon
have accelerated investment in carbon capture use and storage, intensive, more efficient and digitally enabled. Traditional work in
low‑carbon hydrogen and battery materials. 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.
41%
$3.2 billion to $4.5 billion
45%
of backlog is sustainability-related
77%
vs 56% at FY2022
sustainability-related revenue work, up 56%3, from $4.1 billion to sustainability-related opportunities
since FY2022 $6.4 billion, since FY2022 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. International Renewable Energy Agency, Global Landscape of Renewable Energy finance 2023, February 2023.
3. Excludes the North American turnaround and maintenance business.
Our total backlog has grown 14%1 in the past year. This We also expect to benefit from further operating leverage in the
demonstrates that we have been able to convert growth medium term, having reached our cost savings run rate target of
in our factored sales pipeline into backlog and revenue. $375 million per annum.
Meanwhile, our total factored sales pipeline has continued to We’re already realizing the benefits of our $100 million strategic
increase, up 46% during the year and is a leading indicator of investment in organic growth and gaining market share. In FY2023,
future growth. We expect around two-thirds of our factored we spent $37 million to further accelerate our growth areas,
sales pipeline to be awarded in the next 12 months. focusing on capability building and digital enablement, new
We’re leading the way in completing some of the world’s solution development, and partnerships. We’re seeing a return on
most ambitious and large-scale sustainability projects, investment through key awards and pipeline growth in areas such
setting us apart as leaders in the industry as low-carbon hydrogen, battery materials and carbon capture,
use and storage (CCUS).
Delivering these projects requires innovative delivery models
that include digital solutions, automation and a “design one build We continue to invest in technology and digitalization to enhance
many” approach. Some of these projects are progressing to asset efficiency and business productivity. We’re increasing the
both detailed engineering and construction phases. For example automation of engineering deliverables to drive productivity gains
1PointFive’s first commercial scale Direct Air Capture (DAC) and to allow our people to focus on high-value, high-margin work.
plant in the US and Northvolt’s battery cathode active material We’re actively managing our portfolio in line with our strategy
facility as part of its battery gigafactory development in Sweden. and ambition. The sale of our North American maintenance
We see a clear path to increasing earnings and margins and turnaround business in May, allows us to focus on those
businesses and capabilities that support our strategy to deliver
We’re delivering on our strategy and building a sustainable growth
high-value solutions in growth markets and our ambition to grow
business. Market growth, increased market share and margin
our professional services revenue from sustainability-related work.
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.
180%
growth in average sustainability-
47%
sustainability-related revenue
$1.8b+
increase in backlog at FY2023 over
related project size won vs FY2022, across project wins in FY2023 FY2022 from investment in strategic
indicating that more projects are vs 33% in FY2022 growth areas (see page 28).
moving into subsequent phases
1. Excluding the impact of the sale of the North American turnaround and maintenance business.
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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.
Adrian Smith
Nuala O’Leary
Executive Group Director,
Group Company Secretary
Transformation
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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 Inflation in energy prices, particularly in Europe, is renewing
short‑term reliance on established energy and resources. The
New policies and regulatory frameworks (e.g. US Inflation
increased investment in liquefied natural gas (LNG) infrastructure,
Reduction Act) are creating the right conditions for our customers
driven by energy security concerns, is elevating gas as a globally
to be more ambitious in their sustainability investments and goals.
traded commodity.
In February 2023, the European Commission announced the
Resource nationalism is also driving investments in critical
Green Deal Industrial Plan. This plan builds on the €1 trillion
infrastructure. The Inflation Reduction Act in the US has launched
European Green Deal to scale up the EU’s technology development,
America’s largest ever investment in decarbonization – directing
manufacturing capacity and installation of net-zero technologies
US$370 billion towards investment in clean energy (such as
and products. In Australia, legislation passed in September 2022 to
hydrogen, CCUS and low-carbon fuels).1 In parallel, the US
achieve net zero by 2050, with more aggressive targets for 2030
government has called on US oil refiners to produce more gasoline
than the previous government.
and diesel to help mitigate price pressures due to the Russia-
Energy transition investment has reached more than US$1 trillion Ukraine crisis.
for the first time according to BloombergNEF’s latest Energy
Our strategy addresses how we’re tackling the criticality of near-
Transition Investment Trends 2023. It forecasts that investment
term affordable energy, and energy security, while addressing the
will need to triple between now and 2030 to be on a pathway to
challenge of decarbonizing energy and industry (see page 24).
net zero by 2050.
There is a surge in demand for critical minerals driven by the energy Sustainable investment is growing and requires a complex
transition, which the International Energy Agency (IEA) forecasts to balance of mulitple factors
quadruple by 2050. After decades of promise, global sustainable investments are set
We’re partnering with our customers to develop innovative to exceed US$53 trillion by 20252, representing more than a third of
solutions to address their needs in delivering the energy the US$140.5 trillion in projected total assets under management.
transition (see page 60). This is driven by investor demand, government regulation and
societal pressure.
Independent and diverse energy supply is in demand
There have been significant developments in ESG regulations,
The response to the energy crisis in Europe shows a significant including litigation of operators and institutional investors for
ability to react quickly with new policy settings, which included “greenwashing.”
an energy security and energy transition focus.
1.
IEA, Inflation Reduction Act of 2022, April 2023.
2. Bloomberg Intelligence, ESG assets may hit $53 trillion by 2025, a third of global AUM, February 2023.
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Overview Context & strategy Operating & financial review Financial statements
These developments are increasing the transparency and quality of Our purpose and our attraction and retention strategies enable
corporate disclosures as well as accountability for delivery against us to navigate competition for talent (see page 76), but we
public statements. The introduction of the ISSB standards by the expect the demand for our expertise to outweigh supply at some
IFRS Foundation marks significant progress in financial disclosure point in the future. As such, we’re increasing use of existing and
norms. This shift underscores the growing emphasis on risks and developing technologies, digitalization and automation to enhance
opportunities related to sustainability, supporting businesses that talent attraction and transform how we deliver solutions for our
prioritize sustainable practices. customers (see page 60).
An emerging concept is “environmentalism that builds,” leveraging Digital innovation has the potential to revolutionize project
economic growth to propel the necessary scale and speed of delivery and asset management
sustainable development. Maintaining trust as companies take the
To deliver projects at pace and scale, the world needs to increase
lead in ESG efforts is vital, transitioning from intentions to tangible
use of existing and developing technologies, digitization and
actions. Amidst challenges like inequality, climate change, and
automation. Using data, automation and artificial intelligence
conflicts, regulatory bodies and investors are increasingly focused
(AI) is critical to deliver mid-century net-zero outcomes. The
on driving responsible actions and accountability.
World Economic Forum notes that US$1.3 trillion can be saved
Participating in programs like the UN Global Compact Business on clean energy generation investment between 2020 and 2050
and Human Rights Accelerator demonstrates our commitment by implementing automation and AI alone2. It also estimates that
to addressing human rights concerns and operating ethically project costs and implementation schedules could reduce by 30 to
(see page 53). 50%, more than doubling project returns through digital innovation.
Tightening talent market continues to demand focus Additionally, customers are driving step-change improvements
The World Economic Forum1 states that without a new paradigm in existing infrastructure and assets through big data and digital
of leadership and an associated talent strategy, the global energy asset management. Customers can use advanced analytics
crisis will never be solved. They’ve noted that a sustainable supply to significantly lower costs and risks, reduce preventative
of talent is needed, together with the billions of dollars of capital maintenance expenses and increase reliability.
and government support, to achieve a greater energy supply. We’re helping customers make autonomous industrial assets a
It’s critical we ensure a pipeline of people with skills and experience reality by driving innovation in project delivery, generative AI and
to meet these needs. Our people have fungible skills as they automation (see page 63).
work across both traditional and sustainability-related work.
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.
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Overview Context & strategy Operating & financial review Financial statements
Purpose Values
Delivering a more We value Life We Rise to the We are Stronger We Unlock brilliance
sustainable world. We believe in the challenge together We are passionate
safety, health and We love a challenge. We thrive in real about innovating
well‑being of our We go the extra mile, relationships and and learning. We
Ambition people, communities delivering new and partnerships. We value, share and
We will be recognized and the environment. better solutions to nurture networks grow our expertise.
as a global leader in Without it, nothing complex problems. and collaboration.
sustainability solutions. else matters. We recognize our
differences make
us stronger.
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.
Finance
Active capital management from diverseand
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
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
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Communities
21 Worley Foundation projects
We value We Rise to We are We Unlock
Life the challenge Stronger brilliance $11,170 million economic value
together generated and distributed
Read more on page 78
Our strategy
We are facing two realities in our Our customers are making substantial capital investments in both areas. We’re right
energy system: at the heart of it.
1. We’re tackling the criticality of We have a bold ambition that by FY2026, 75% of our aggregated revenue will come
near-term affordable energy from sustainability-related work. Traditional energy markets remain important to us,
and energy security. and investment in these areas will increase due to energy security, affordability and
depleting reserves.
2. We’re addressing the challenge of
decarbonizing energy and industry We’re helping customers in traditional hard-to-abate markets decarbonize, while also
to deliver net zero by 20501, shaping the future of sustainability in the markets where we operate.
against a landscape that is ever We’re partnering with our customers – not just delivering projects – to create value over
more complex. 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.
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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.
Supporting customers in mature markets Leading position in establishing markets Focused steps in breakthrough markets
We’re focused on targeted areas We continue to build our leading position We’re actively managing our portfolio
– energy security, decarbonization in establishing market segments as of businesses and focusing on growth
and lower-carbon intensity developments. technologies scale and supply and markets, capabilities and offerings that
demand normalize. drive value creation for our broader set
of stakeholders.
Low-carbon
energy
storage
Conventional
energy
Chemical
& fuels
and reuse
Specialty
chemicals
Resources
Resources
FY2023 sustainability-related
Environment & society Asset sustainability aggregated revenue (%)
• Environmental management • Sustainable design
L ow-carbon energy 33%
• Social performance • Development and
Integrated gas
• Policy & regulatory commercialization Nuclear
• Remediation & liability • Performance optimization Renewable energy
Direct air capture
management • Decommissioning & restoration
Low-carbon hydrogen
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Enabling emerging
technologies in
solar energy.
See our case study on page 30.
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Overview Context & strategy Operating & financial review Financial statements
$37m $1.8b+
investment in strategic increase in backlog at
growth areas in FY2023 FY2023 over FY2022
from investment in
strategic growth areas
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 This aims to drive new emerging technology down the cost curve to
achieve faster commerciality.
Strong market growth continues in low-carbon energy to meet
We’re increasingly seeing renewable developments being integrated
net-zero targets. According to BloombergNEF’s Energy Transition
into broader industrial developments. We’re uniquely positioned to
Investment Trends 2023, supply-side investment has reached
provide an integrated offering in more complex markets, combining
US$500 billion for the first time, with additional US$275 billion
our cross-sector expertise from mining, chemicals and fuels and our
investment in power grids. Most low-carbon energy technologies
offerings in environmental services and supporting infrastructure.
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 CASE STUDY | Low-carbon energy |
incentives. For example: Solar and energy storage
• the US Inflation Reduction Act (IRA) was signed into law in
August 2022 Enabling emerging technologies
• the EU Green Deal Industrial Plan launched in January 2023
in solar energy
• Australia passed legislation in September 2022 to achieve net
We’re supporting RayGen, an Australian technology
zero by 2050, with more aggressive targets for 2030 than the
provider, in partnership with Photon Energy, an EU-listed
previous government
renewable energy project developer, with their plans
• the UK announced its spring budget 2023 which includes to build a utlity-scale, grid-connected solar plant with
government’s support for CCS and nuclear a world-leading GWh-scale storage capacity in South
• according to BloombergNEF, as at January 2023, 42 countries have Australia. The Yadnarie project is on track for state and
published hydrogen strategies (vs 35 countries as at June 2022) grid connection approval.
• Germany held its first auction of its H2Global green hydrogen This project is the first of a growing pipeline of utility-
import scheme in December 2022. scale projects that will deliver RayGen’s groundbreaking
We’re focused on high-value market segments, including: solar-plus‑long-duration energy storage technology.
• low-carbon hydrogen and power-to-X (i.e. converting electricity We’re providing early engineering and FEED, supporting
into carbon-neutral synthetic fuels) RayGen to reach final investment decision. RayGen’s
technology combines high-efficiency, tower-mounted
• renewable energy – emerging technology, integrated projects at
photovoltaics with water-based long-duration energy
scale, offshore transmission and floating wind
storage and is backed by investment from AGL, Equinor,
• networks and energy storage – integrated projects, grid SLB, Chevron and Photon Energy.
connections of renewables and hydrogen
• nuclear - large scale nuclear and small modular reactors. UN SDGs:
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Overview Context & strategy Operating & financial review Financial statements
Unlocking hydrogen potential in the UK “This is a major milestone not only in the first stage of design
but also puts down another marker in Cadent’s ambitions
with Cadent Gas and efforts to transition the gas grid from natural gas to
We’re delivering a study for Cadent Gas (Cadent), as part of low-carbon hydrogen. We look forward to starting this
the East Coast Hydrogen Project (ECHP), to understand how journey with Worley, who shares our vision and strives for
to transition natural gas supply into hydrogen, including sizing a sustainable energy future,” says Adam Knight, Project
and routing of a pipeline that is to be converted from gas to Director at ECHP.
hydrogen service.
The project led by East Coast Hydrogen (ECH2) will connect
10 GW of hydrogen production from Humber and Teesside UN SDGs:
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, Business value drivers:
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.
Integrated gas
Our subsector, Integrated gas, includes all upstream and The Middle East is very active in gas-related projects. Both
midstream elements of the natural gas value chain from Saudi Aramco and ADNOC have active programs to increase gas
extraction, production through gas processing, storage, production capacity, with spend forecast to be above 2022 levels
liquefaction and regasification. It also includes the emerging by at least 50% for the next several years.
renewable natural gas. We see gas as an important bridging source There is strong demand for LNG regasification and midstream
of energy, which emits less carbon than most other fossil fuels.1 pipeline expansion in import markets, mainly fueled by the
Growth in integrated gas investment is primarily driven by return reduction in Russian gas to Europe. Germany contracted five
of activity levels following the global pandemic, energy security floating storage and regasification units (FSRU’s), and projects
impacts from the Russia-Ukraine conflict and global trends are underway to install this capacity. This will continue across
towards lower-carbon intensity fuels. Europe to ensure energy security in the medium term.
Rystad Energy forecasts a 29% growth in investment from Customers are responding to regulatory and social license
pre‑pandemic levels through to 2025, peaking at around pressures to decarbonize their operations. There is a particular
US$200 billion for several years. There may then be some focus on the most commercially viable carbon capture and
softening of investment through to 2030 but it is expected selective electrification projects.
to remain at or above 2023 levels.
Renewable Natural Gas (RNG) is a large and growing market.
Shell’s LNG Outlook 2023 forecasts strong economics to add RNG is biogas that has been upgraded for use in place of fossil
new LNG capacity over the medium term, where there are natural gas. The Global Newswire reported that this area is
low-cost, plentiful gas supplies. For example, Venture Global expected to grow at 28% compound annual growth rate (CAGR)
CP2 and Western LNG are progressing towards final investment over the next ten years. Developing technology and increasing
decision in 2023. the use of standardization and digital tools to improve yields
and economics will be key.
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Overview Context & strategy Operating & financial review Financial statements
UN SDGs: UN SDGs:
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Overview Context & strategy Operating & financial review Financial statements
Conventional energy
Global investment in upstream oil production increased in Rystad Energy predicts that future investments will likely be biased
FY2023, returning to pre-global pandemic levels in nominal towards lower-cost, lower-carbon intensity developments. This
terms according to Rystad Energy. offers greater resilience under varying energy transition scenarios.
Investment is expected to remain elevated in the short term, Our customers are looking for economic ways of reducing carbon
as producing nations and international energy companies manage intensity. We are advising them on decarbonization pathways that
the balance of near-term energy security and net-zero objectives. will address Scope 1 and Scope 2 emissions at production sites.
Medium and long-term outlooks are variable, depending on Key opportunities include efficiency improvements, reduction
various factors, including ongoing levels of low-carbon energy in venting, flaring and fugitive emissions of associated gas,
investment and electric vehicle adoption. electrification and decarbonization of heat and power through
In general, the European operators have been moving towards carbon capture or hydrogen fueling.
diversification and transformation into broader energy For example, we’re working with a US operator to apply carbon
companies, while the US operators have retained a strong capture and sequestration and hydrogen blending to existing
focus on decarbonization of their core upstream operations. cogeneration units and with a North Sea operator to electrify
offshore operations.
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Overview Context & strategy Operating & financial review Financial statements
UN SDGs:
Resources
The resources market continues to grow, driven by the demand Capital investment by our key customers is growing at a faster
for metals that are essential for the energy transition, the need to pace than the overall market, and our bookings indicate that we’re
decarbonize mining operations and a desire in western economies increasing market share across all our target markets. A key point
to bring greater diversity to the supply chain for critical minerals. of differentiation for us is our ability to offer a fully integrated
IEA’s Energy Technology Perspective 2023 estimates that service which minimizes interfaces and provides holistic mine to
US$450 billion of global investment is required between 2022 market solutions.
and 2030 for mining of critical minerals to achieve the target of We have a strong presence in all dominant mining jurisdictions
the Net Zero Emissions (NZE) scenario 2030. across the globe. In addition, we have existing offices in key
We continue to see strong investment in sustaining capital emerging areas, presenting growth opportunities in locations
across all commodities. There’s renewed confidence and such as the Middle East, North Africa and Central Asia.
activity in greenfield projects, particularly in copper, fertilizers We recognize that human rights is a risk issue for the resources
and battery materials. sector. We manage this risk by a rigorous process of customer
By the end of the decade we’ll be entering a tighter copper market. selection and through our dedicated program of work on human
Miners are strengthening their position in this market, evident by rights (see page 81).
the mergers and acquisitions activity across the industry. All our We continue to see exponential growth in the fast moving
major miners are focused on developing a pipeline of projects and subsector of battery active materials, which are key to large
prioritizing spend to meet this market. Greenfield investment is scale battery manufacturing. Importantly, we’ve taken a market-
being studied and brownfield capital is being accelerated to meet leading position in European cathode and anode production
future demand. We’re currently undertaking feasibility work on plants and have now successfully entered the North American
several large underground mines. market with our innovative delivery offering. We’re working
European markets have moved swiftly to decouple from the together with our customers to help secure a supply chain of both
supply of fertilizer products from Russia, which is driving strong raw and active materials as we deliver across the entire value
capital growth in phosphate production from Morocco, where chain of battery materials from mine, processing of brines and
our JESA joint venture with OCP is expanding. They’re moving ores, through to both cathode and anode active materials and
to decarbonize operations and improve water stewardship and recycling materials.
operational efficiencies. Across commodities, we’re assisting our customers to develop
The major iron ore companies continue to invest in replacement comprehensive roadmaps towards decarbonizing their operations
mines and associated infrastructure, with the additional spend and most notably we’re developing innovative cost-effective hybrid
associated with decarbonization of assets and improved water solutions to allow miners to accelerate electrification of haulage
stewardship across operations adding to our substantial portfolio fleets and reduce water consumption across operations.
of work with our customers in Australia.
US and EU policy settings for the critical minerals industry are
We’re using our regulatory, environmental and water
proving to be a catalyst for investment, with project developers
capability to help our customers:
from across the globe positioning strongly in these markets. The
• decarbonize operations
US Department of Energy has recently added copper to the critical
minerals list which will likely signal an additional shift in investment • provide greater water stewardship
towards this already key market. A large number of lithium refining, • invest in areas associated with their social license.
active materials and recycling opportunities are coming quickly
What often sets us apart from our competitors is our
to market. We’re well positioned to provide localized delivery
ability to offer our customers environmental and water
solutions to a broad cross section of customers in Europe, North
management solutions in conjunction with providing
and South America, and Australia across the entire value chain,
innovative process and process infrastructure solutions.
from mine to battery recycling.
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Overview Context & strategy Operating & financial review Financial statements
Setting the standard Bringing this world-class mine to fruition will help meet the
world’s ever-increasing need for food by mining polyhalite
for sustainable mining and producing and shipping POLY4, Anglo American’s flagship
We’ve been awarded the program management agreement multi-nutrient fertilizer product, across the world.
(PMA) for the entire scope of the Woodsmith Project - a POLY4 will allow farmers to maximize crop yields, increase
unique development comprising a mine site south of Whitby crop quality and improve soils with one simple product,
in North Yorkshire, with a 37-kilometer tunnel to transport naturally containing four of the six most important plant
a naturally occurring mineral, polyhalite, to processing and nutrients: potassium, sulphur, magnesium and calcium,
shipping facilities in Teesside. plus various micronutrients. The North Yorkshire coast
The mine has been designed to be sympathetic to its location contains the highest-grade resource of polyhalite anywhere
in the North York Moors National Park. The number and size in the world.
of buildings has been reduced to a minimum, which together To support safety, efficiency and flexibility, the operations will
with extensive landscaping and planting will ensure the be integrated and automated from mine to port. The PMA
site is screened and blends in with the surrounding area. follows our involvement in the study phase of the project
In recognition of the area’s sensitivity, mined ore will be and includes substantive terms to provide engineering,
transported underground to the materials handling facility in procurement and construction management (EPCM) services,
Teesside, ensuring that no mineral comes to the surface in the which will be completed under separate agreements as the
protected park. 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.
Unlocking one of the world’s largest Delivering water security for OCP
underground copper resources and the people of Morocco
Oyu Tolgoi contains one of the world’s largest known Through our JESA joint venture, established in 2010, we
copper‑gold resources. are delivering a fast-tracked desalination solution for OCP.
Our involvement with the Oyu Tolgoi Underground Project Morocco is facing critical water stress due to a severe
began in April 2015, when we provided mine restart support drought over the past two years. We’re working with
services. In June 2016, we were appointed to provide EPCM OCP, the world’s largest supplier of mined phosphate
services for Oyu Tolgoi’s materials‑handling systems and fertilizer products, to deliver their industrial water needs
associated surface and underground infrastructure. for the Safi and Jorf Lasfar sites and drinking water for
In 2023, the project celebrated the commencement of surrounding communities.
underground production from the mine. This achievement The first phase of the emergency water program
is testament to the collaboration of the project team to aims to deliver 110 million m3 per year to supply the
overcome some unique challenges, including working in a industrial water needs at the Jorf Lasfar and Safi sites and
harsh work environment with sub-zero temperatures, a supplement drinking water to El Jadida and Safi. It aims to
complex underground scope and collaboration between a supply the Khouribga site with 80 million m3 per year of
multilingual, multinational workforce. desalinated water via a 200-kilometer pipeline from Jorf.
Supporting social license drivers was another key The fast-tracked program focuses on using available
achievement. The project focused on diversity targets, with capacities or quickly deployable options (e.g. containerized,
women accounting for 28% of our workforce. In addition, the modularized skids). It maximizes the use of the existing
drive to maximize local resourcing resulted in over 90% of infrastructure in Jorf and Safi (specifically for sea water)
the construction workforce being Mongolian citizens. to feed the desalination units. It will progressively bring
Once fully operational, the underground mine will be the capacity online.
fourth-largest copper mine in the world, producing more A more ambitious water program has launched which
than 500,000 tonnes per annum of copper, a commodity aims to gradually increase desalination capacities to
essential for securing a lower-carbon future. 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:
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Overview Context & strategy Operating & financial review Financial statements
UN SDGs:
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.
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Overview Context & strategy Operating & financial review Financial statements
Our sectors
Energy Chemicals Resources
Producing energy from low-carbon Manufacturing, processing and refining Processing mineral and metal
energy sources (e.g. gas, wind, chemicals and fuels (e.g. renewable resources, including resources that are
solar, hydrogen) and conventional fuels, petrochemicals, polymers and central to the energy transition and
sources (e.g. oil). We also undertake specialty chemicals). resource projects related to water use
projects related to power generation, and re-use, the environment, transport,
transmission and distribution. ports and site remediation and
decommissioning.
Global earning base Regional aggregated Type of services (%) Contract type aggregated
and broad end-markets revenue (%) revenue (%)
provide diversification
and resilience
• High-value solutions
across the full life cycle
• Low-risk commercial
models
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Overview Context & strategy Operating & financial review Financial statements
We have minimal direct exposure to supply chain risk as we Costs: Our largest costs are people, technology, reimbursable
typically purchase materials on behalf of our customers. expenses and administration, which includes office leases.
We use a controlled framework to guide and determine Assets and liabilities: The significant items on our balance
the type of projects we bid and work on. This includes our sheet are mainly project related, such as trade receivables,
Responsible Business Assessment Standard. unbilled contract revenue, and provisions and borrowings.
We use a remuneration program for our Senior Leaders We hold several intangible assets, generated from previous
(aproximately 1,100 people) to drive our strategic objectives acquisitions. Our working capital is not capital intensive. Our
and transformation (see page 108). customers pay us at longer intervals than we pay some of our
Aggregated revenue and profit: We generate our sources of expenses (for example, people). This time difference, including
revenue and profit from many customers. As a result, we don’t the time from incurring costs to invoicing customers, makes up
depend on any one customer for a significant portion of our the majority of our working capital requirements. During the
revenue or profit. Aggregated revenue doesn’t include revenue current growth phase of the business, additional working captial
that has nil margin. (Revenue with nil margin typically relates to will be invested as the volume of work increases. We continue to
procurement revenue where we procure on our customers’ behalf, maintain discipline over managing this investment.
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.
Prudhoe Bay
Chaguanas
Bogotá
Altamira
Lima
45
Belo Horizonte
São Paulo Rio de Janeiro
countries Santiago
Buenos Aires
Bahía Blanca
48,200+
people
Altamira
Our workforce
Employee distribution by region Employees male / female
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Overview Context & strategy Operating & financial review Financial statements
Stavanger
Meerssen
The Hague Cologne
Arnhem Schkopau
Assen Schwarzheide
London Ludwigshafen
Aberdeen Kungalv
Glasgow Stenungsund
Copenhagen
Stockton
-on-Tees Plzeň
Ghent Assen Atyrau
Stockport
Antwerp Arnhem Sofia Almaty
Manchester Baku Tashkent
Hull Madrid Istanbul Beijing
Cádiz Tianjin
Grimsby Fahaheel
Bristol Casablanca Chengdu Nanjing
Cairo Basrah Shanghai
Leeds Manama
Al Khobar Dubai
Lowestoft Vadodara
Muscat Kolkata
Riyadh
Mumbai Pune
Doha Bangalore Hyderabad
Abu Dhabi Chennai Bangkok Manila
Lagos
Kota Kinabalu
Kerteh Kuala Belait
Kuala Lumpur
Miri
Singapore
Jakarta
Harare
Garbutt
Mackay
Johannesburg Exmouth Gladstone
Brisbane
Esperance
Perth Adelaide Newcastle
North Sydney
New Plymouth
Kwinana Portland
Christchurch
Bunbury
Ararat Auckland
Geelong Hastings
Melbourne Wellington
Tauranga
Whangarei
Permanent 74.8%
Temporary 25.2%
1.4 Review of operations We’re well positioned as a scalable business and continue to
benefit from our cost-savings initiatives. We’ve delivered our
We manage operations in two regions: the Americas as one target of $375 million annualized savings by the end of June 2023.
region and the combination of Europe, Middle East and Africa FY2023 costs in relation to this program have been less than
(EMEA) and Asia Pacific, Australia and China (APAC) as the other. half of FY2022.
This structure simplifies how we engage with our customers. It
allows us to collaborate across the business and bring the best The result for FY2023 was a net profit after tax, excluding the
of our capability to help our customers find solutions to their post-tax impact of amortization on intangible assets acquired
most complex challenges. When reporting these two regions, we through business combinations, NPATA, of $104 million, compared
disclose activities in three parts: the Americas, EMEA and APAC, with $243 million in FY2022. This was impacted by the loss on
and by three sectors: energy, chemicals and resources. sale of the North American turnaround and maintenance business,
including the impairment of purchased goodwill associated with
This year, we’ve seen activity accelerate as customers across it. Underlying NPATA was $348 million for FY2023, up 6% or
all our sectors have increased their capital investments. Global $19 million on the previous corresponding period.
challenges such as inflation and supply chain disruptions are not
currently causing many delays to projects. Our aggregated revenue increased by 21% to $10,928 million,
compared to $9,065 million in FY2022. This was supported by
We’re focused on providing a safe work environment, both growth in our regions, with the Americas aggregated revenue up by
physically and psychologically, for our office and field-based teams. 16% and EMEA and APAC up by 21%. For more information on our
We’re investing in our people to strengthen the Worley experience Finance value driver, see page 55.
and to attract and retain critical capabilities. Meanwhile, our
people’s transferable skills and development are enabling us Underlying EBITA of $635 million increased 16% compared to
to accelerate our work in new markets. Attrition and gender the prior corresponding period, predominantly driven by margin
disparity remain a key focus for continued improvement. For improvement. The underlying EBITA margin however decreased
more information on our people value driver, see page 74. slightly to 5.8% from 6.0% due to an increase in overall procurement
revenue which has more than doubled from FY2022 levels. Margin
We’ve enhanced our focus on areas such as modern slavery excluding procurement is 6.5% at FY2023 compared to 6.4% at
to combat issues all too prevalent in our industries. For more FY2022, which is in line with the outlook provided at H1 FY2023.
information on our communities value driver, see page 78.
Revenue %
Integrated gas2
26% 30% 4% 4%
46%
9% 10% 24%
Revenue %
3%
2% 2% 1.1% 2% 0.9% 0.7%
0.5%
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Overview Context & strategy Operating & financial review Financial statements
On a proforma basis (adjusting for the sale of the North American The statutory operating cash flow is $260 million versus the
turnaround and maintenance business) our EBITA margin excluding FY2022 operating cash flow of $316 million. Our cash conversion
procurement was 7% at FY2023. The main drivers of EBITA is 86.6% (adjusted to include working capital recovery for the
margin improvement were rate improvements and the increase of 1-month post-completion of the North American turnaround and
professional services work. With disciplined pricing, we’re seeing maintenance business divestment, $43 million, and prepayment
rate improvements continue to come through the backlog and this of software costs $25 million), which is in our 85% to 95% target
trend is sustained in the factored sales pipeline. range. The days sales outstanding (DSO) fell by 0.3 to 63.0 days
Our rate improvements were partially offset by growth costs, over FY2023.
which represent ongoing investment needed as we grow the Our capital management strategy is structured around funding
business, and the investment spend of $37 million for our strategic our growth and delivering increased value to our shareholders.
investment in targeted growth areas. This is part of a $100 million We’ve maintained our strong financial position through stronger
commitment to accelerate our transformation. liquidity, longer debt duration with lower maturity towers and a
Sustainability-related work has been a key driver of our growth. stable cost of debt capital. Our leverage is 2.2 times, down from
In FY2023, sustainability-related work represented 41% of our 2.5 times at 30 June 2022 and is at levels supportive of future
aggregated revenue. $4.5 billion of aggregated revenue was growth. We issued a new $350 million sustainability-linked bond,
from sustainability-related work, up from $3.2 billion in FY2022. and we renewed our syndicated debt facility at an improved
Sustainability opportunities represent 77% of our factored corporate margin.
sales pipeline (factored for likelihood of project proceeding and Our leading indicators show continued momentum. Our backlog
being awarded to Worley). See page 26 for how we define our and factored sales pipeline are increasing. Backlog is $14.1 billion,
sustainability‑related work. We’ve partnered with customers up 14%, compared to $12.4 billion at 30 June 2022 (excluding the
committed to decarbonization and we’ve embedded mitigating and sale of the North American turnaround and maintenance business).
adapting to climate change in the way we deliver work. For more Sustainability backlog has increased by 56% from FY2022. We’ve
information on our environment value driver, see page 67. 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.
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Overview Context & strategy Operating & financial review Financial statements
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
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
400,000 120,000
350,000
100,000
80,000
250,000
200,000 60,000
150,000
40,000
100,000
20,000
50,000
0 0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Financial year end
How we’re transforming to be net zero1
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
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).
2. 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.
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.
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Overview Context & strategy Operating & financial review Financial statements
1. We disclose the reporting criteria for select metrics in our sustainability basis of preparation.
2. 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.
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.
External audit
This year, we ran our Code of Conduct refresher training.
This reinforces our zero-tolerance approach to bribery, fraud,
The Worley Board is responsible for the governance corruption and modern slavery. It also outlines our data privacy
and oversight of Worley Group. The Board has adopted obligations and how to identify and report modern slavery
appropriate charters, codes and policies, and established concerns and sexual harassment.
a number of committees to discharge its duties.
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.
Audit and Nominations
We’ve also updated our Supply Chain Code of Conduct to cover
Internal audit
We report our performance transparently as part of annual reporting. This year, independent third-party auditors have provided limited
This constitutes our communication of progress to the United Nations assurance on our select ESG performance metrics (shown below).
Global Compact, to which we have been a signatory for 13 years.
This has been done in accordance with the International Standard
We also publish thematic and jurisdiction-specific reports on certain
issues including modern slavery and gender equality.
on Assurance Engagements ISAE 3000. This includes:
See our Corporate Governance site, Corporate Governance Statement • diversity (women employees, women Senior Leaders, women
and website for more information. Group Executives, women Board members)2
• safety (TRCFR, LWCFR, SCFR)2
Our Group’s ESG performance is governed at Board level. • environmental (energy use, Scope 1 and Scope 2 greenhouse
All standing committees have clearly defined remits and gas emissions)2.
charters. All Committees interface with ESG-related topics. All our sustainability disclosures undergo a comprehensive internal
In particular, the Health, Safety and Sustainability Committee preparation, verification and approval process. We have adopted
governs the Group’s health, safety and sustainability a process to verify material statements in these documents
performance. We introduce the individuals who make before they are released to the market. This includes a process
up the Board and their sustainability competencies in to verify key pieces of non-financial information as well as having
our Corporate Governance Statement. 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.
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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
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.
FY2023 FY2022
$m $m
Finance
FY2023 FY2022
$m $m Comments Movement
1. Aggregated revenue 10,928 9,065 We define aggregated revenue as: Our aggregated revenue increased by 21%
• our revenue and income calculated in FY2023 when compared with that in
in accordance with relevant FY2022, driven by volume growth across all
accounting standards three regions.
• plus our share of revenue earned by
our associates
• less procurement revenue at nil margin,
pass-through revenue at nil margin and
interest income.
2. EBITA (statutory) 345 449 EBITA means earnings before interest, Our statutory EBITA decreased by 23%
tax and amortization on intangible assets in FY2023 when compared with that
acquired through business combinations. 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.
(underlying) 635 547 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.
3. NPATA (statutory) 104 243 NPATA means net profit after tax and before Our statutory NPATA decreased by 57%
amortization on intangible assets acquired in FY2023 when compared with that in
through business combinations. FY2022.
(underlying) 348 329 Our underlying NPATA increased by 6%
in FY2023 when compared with that in
FY2022.
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Overview Context & strategy Operating & financial review Financial statements
Finance
Americas FY2023 FY2022 Variance%
The Americas region, comprising the United States, Canada and Aggregated $m 4,846 4,187 15.7
Latin America, reported aggregated revenue of $4,846 million and revenue
segment EBITA of $297 million (FY2022: aggregated revenue of Contribution % 44 46
$4,187 million and segment EBITA of $271 million). The Americas to Group
EBITA increase was driven by an improved second half with a ramp aggregated
revenue
up of key projects and improved margins in professional services
from the first half. The segment margin excluding procurement Segment $m 297 271 9.6
EBITA
decreased to 6.6% from 6.7%. The Americas margin excluding North
Segment % 6.1 6.5
American turnaround and maintenance business is 7.8%.
margin
Segment % 6.6 6.7
margin
(excluding
procurement)
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Overview Context & strategy Operating & financial review Financial statements
We leverage our global knowledge, technology and data to bring value for our
customers anywhere in the world.
of engagements and projects each year, to create value for Our acrylics/oxo-alcohol project in India won a RoSPA
our customers. Gold Award in 2023, one of the most prestigious
and internationally recognized awards in the field
Knowledge,
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Overview Context & strategy Operating & financial review Financial statements
6,600+
competitive edge.
In the last 12 months, Replic8 has delivered:
• 60,000+ drawings
• 3 million+ updated data points people in our India offices, up from 5,600+ in last year
• 50,000+ hours saved.
7.8 million+
“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.”
FY2023 GID hours, up from 6.6 million in FY2022
- Worley customer
4,500+
projects supported via GID working with over 95 other home
offices in FY2023
Energy systems continue to change and consumer demands are and plants. To meet the new and evolving needs of our customers,
shifting. In an ever-evolving world, meeting global sustainability we evaluate how to expand and diversify our technology portfolio
Knowledge,
goals requires us to continually develop our technology. Through with novel solutions. This is a natural way to further monetize
our technology business, ventures and products, we provide our expertise.
solutions that transform challenges into opportunities. Our suite For example, we’ve continued to develop our pseudo dry gas
of technologies turn ideas into reality and support our customers technology through FY2023, and we expect this technology
from conception to completion and beyond. By diversifying will be ready for commercial deployment in FY2024.
operations and emphasizing technology development, we
empower our customers to work more efficiently and adapt
to change.
Comprimo® awarded licensor services for onshore
Our Chemetics® and Comprimo® businesses are crucial in our
gas plant
efforts, delivering proprietary technology solutions to multiple
sectors worldwide. For more than 60 years, we’ve used our Comprimo® has been awarded licensor services to
technologies to reduce environmental impacts and health deliver gas treating and sulphur recovery technology
concerns associated with sulphur emissions by converting them by PTTEP HK Offshore Limited for its new Onshore
into essential products. More than 60% of the existing sulphur Gas Plant. This new plant will be part of the Sarawak
recovery units across the world carry a Worley Comprimo® design integrated sour gas evacuation system project in Bintulu,
license. Reducing sulphur emissions has important implications, Sarawak, Malaysia.
such as reducing acid rain and respiratory illnesses, and improving The services will be provided by our teams in the UK and
air quality. We’ve provided ongoing support for decades to ensure the Netherlands, with support from our GID team.
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
5,000+
globally installed units of Chemetics
from entering the atmosphere from new proprietary equipment
licenses sold in FY2023
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Overview Context & strategy Operating & financial review Financial statements
3.2.3 Digital and data analytics Our Digital Experience Center was a key focus this year. We have
teamed up with strategic technology partners to develop digital
Our data-centric and digital technology-enabled future helps connect solutions in sustainability, new energy and data-centric delivery.
Digital innovation This year, we’ve worked with our customers to increase the use of
Our digital innovation team uses emerging technologies to solve digital twins with operations and maintenance teams. These digital
business problems. We’re using an established framework, replicas of physical systems allow teams to leverage real-time
internal expertise and technology partners to add value to our insights for smarter decision-making.
customers. Since its inception in January 2023, the team has This year, we launched our first Scope 3 emissions monitoring
completed four internal pilots and minimum viable product project in partnership with a leading European battery
development for new technology. manufacturing operator. This project underscores our commitment
to aligning our operations with global climate goals.
3.2.4 Cybersecurity, data protection and Information Security Management System (ISMS)
incident response Our ISMS is ISO 27001 certified, which covers the management
of our IT infrastructure, operations and data center services.
technology and data
The objective of our strategy is to protect our own data and our security requirements for our activities and contains the policies,
customers’. We’ve based our strategy on the National Institute processes, standards and procedures required to implement them.
of Standards and Technology (NIST) Cyber Security framework We publicly disclose our information security and data protection
and the Australian Cyber Security Centre Essential Eight Maturity policies on our corporate governance site.
Model. We continue to evolve our program to stay ahead of the
To make sure our control environment is transparent and robust,
curve in the ever dynamic cyber-threat landscape.
independent internal and external parties continually monitor
Information security and cyber risk governance and assess our ISMS and audit once a year. They also test our
The Chief Information Security Officer (CISO) leads our Information independent controls multiple times a year.
Security and Cyber Risk Management Program and Strategy. Incident response
The CISO reports to the Group Executive Director, Information Our Cyber Security Operations Center follows a formal and
and Digital Delivery. Information security key risk indicators are documented incident response plan, which contains clear
presented to the Audit and Risk Committee and our Executive escalation procedures. We have multiple standard operating
Group regularly throughout the year. Detailed reports on procedure documents that enable us to respond to specific types
information security and disaster recovery are also presented. of attacks or incidents. We partner with top-tier cybersecurity
We disclose the experience and skills of the Board in our firms to test these processes at least five time per year. We also
Corporate Governance Statement. have an internal ethical hacking and threat intelligence group that
We run an awareness program for our people, which includes run monthly tests and preparation exercises.
yearly mandatory training on our cybersecurity policy, email
phishing campaigns and Yammer posts, as well as customer
training programs and other initiatives.
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Overview Context & strategy Operating & financial review Financial statements
Equipment and
fabrication
maintaining equipment and assets for the energy, chemicals and resources sectors.
Ensuring safety and quality in construction In the Americas we continue to provide field services in projects,
fabrication and construction. We have more than 2,000 people and
We capture any defect- and safety-related rework through our
four fabrication locations.
assurance system via non-conformance reporting. Considering the
amount of non-conformance that is reported, we do not consider 3.3.3 Our delivery centers
associated costs to be a material figure.
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.
facilities. Our fabrication work is mostly lump sum. The remainder and building assets for offshore industries, Rosenberg has a
fabrication
of our people are across sites, mostly industrial facilities. These strong focus on new markets, including offshore floating wind,
include welders, pipers and electrical and instrumentation electrification and hydrogen. In FY2023 we:
technicians. 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
Proactive and meaningful Indigenous engagement Energy’s two Gjøa platform tie-back projects
WorleyCord is working with our customers to provide • added a hands-on hazard hunting exercise via our Certified
meaningful engagement with Indigenous, local and Training Center
diverse communities prior to mobilizing onto any
• installed 1,020 solar panels on our main office building.
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.
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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,
Environment
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.
FY2023 sustainability-related work1 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.
Environment
4%
In the longer term (2025-2030), we will focus on the global
10% decarbonization of our vehicle fleet and heavy equipment, and
Feasibility
phasing out natural gas for heating where possible.
FEED
16% 47% Detailed design Achieving our net-zero Scope 1 and Scope 2 target has several
Construction uncertainties, including the ability to procure zero-emissions
& commissioning electricity, heating and cooling, the accessibility of zero-emission
Operations vehicles and charging infrastructure, and the ability to source
& maintenance
23% 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.
Embedding climate thinking in the way we deliver work Where available, we work closely with local teams to implement
Our Safe and Sustainable Engineering for Asset Lifecycle (SEAL) these initiatives. We expect that sourcing these options will
Framework guides us to deliver safe and sustainable engineering become more accessible as we get closer to 2030, however, it is
outcomes to our customers. likely we will not be able to remove all of our Scope 1 and Scope 2
This year, we expanded our Sustainable Design (SD) pillar and emissions. We will offset these residual emissions using high
trained our people to deliver more sustainable outcomes on quality carbon credits to achieve net-zero Scope 1 and Scope 2
every project. Some of our SD resources include: emissions by 2030.
Environment
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: Detailed disclosure:
a. describe the board’s oversight of climate-related risks and opportunities • TCFD report
b. describe management’s role in assessing and managing climate-related risks and opportunities. Other key resources:
• ESG performance summary
Our response:
(see page 52)
Our business model, purpose and ambition are centered around sustainability, decarbonization and the energy • Directors’ Report
transition. We have a strong governance structure to oversee our approach, including climate-related risks and (see page 96)
opportunities. This involves members of the Board and senior management, who oversee our climate change response.
• Corporate Governance
Board standing committees relevant to climate-related risks and opportunities include the Health, Safety and Statement
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.
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)
including a 2°C or lower scenario. • Climate Change Position
Statement (see page 67)
Our response:
• CDP submission
Each year, we identify and manage these risks and opportunities over the short, medium and long term. We use our • Strategy and sector outlook
enterprise risk management process to identify financial and strategic climate-related impacts across all our operations. (see page 24)
We have a range of climate-related risks and opportunities relevant to our business.
Climate-related Increasing our efforts to mitigate and • Growth in lower-carbon products and services
opportunities adapt to climate change and capturing • Businss growth in emerging markets
building market demand. • 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.
Risk management
TCFD recommendation: Detailed disclosure:
Environment
a. describe the organization’s processes for identifying and assessing climate-related risks • TCFD report
b. describe the organization’s processes for managing climate-related risks. Other key resources:
• Risk management
Our response:
(see page 86)
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.
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.
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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
Environment
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 customers • Climate change Partner with industry coalitions Update our management
Seek positive (see our CCPS) systems and project
Educate and build
outcomes for • Land use change frameworks to further
awareness internally
nature through • Resource exploitation integrate nature, including
Identify mechanisms that the social-nature nexus and
how we deliver • Pollution support nature in project delivery rights of First Nations peoples
work for our
customers
FY2027+
Improve
and adjust
Our business • Climate change Begin phasing out the Complete our FY2025
Minimize the (see our CCPS) provision of single-use plastics single-use plastics
impacts of our • Resource exploitation commitment
Develop reduction targets
operations • Freshwater use for water and waste intensity Water and waste
on nature • Pollution management
• Fabrication yard waste
• Single-use plastics
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.
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.
• Environmental management • Camp accommodation facilities • Hazardous substances and • HSE decommission and
• Environmental plan • Site traffic management dangerous goods demolition
• Air quality control • Barricade hoarding and barrier • Chemical communication
• Liquid effluent and discharge • Occupied facility siting • Hazardous chemicals
control • Field HSE induction orientation information
• Waste management • Site-specific HSE induction • Asbestos containing materials
• Site-specific HSE orientation • Working with radioactive
materials
• Management of naturally
occurring radioactive materials
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Overview Context & strategy Operating & financial review Financial statements
Environment
provision of single-use plastic in all our owned and managed sites scarcity poses a potential risk to our business.
by end of FY2025.1
Our plan was guided by the draft recommendations of the Extremely high Low
TNFD and its mitigation hierarchy. We’ll use a three-step
scheme to make decisions, comprising the principles of avoidance, 18%
reuse and substitution.
High 42%
Whilst we endeavour to avoid single-use plastics whenever 12%
possible by the end of FY2025, in cases where we can’t, we’ll
select a substitute sustainable material, where available.
This year, we: 15%
Medium-high 13% Low-medium
• 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
Each time we lease a new building, we review its sustainability
globe. Their role is to help build awareness and provide location-
features. This review includes water efficiency considerations.
based tools to manage this change and measure the phase-out
We’re working to occupy sites that are water efficient through, for
throughout the company
example, a focus on water-efficient appliances.
• took actions in pilot locations, commencing the phase-out of
Waste management
single-use plastic at our London office.
Our fabrication yards in Canada, Norway, the US and the UK are our
Our primary focus for FY2024 will be on countries with the most most significant locations when it comes to waste generation.
sites and pre-existing plastic regulations. These include Canada,
Australia, the UK, the US and New Zealand. 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 FY2022 FY2023
Total water withdrawn (ML) 592 539
Freshwater withdrawn in regions of high 134 128
or very high water scarcity risk (ML)2
Total waste produced (t) 15,729 13,119
Hazardous waste produced (t) 652 298
Waste recycled (t) 5,404 3,423
1. We define single-use plastics as plastics that are used once, or for a short period of time, before being discarded.
2. 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.
3.5 People
Our people business value driver refers to energized and empowered people with the capability and
People
experience to deliver our purpose. Our people are at the center of what we do.
3.5.1 Health, safety and well-being We recorded strong physical safety performance in FY2023. We’re
deeply saddened to have lost a member of our team through a
Well-being work-related fatality this year. One of our people was killed in a
Our well-being strategy focuses on creating healthy people, commercial plane crash in Tanzania whilst travelling to site.
environments and relationships. This year, we’ve solidified our Management system
existing foundations, taking targeted actions across four areas. Our Life approach includes a safety, health and well-being
Psychological safety management system. Our people work across different
Psychological safety fosters an inclusive workplace culture, environments including managed sites, customer and joint-venture
empowers our people, inspires innovation, creativity and ideas, and managed sites, remote working, working from home, virtual
enhances employee engagement. operations and global delivery.
We’ve started embedding psychosocial factors into our health and We continue to uphold the minimum standards that the Worley
safety framework and align with ISO 45003 psychological health management system must meet. Our management system is
and safety at work standard. This will extend into FY2024, as we certified to ISO 9001 and parts of our business hold ISO 45001
strengthen our Life Programs to provide our people with the tools to certification. We conduct third-party audits of our management
identify and manage psychosocial risks in their work environment. systems and metrics.
In step with our focus on psychological safety, we have Our expectations of contractors
established a dedicated program of work on human rights When it comes to safety, health and well-being, we hold
(see page 81). contractors to the same high standard.
Education, training and communications When we consider project risks, we look at how we manage
Our Mental Health Champions network continues to grow, contractor health and safety. It’s important to get the messaging
with 307 Champions in over 31 countries. We explored what right at the start and set the right culture. We invite our contractors
psychosocial safety means in practice through Mental Health to take part in our Life programs such as Life conversations, Take5
Week 2022 and Safety Week 2023 and will continue to develop this for Safety, Life-saving rules and the White Hat Program for site
work. supervisors.
Leadership, policy and culture Safety performance
We built a formalized global committee for well-being, with a Indicator1 FY2022 FY2023
defined purpose and KPIs, overseen by an executive sponsor. TRCFR (total) 0.16 0.14
We’re helping our managers support well-being. We’ve been Company employees 0.13 0.12
delivering mental health resources for our managers through Contractors and sub-contractors 0.21 0.18
our Employee Assistance Program, eLearning platform and pilot Partners and customers 0.06 0
workshops. LWCFR (total) 0.04 0.03
Our Ambassador program includes a well-being assessment and Company employees 0.03 0.03
establishes a support network in each location. We’ve piloted Contractors and sub-contractors 0.06 0.03
the program in South Africa and plan to roll it out to nine more Partners and customers 0 0
locations by the end of FY2024. SCFR (total) 0.06 0.03
Maximizing and leveraging our rewards Company employees 0.05 0.03
We launched our global recognition program, Appreciate. This Contractors and sub-contractors 0.07 0.04
gives people an opportunity to shine a light on their colleagues Partners and customers 0.06 0
when they see our values and behaviors in action. So far, we’ve Fatalities (total) 0 1
seen 32,111 recognition moments. Company employees 0 1
Physical health and safety Contractors and sub-contractors 0 0
Our commitment to safety is underpinned by our Life value, which Partners and customers 0 0
encourages people to be curious, speak up, act and share lessons.
1. We disclose the reporting criteria for select metrics in our sustainability basis of preparation.
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Overview Context & strategy Operating & financial review Financial statements
People
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, During FY2023, we activated our leadership principles: create
wage growth and some key skill shortages. Despite this, our meaning, embrace possibility and deliver what matters. These
attraction efforts remain focused and effective. Our time to hire principles outline our expectations of leaders and help them
has remained relatively steady through FY2023. bring our purpose, ambition and values to life and lead through
We reward our people’s contribution and achievements through our transformation.
our Appreciate Program. We have invested in strengthening our Each principle is underpinned by habits that build inspirational
employer brand and telling our story in a way that attracts people leadership. To bring them to life, close to 900 leaders from
who are energized by our purpose and ambition. This is particularly 41 countries took part in a Leadership Wave Experience from
important in a challenging labor market. October to December 2022. This helped leaders:
We’re also turning our attention to becoming a skill-powered • understand and experience the leadership principles
organization. When skills are central to how we think about roles • become clear on their role in activating these principles.
and people, it opens new opportunities for reskilling and career
The overall feedback on the experience was encouraging, with
mobility. It also brings a new perspective to how we help people
continued visits from our leaders to our leadership online tools.
see ways to apply their skills in energy transition opportunities.
We’re also reimagining our approach to leadership development
We also are investing in pilots to strengthen the identification of
and building opportunities that are:
our talent and obtain more insights on their performance, potential
and readiness for new experiences and opportunities. • personalized: offering people the choice to learn what they need,
when they need it and in a variety of formats
Our culture is a key enabler of our growth and strategy and we’re
• stackable: where they can take advantage of smaller, learning
focusing on behaviors that will help achieve our ambition. We’re
moments to add to their toolkit
also focused on well-being and making sure we provide the best
experience to attract and retain the right people (see page 74). • 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.
training program in Australia during FY2023 in conjunction with that’s flexible, accessible, sparks curiosity and builds the skills and
digital coaching prompts.1 experiences that make our people future fit.
These prompts combine behavioral-science insights with the latest In February 2023, we launched our new Learning at Worley
technology to create a new kind of coaching experience for leaders. initiative. Our eLearning platform, powered by Go1, offers learning
The results of our pilot show that: modules that our people can access anywhere and anytime. To
date, our people have completed over 26,000 learning modules
• managers who acted on the nudges saw higher levels of
with over half of our learners completing more than two modules.
happiness, retention and connection with our values within
their teams Learning at Worley gives access to a range of learning areas,
specializations, Worley-created content, compliance training and
• managers who used the platform improved across the
records all in one place.
leadership principles
• employees indicated that 15% of managers became more We continue to build the sustainability and digital competencies
effective in the six months of using the nudges. of our people through our Transformation Program. We’ve now
issued over 44 thousand sustainability learning accreditations,
Our leaders’ engagement with prompts was within the top covering topics such as green hydrogen, offshore wind and
quartile across our partner platform’s customer base. environment and society consulting.
We intend to expand the prompt platform to all our leaders over Digital and data informed
the coming years.
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 FY2022 FY2023
Training and development
Digital learning accreditations issued (total) 21.7k 41.8k
Sustainability learning accreditations issued 10.5k 44.7k
(total)
Workforce training on data privacy 85 98
(% of total workforce)
Other
Utilization (%) 90 90
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.
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Overview Context & strategy Operating & financial review Financial statements
3.5.3 Diversity and inclusion We remain challenged on our progress of increasing the percentage
of women Senior Leaders. We’re currently reviewing our approach
Building safe, respectful and compliant workplaces and resetting our priorities. Attracting women into core business
People
We’ve strengthened our approach to building a safe and respectful roles such as project delivery remains a significant challenge to
workplace for everyone. This is key to empowering our people. Our which we’re applying strategies to improve. We are now resetting
Respect at Work project focuses on preventing and responding to our approach through adoption of a more evidenced-based
sexual harassment and harmful behaviors in the workplace. The approach to representation. We are focusing on current, effective
Respect@Work framework, recommended by the Australia Human interventions grounded in behavioral science.
Rights Commission, guides our roadmap. This roadmap has three During the year, we addressed gender pay gaps during our annual
streams of work: salary review process and intend to continue with this approach.
• leadership and culture We’re training our leaders on how to reduce bias when making
• report and support remuneration decisions.
• risk and assurance. Pay equity remains an area of focus in our remuneration approach
and we apply learnings from our reporting in various jurisdictions.
Under the people components of the plan, we developed
We released a pay equity learning module for all our leaders. It is
initiatives to implement across FY2023 and FY2024:
designed to improve their understanding of pay equity and the role
• a new Respectful Behavior Policy, promoting positive they play, and equip them with the tools to support them making
workplace behavior better informed pay decisions.
• a revised Code of Conduct training, which includes a specific
module on sexual harassment
We are proud to continue our involvement
• dedicated training for all our people: employee upstanders
‘speak up’ (prevention) and leadership (response) with the Champions of Change Coalition
• an enhanced governance framework, with a new Human Rights in Australia.
and Diversity and Inclusion Council to oversee the program As part of this, we co-sponsored Shifting Expectations, a report on
• a trauma-informed and people-centered process for how more flexible frontline roles benefit business and diversity. Our
responding to workplace sexual harassment representative, Gillian Cagney, President ANZ, attended the United
• specialist training workshops for our People and Nations Commission on the Status of Women 67th Session in New
Compliance teams York as part of the Champions of Change Coalition. During the
session, Gillian contributed to round table discussions and shared
• system updates to enhance our ethics reporting portal
gender equality practices.
• increased support with our Employee Assistant Program (EAP)
partner and
• group-wide communications to promote awareness. Reconciliation and cultural engagement
As an ASX-listed company with a large geographic spread, race,
The importance of our People Network Groups
ethnicity and cultural issues vary where we operate. Our approach
Our People Network Groups (PNGs) continue to create is specific to both our business and our locations (see page 84).
opportunities for our people to build awareness and create
community. These PNGs are key to our culture and contribute to a Gender performance
workplace where everyone feels welcome. Indicator1 Targets FY2022 FY2023
Board 30% women by Achieved (33%) Achieved (33%)
Continuing our focus on gender
FY2025
We’re pleased to have maintained our targets for women on the Group Executive Retain gender Achieved (45%) Achieved (45%)
Board and within our Group Executive. This year we’ve improved diversity by FY20252
the gender balance of our graduates and our intake in FY2023 is Senior Leaders 20% by FY2025 16% 16%
48 %, up from 47% in FY2022.
Graduate intake 50% by FY2025 47% 48%
Entire workforce3 – 18.6% 20.8%
1. 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.
2. Gender diversity is defined as 40% women, 40% men and 20% either women or men or other.
3. 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.
3.6 Communities
Our communities business value driver refers to strong relationships within our sectors - with our people,
Communities
customers, investors, communities and governments - building trust and license to operate.
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3.6.2 Ethics and integrity Our independent Internal Audit function reports directly to the
Board Audit and Risk Committee (ARC). We present an internal
Our business audit plan to the ARC for approval annually. We report the results
Communities
Our Code of Conduct establishes our commitment to high of audits bi-monthly to the ARC and track recommendations
ethical standards and complying with the law. It applies to all until they are implemented. If overdue, we flag these to the
our people, Board members and other parties as defined in the ARC accordingly.
Code. The Code is available in 16 different languages. Our people An audit or control self-assessment reviews all operations
must confirm in writing that they have read and understood it annually. We fully audit key functions and controls within
during their annual refresher training. We have zero tolerance a three‑year cycle. These include, but are not limited to,
for bribery, fraud and corruption. We have a conflict of interest, anti‑bribery and corruption, sanctions and trade compliance
gifts and entertainment declaration platform to manage the and modern slavery. All audit scopes include relevant ESG and
requirements of the respective policies. compliance components.
We launched our Code of Conduct refresher training in April 2023 During the execution of internal audits, we perform a control
with 43,800 of our people having completed this at the end of culture survey. The survey involves all employees within
FY2023. This covers our expectations about avoiding conflicts operations and investigates the culture behind key controls and
of interest, zero tolerance for bribery, fraud and corruption, data behavioral expectations. It assesses areas of ethics, safety and
privacy obligations and modern slavery. It outlines how to identify risk management and awareness of other internal controls.
and report modern slavery concerns and sexual harassment. We report the results to management and the ARC.
Our people (as well as former employees, their families, suppliers,
Our customers
partners and customers) can report breaches and unethical
behavior to our Ethics Helpline. Our team has performed our due diligence process, with the
number of checks conducted relatively stable compared to
Our Ethics Helpline is available 24 hours a day, seven days a week. FY2022. To make our due diligence more effective, we use
Our Whistleblower Policy encourages people to come forward with third‑party research tools and external analysts
information relating to breaches and potential breaches of our when appropriate.
Code of Conduct.
Our sales and due diligence teams maintain centralized
Our key policies to promote ethics and integrity include: communication to quickly identify and address any potential
• Agent Standard – guidance for dealing with all agents, our issues We’ve also incorporated location-based alerts that
expectations, and monitoring and compliance with Worley’s notify our sales team of any compliance concerns. This allows
Code of Conduct us to offer immediate guidance and support.
• Anti-bribery and Corruption (ABC) Policy – defines bribery When we encounter red flags related to bribery, corruption, human
and outlines our expectations of our people and partners, and rights, sanctions, serious negative media and modern slavery,
methods to prevent bribery and corruption we escalate the matter to senior management. We then obtain
• Anti-competition Policy – defines anti-competitive behavior and specific approvals before continuing with the bid submission.
how to avoid it Our Responsible Business Assessment (RBA) Standard provides
• Employee Conflict of Interest Standard – sets the requirements a framework to assess which projects we bid for and execute.
around disclosure of actual and potential conflicts of interest and We embed the RBA’s decision-making principles into our sales and
gives guidance to prevent / mitigate them risk management processes. Projects of high risk (including ESG
• Facilitation Payment Standard – prohibits facilitation payments risks) are escalated to our Group Executive for decision-making.
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.
updated our Supply Chain Code of Conduct. This outlines our ventures. These include due diligence, consultation and
expectations for our suppliers, and we make it readily available approval requirements, policies and procedures and the ongoing
to them. It covers a range of sustainability-related topics of requirements for governance during the operating phase of the
importance to us. We remain accountable to the same standards joint venture. We require all our joint ventures to complete a risk
that we expect from our suppliers. You can find the Code on our and compliance checklist annually.
Corporate Governance Site. Ethics performance
Our compliance teams review our suppliers for any risks of bribery, Indicator FY2022 FY2023
corruption, modern slavery, human rights and trade sanctions. Ethics helpline
They report negative findings to the procurement teams, who then
Reports in progress 30 13
work with the supplier to mitigate the risk appropriately. We’ve
Reports partially or fully substantiated 61 70
also updated our supplier pre-qualification questionnaire to include
Reports unsubstantiated 89 117
ESG-related criteria.
Total number of reports 180 200
Due diligence checks
Customers 4,335 4,313
Suppliers 6,660 5,498
Other partners1 83 112
Business involvement in countries with significant corruption risk 2
1. Due diligence checks on other partners, such as agents, joint ventures and sponsorship opportunities.
2. 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.
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3.6.3 Human rights and modern slavery We embed our commitment to human rights in the following
policies and standards:
Our approach
• Human Rights Policy
Communities
Respecting, protecting and promoting human rights is fundamental
• Modern Slavery Policy
to delivering a more sustainable world. Our commitment to human
rights encompasses our people, those we partner with, our supply • Code of Conduct
chain and the communities in which we operate. • Supply Chain Code of Conduct
We support the protection of internationally proclaimed human • Whistleblower Policy
rights, as set out in the United Nations Universal Declaration on • Health, Safety and Well-being Policy
Human Rights. We are guided by the UN Guiding Principles on • Diversity and Inclusion Policy
Business and Human Rights (UNGPs) in our business practices.
• Indigenous Peoples Engagement Policy
As a signatory to the United Nations Global Compact, we also
• Sustainability Policy.
acknowledge the principles set out within the International
Labour Organization’s Declaration on Fundamental Principles and Significant risk areas
Rights at Work. We use these principles as a guide to improve our Risk identification
responsibilities to protect, respect and promote human rights. We operate in some industries and geographies that are
We collaborate across industry to improve worker welfare. We’re considered high risk in terms of human rights and modern slavery.
a member of Building Responsibly, a voluntary global set of Some of these include risks to our people, services and customers,
principles that advance the safety, security and welfare of all and risks in our partnerships, particularly joint ventures.
people working in the engineering and construction sector.
We disclose detail of these risks in our annual Modern Slavery
Governance Statement. We’ll publish our third Group Modern Slavery Statement
We outline our commitment to respecting, protecting and later this calendar year.
promoting human rights in the Group’s policies together with Risk management
our governance framework. Human rights are governed by our
Our policies, procedures and practices underpin how we manage
Executive Human Rights and Diversity and Inclusion Committee,
our risks. These include our Group Code of Conduct, Supply
the Health, Safety and Sustainability Board Committee and the
Chain Code of Conduct, contract risk processes, enterprise risk
Worley Board, who are ultimately accountable for our approach to
management, quarterly risk reviews and our risk and assurance
human rights.
frameworks.
Action
Modern Slavery Diversity and Sustainability A A A
Working Group Inclusion Working Group Working Group Company A Affected
person
Third-party Affected
person
Third-party Affected
person
Commit Assess
Organizational commitment Risks to people and
and accountability to opportunities to improve We’re proud to be taking
respecting, protecting and conditions part in the UN Global
promoting human rights Compact Business and
Act Human Rights Accelerator
Improve program. This is a six-
Integrate proactive
month program that
Continuous evolution of prevention and remedial
supports our commitment
best practice action
to action on human
and labor rights and on
Report Monitor
establishing effective due
Transparent communication Measure and track
diligence processes.
on progress effectiveness
Commit 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.
Assess 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).
Act 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).
Monitor 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.
Improve We continually evolve our approach through regular review of our program and commitment, and improved reporting.
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and shared value The Worley Foundation provides help to our people and
communities, making a positive social and environmental impact
Communities
We have a global presence and strive to build stakeholder trust where we operate. This year, we are supporting 21 organizations
and social license across the communities we operate in. We do which were nominated by our people across the world. These
this through: organizations work every day to advance STEM education, skilled
• our government engagement volunteering and environmental and community benefits.
• our commitment to transparent reporting To keep our partnerships with organizations successful and free of
• the Worley Foundation and STEM engagement programs ethical concerns, we undertake a thorough due diligence process.
This involves assessing each organization and potential risks. We
• our partnerships with First Nations groups in Canada
also evaluate the outcomes of all funded projects. This includes
and Australia.
examining the progress, achievements, community development
We also help our customers create social value. We continue and skilled volunteering.
to target community engagement and First Nations social
investment activities for our customers. STEM outreach
We began our global STEM campaign in early 2022 to promote
Government engagement
STEM as a career path within local communities.
We engage in political and public policy matters that impact
We continue to expand our network of ambassadors and
our business. We engage in an open, responsible and
volunteers who encourage and support STEM learning. We’ve
evidence‑based manner.
partnered with schools, colleges, universities and community
We contribute to discussions that are aligned with our business groups to share our STEM expertise and knowledge. Our STEM
and industry interests, which benefit a range of stakeholders events and activities include engineering workshops, mentoring
including our people, investors, communities and our customers. programs and career events.
We are also members of various trade and membership based To succeed in the energy transition, we need to inspire a strong
organizations which engage with governments on issues relating pipeline of diverse talent.
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.
Reconciliation Action Plan (RAP), we’re now finalizing our ‘Innovate’ The Worley Foundation
RAP, which will publicly state how we will increase First Nations Organizations pledged to support 16 21
engagement and participation. To achieve this, we’ve: Corporate financial donations1
• established a RAP Working Group and RAP Champions to Non-legislated contributions ($) 1,397,483 1,359,475
drive delivery and implement the ‘Innovate’ RAP Legislated contributions ($) 855,406 892,880
• targeted First Nations career and graduate programs Total contributions ($) 2,252,889 2,252,355
Direct economic value generated and distributed
• trained our sales, contracts, procurement and project
teams to identify First Nations suppliers to grow Indigenous Economic value generated and received ($m)2 9,863 11,137
• implemented the outcomes of the Minderoo Foundations’ Distributed to our other stakeholders ($m)3 9,552 10,908
Woort Koorliny: Australian Indigenous Employment Index 2022 Economic value retained ($m)4 49 -33
National Report, which highlighted focus areas that we could Economic value generated and distributed ($m) 9,814 11,170
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
Tłegǫ́hłı̨ Reclamation Services. 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.
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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.
First line – risk ownership Second line – risk enablement Third line – risk assurance
The business and all employees Group functions Internal audit and third-party
Responsible for owning, Support to first line and provide audit providers
managing and reporting risk independent challenge. Risk group Responsible for independent
in their operations and ensuring responsible for risk framework and assurance on effectiveness
controls are in place. policies to enable a consistent of the control environment in
approach to risk across the Group. relation to risk materiality.
Engage, consult, communicate | Set objectives and context | Identify, analyze, evaluate
Risk process
Innovate, plan, act | Monitor, review, report | Learn, improve, perform
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Short term (1 to 2 years) S Our short-term horizon is focused on the immediate financial planning period.
Medium term (2 to 5 years) M Our medium-term horizon is focused on our strategic business plan in line with our ambition.
Long term (5 to 10 years) L Our long-term horizon is focused on global trends and our net-zero aspirations.
Our opportunities
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Our threats
90
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92
Overview Context & strategy Operating & financial review Financial statements
94
Overview Context & strategy Operating & financial review Financial statements
Financial Report
Directors’ Report 96
Consolidated statement of financial performance and other comprehensive income 134
Consolidated statement of financial position 135
Consolidated statement of changes in equity 136
Consolidated statement of cash flows 137
Notes to and forming part of the consolidated financial statements 138
Directors’ declaration 184
Independent auditor’s report to the members of Worley Limited 185
Shareholder information 193
Glossary194
Corporate information 199
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 No other matter or circumstance has arisen since 30 June 2023
We’re consistently delivering improved results, and we’re on track that has significantly affected, or may significantly affect:
to deliver our ambition that we announced in 2021. • the consolidated entity’s operations in future financial years
We’ve set out details of our operations and activities in the • the results of those operations in future financial years
Operating and financial review, from page 43. • the consolidated entity’s state of affairs in future financial years.
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Overview Context & strategy Operating & financial review Financial statements
Consolidated
2023 $’M 2022 $’M
Revenue and other income 11,333 9,705
Depreciation (51) (54)
Amortization (114) (113)
Earnings before interest, tax and amortization (EBITA) 345 449
Net interest expense (110) (60)
Amortization of acquired intangible assets (89) (95)
Profit before income tax expense 146 294
Income tax expense (100) (117)
Statutory profit after income tax expense 46 177
Non-controlling interests (9) (5)
Statutory profit after income tax expense attributable to members of Worley Limited 37 172
Costs in relation to cost saving programs 50 67
Impact of transformation and restructuring: 1
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. 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.
3. 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.
Consolidated
2023 $’M 2022 $’M
Revenue and other income 11,333 9,705
Less: Procurement revenue at nil margin (including share of revenue from associates) (1,192) (946)
Add: Share of revenue from associates 794 310
Less: Interest income (7) (4)
Aggregated revenue 1
10,928 9,065
1. 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.
2. Excluding global support-related restructuring costs (refer to note 3(E) to the financial statements).
3. 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.
4. 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.
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Overview Context & strategy Operating & financial review Financial statements
Board governance
Corporate governance statement Indemnities and insurance
You can access the Company’s Corporate Governance Statement Under the Company’s Constitution, we indemnify each current and
for the year ended 30 June 2023 on the corporate governance page former officer of the Group against certain liabilities and costs they
in the investor relations section, of our website. might incur as an officer of the Group.
Non audit services We also indemnify each current and former officer of the Group
against certain liabilities and costs they might incur by acting as
Following the receipt of shareholders’ approval at Worley’s
an officer of another body corporate at the Company’s request.
annual general meeting on 21 October 2022, we announced
the appointment of PricewaterhouseCoopers (PwC) as the This indemnity does not cover any liabilities or costs that we’re
Company’s external auditor. PwC was responsible for the prohibited from indemnifying under the Act.
FY2023 external audit. Chris Dodd, PwC partner, was appointed We’ve also entered into deeds of access, indemnity and insurance
as Worley’s external audit engagement partner, following the with certain officers of the Group. Under those deeds, we agree
retirement of Matthew Lunn. PwC performed non-audit services (among other things) to:
in addition to its statutory audit duties. Ernst & Young, our • indemnify the officer to the extent permitted by law and the
outgoing auditor, performed non-audit services in addition to its Company’s Constitution
statutory audit duties up to 21 October 2022. The total fees for
• maintain a directors’ and officers’ insurance policy
non-audit services for the period amounted to $4,157,806.
• give officers access to Board papers.
The Board has a policy governing the provision of non-audit
We maintain a directors’ and officers’ insurance policy that, subject
services by the auditor. The Audit and Risk Committee has
to certain exemptions, covers former and current officers of the
reviewed the total non-audit services for the period provided
Group. During the financial year, we paid insurance premiums to
by Ernst & Young until 21 October 2022 and then by PwC. The
insure those officers. The insurance contracts prohibit us from
Board has accepted the recommendation from the Audit and
disclosing the amounts of the premiums we paid and the nature
Risk Committee that the total non-audit services was compatible
of the liability covered.
with the general standard of independence for auditors imposed
by the Corporations Act 2001 (Cth) (the Act). The Directors are Environmental regulation
satisfied that the non-audit services the auditor provided did not
compromise the auditor independence requirements of the Act The majority of our customers are responsible for obtaining
for the following reasons: environmental licenses for their projects and assets. We typically
help customers, who own or operate plant and equipment or have
• the Audit and Risk Committee reviewed all non-audit services to make
obligations over natural resources, to manage their environmental
sure they did not impact the integrity and objectivity of the auditor
licenses and responsibilities.
• none of the services undermine the general principles relating
to auditor independence in Accounting Professionals and Ethical We do have environmental responsibilities, which relate to
Standards (APES) 110 Code of Ethics for Professional Accountants. complying with environmental controls and exercising reasonable
This includes: care and skill in our design, construction management, operation
- not reviewing and auditing the auditor’s own work and supervising activities. We manage the risks associated
- not acting in a management or decision-making capacity for the Group with environmental issues through our risk management and
- not acting as advocate for the Group assurance systems.
- not jointly sharing economic risk and rewards. We comply with all environmental regulations that apply to
A copy of the auditor’s independence declaration, as required under us and our work. The Company confirms, for the purposes
Section 307C of the Act, is as follows: 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.
(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.
The number of Board and standing Board Committee meetings held during the financial year, and the number of meetings each Director
attended is below:
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.
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Chair and non-executive director since March 2013 Deputy Chair, Lead Independent Director and non-executive director,
Previously Chief Executive Officer and Managing Director from listing in Director since September 2018
November 2002 until October 2012. Countries of residence: Australia and United States of America
Director of the company before listing and Director of its predecessor Andrew was appointed to the Board effective 5 September 2018.
entities from 1971. He’s the Deputy Chair, Lead Independent Director and a member of
Country of residence: Australia the Nominations Committee.
John was appointed to the Board effective 1 March 2013. He’s Andrew is a director of IBM, Saudi Aramco, and NOVONIX Limited
Chair of the Board and Chair of the Nominations Committee, – a company supporting lithium-ion battery technologies. Andrew
a member of the People and Remuneration Committee and a is the President of Brisbane 2032 Organising Committee for the
member of the Health, Safety and Sustainability Committee. Olympic Games (OCOG).
John has over 40 years’ experience in the resources and energy Andrew was formerly the Chairman and Chief Executive Officer of
industry, starting his career with Esso Australia. In 1971, he the Dow Chemical Company and the former Executive Chairman
became Chief Executive Officer of Wholohan Grill and Partners, of DowDuPont. He has over 40 years’ global leadership experience
the entity that ultimately became owned by Worley Limited. John with the Dow Chemical Company with roles in manufacturing,
has expertise in every aspect of project delivery in the resources engineering, sales, marketing, business and general management
and energy industry. He maintains strong relationships with the around the world.
Group’s major customers and was closely involved with the Group’s Andrew was formerly the Vice Chair of the Business Roundtable
joint ventures at a Board level. and was the Chairman of the United States Business Council.
John was awarded an honorary doctorate by the University He has held previous Australian Government roles as Chair
of Sydney in 2010 in recognition of his contribution to the of the National COVID-19 Coordination Commission (NCCC)
engineering profession. Manufacturing Taskforce and Co-Chair of the Territory Economic
Reconstruction Commission.
He was appointed an Officer of the Order of Australia in 2014 for
distinguished service to engineering and business in the minerals, Andrew is a chartered engineer, a fellow of the Institution of
energy and power supply industries, and as a supporter of Chemical Engineers and a fellow of the Australian Academy of
advanced education and training. In 2019, John was awarded an Technological Sciences and Engineering (now Australian Academy
honorary doctorate from the University of New South Wales. of Technology and Engineering). He earned a bachelor’s degree
(first class honors) in Chemical Engineering from the University of
John is also Chairman of the Mindgardens Neuroscience Network Queensland and was awarded the University Medal. In 2005, he
– a partnership between the Black Dog Institute, Neuroscience was awarded an Honorary Doctorate in Science by his alma mater
Research Australia (NeuRA), South Eastern Sydney Local Health and was named alumnus of the year. He was appointed an Officer
District (SESLHD) and the University of New South Wales. 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 Nature of Date of Date of
name directorship commencement cessation
NOVONIX Limited Non-executive 1 July 2018 n/a
director
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 Thomas was appointed to the Board effective 18 December
a member of the People and Remuneration Committee and the 2017. He’s a member of the Health, Safety and Sustainability
Nominations Committee. Committee, the People and Remuneration Committee and the
Joseph had a 40-year career with the Chevron Corporation before Nominations Committee.
retiring in June 2022 as Executive Vice President and Senior Advisor Thomas’ appointment follows his 30-year career in executive
to Chevron’s Chairman and CEO. During his time with Chevron, positions at Ford Motor Company and Brambles Limited. He retired
Joseph’s roles included Executive Vice President of Technology, as Chief Executive Officer of Brambles in February 2017. He’s
Projects and Services and President of Chevron Gas and worked in multiple functions including finance, operations, logistics,
Midstream. Joseph was also responsible for Chevron’s upstream marketing and business development across the United States,
activities in Bangladesh, Cambodia, China, Myanmar, Thailand and England, France and Australia.
Vietnam and led Chevron’s downstream operations in East Africa, Thomas is a director of Orora Limited, Sims Limited and
the Middle East and Pakistan. Alcoa Corporation.
Joseph is on the board of trustees of Houston Grand Opera. He was Thomas graduated cum laude from Tufts University with degrees
previously a director of the National Action Council for Minorities in economics and international relations.
in Engineering and served on the board of trustees of the San
Francisco Ballet Association. He obtained an MBA with distinction from Harvard Business
School and an MA in international relations from the Fletcher
Joseph holds a Bachelor of Civil Engineering and a Master of Civil School of Law and Diplomacy at Tufts University.
Engineering from the University of Illinois. He is a member of the
American Society of Civil Engineers. Australian listed company directorships
Listed company Nature of Date of Date of
name directorship commencement cessation
Orora Limited Non-executive 2 September 2019 n/a
director
Sims Limited Non-executive 15 June 2020 n/a
director
102
Overview Context & strategy Operating & financial review Financial statements
Christopher Haynes
Roger Higgins
OBE, FREng, BSc (Hons), DPhil, CEng,
BE (Hons), MSc, PhD, FIEAust, FAusIMM
FIMechE, FIEAust
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 Roger was appointed to the Board effective 20 February 2019.
2012. He’s a member of the Health, Safety and Sustainability He’s Chair of the Health, Safety and Sustainability Committee
Committee, the People and Remuneration Committee and the and a member of the Nominations Committee.
Nominations Committee. Roger’s experience is in mining and operations. He’s a
Christopher had a 39-year career with the Shell Group of non‑executive director of Newcrest Mining Limited and
Companies and their affiliates. He’s lived in many countries, Hillgrove Resources Limited. He is an adjunct professor with the
working in oil and gas, LNG and chemicals businesses, primarily Sustainable Minerals Institute at the University of Queensland.
in project development, delivery and operations. Christopher was Roger has previously held senior executive positions with Teck
seconded to Woodside from 1999 to 2002 where he was General Resources Limited, BHP Billiton and Ok Tedi Mining Limited. He is a
Manager of the North West Shelf Venture. He then became former Chair and non-executive director of Demetallica Limited.
Managing Director of Shell’s operations in Syria and of Nigeria
LNG Limited. In 2008, Christopher assumed responsibility for the Roger holds a Bachelor of Civil Engineering with honors from the
delivery of Shell’s major upstream projects worldwide. He retired University of Queensland, a Master of Science in hydraulics from
from Shell in August 2011. Christopher was a non-executive the University of Aberdeen and a PhD in Water Resources from
director of Woodside Energy Group Limited from 2011 to 2023. the University of New South Wales. He is a fellow of the Institution
of Engineers Australia and the Australasian Institute of Mining
Christopher graduated from the University of Manchester with and Metallurgy.
a Bachelor of Science with honors in mechanical engineering.
He obtained a Doctor of Philosophy in Applied Sciences from the Australian listed company directorships
University of Sussex. He’s a chartered engineer and fellow of Listed company Nature of Date of Date of
the Institution of Mechanical Engineers in the United Kingdom name directorship commencement cessation
and, in 2015, was elected a fellow of the Royal Academy of Newcrest Mining Non-executive 1 October 2015 n/a
Engineering in the United Kingdom. He is a fellow of the Institution Limited director
of Engineers, Australia. Minotaur Exploration Non-executive 1 July 2016 25 February
Christopher was appointed to the Order of the British Empire Limited director and 31 January 2017 2022
Chairman
in June 2009 for his services to the British oil and gas industry
in Nigeria. Demetallica Limited Non-executive 16 December 2021 6 December
director and (ASX listed on 26 2022
Australian listed company directorships Chairman May 2022)
Listed company Nature of Date of Date of Hillgrove Resources Non-executive 6 June 2023 n/a
name directorship commencement cessation Limited director
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 Emma was appointed to the Board effective 10 December 2020.
2020. He is a member of the Audit and Risk Committee and the She is Chair of the People and Remuneration Committee and a
Nominations Committee. member of the Health, Safety and Sustainability Committee and
Martin is a director of O’Connell Street Associates, North Nominations Committee.
Queensland Airports and Champions of Change Coalition – a group Emma currently serves as a non-executive director of
of executive leaders committed to achieving gender equality and Adbri Limited.
advancing women into senior leadership positions in the private Emma is a former non-executive director of Alumina Limited,
and public sectors. Martin is also the Chancellor of Macquarie Cleanaway Waste Management Limited, Programmed
University and Co-Chair of the Great Barrier Reef Foundation. Maintenance Services Limited, Transfield Services Infrastructure
Martin previously served as Secretary for the Australian Fund, Clough Limited, the Diversified Utilities Energy Trust (DUET)
Government’s Department of the Prime Minister and Cabinet, Group and Iberdrola Australia Limited.
Australian Treasury and Department of Climate Change. Martin Before moving to Australia in 2003, Emma gained international
is a former director of Orica, the Cranlana Program for Ethical experience in management and leadership, and strategy
Leadership and the German-Australian Chamber of Industry and development and implementation in global industrial, energy and
Commerce. He’s been a member of the Board of the Reserve utilities markets. Her career included roles in strategic planning and
Bank of Australia, Infrastructure Australia, the Council of Financial operational management in the fuels sectors, specifically, as UK
Regulators, the Board of Taxation and the Territory Economic Managing Director at Gaz de France Energy and UK Gas Divisional
Reconstruction Commission. He was previously Chair of the Managing Director at British Fuels.
Australian Office of Financial Management.
Emma holds tertiary qualifications in science from the University
Martin holds a PhD and an MA from Princeton University, an MEc of Manchester and a Master of Business Administration (MBA)
from the Australian National University and a BEc (first class from Manchester Business School. Emma is an honorary fellow of
honors) from the University of Adelaide. Martin was awarded the the University of Western Sydney and a fellow of the Australian
degree of Doctor of the University (honoris causa) by the University Institute of Company Directors.
of Adelaide.
Australian listed company directorships
Martin was awarded a Companion of the Order of Australia and
has a Public Service Medal. He is a fellow of the Academy of Listed company Nature of Date of Date of
Social Sciences in Australia, the Institute of Public Administration name directorship commencement cessation
Australia and the Australian National Institute of Public Policy. He Adbri Limited Non-executive 4 October 2019 n/a
is a life member of the Australian Business Economists. director
Cleanaway Waste Non-executive 1 August 2011 31 December
Management director 2020
Limited
Alumina Limited Non-executive 3 February 2011 25 May 2021
director
Infigen Energy Non-executive 21 September 2017 21 October
Limited director 2020 (acquired
by Iberdrola
and delisted)
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Overview Context & strategy Operating & financial review Financial statements
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. Anne was appointed to the Board effective 1 November 2017.
He’s a member of the Audit and Risk Committee and the She is a member of the Audit and Risk Committee and the
Nominations Committee. Nominations Committee.
Juan has extensive experience in energy and resources in the Anne is a non-executive director of Commonwealth Bank of
Americas. He was previously Chief Financial Officer and then Australia, New South Wales Treasury Corporation, Trifork Holding
Chief Executive Officer of Petróleos Mexicanos (PEMEX). He was AG and Cyber Security Cooperative Research Centre.
also a senior executive with Grupo Modelo and an independent Anne is a former Chair and non-executive director of Blackmores
non‑executive director of Jacobs Engineering Group Inc. Limited. She is also a former non-executive director of GUD
During the 1990s, Juan was Chief of Staff to the Minister of Holdings Limited, the Citadel Group Limited, HT&E Limited,
Finance, Mexico, a senior executive with Banamex (now Citi), Cuscal Limited, HBF Health Limited, Pioneer Credit Limited, TAL
and Head of Corporate Finance and then Treasurer of Grupo Superannuation Fund, Notre Dame University and the McCusker
Televisa, Mexico. Foundation for Alzheimer’s Research.
Juan has a PhD in Economics from the University of Chicago. During Anne has executive experience in institutional and commercial
the 1980s, he held various academic roles. These include as a banking, wealth management, insurance, strategy and risk.
full-time professor in the ITAM Department of Economics, visiting She previously held several senior executive roles with ANZ
professor at the Universidad Autónoma de Barcelona Department and Westpac.
of Economics and associate professor at Brown University in Anne has a Master of Risk Management from the University
Rhode Island. 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 Nature of Date of Date of
name directorship commencement cessation
Commonwealth Non-executive 5 March 2018 n/a
Bank of Australia director
Blackmores Limited Non-executive 28 October 2020 25 November
director and Chair 2022
GUD Holdings Non-executive 1 August 2015 31 August
Limited director 2021
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 Sharon was appointed to the Board effective 20 February 2019.
2011. She’s a member of the Audit and Risk Committee and the She’s the Chair of the Audit and Risk Committee and a member of
Nominations Committee. the Nominations Committee.
Xiao Bin is a non-executive director of Hang Seng Bank Limited. Sharon has predominantly worked in the construction, mining
She was previously an Executive Director and Senior Vice President and infrastructure sectors. She’s a chartered accountant with
of China Resources Power Holdings Company Limited and a experience in strategy and accounting, holding senior executive
director of Corporate Finance (Asia Pacific) at ING Investment positions at Rio Tinto, Brookfield Multiplex, Aldar Properties PJSC,
Banking, responsible for execution of capital markets and merger Multiplex and Citigroup.
and acquisition transactions in the region. Xiao Bin formerly Sharon is a non-executive director of Wesfarmers Limited and
worked at PricewaterhouseCoopers in Australia in the Audit and Northern Star Resources Limited and a part-time member of
Business Advisory division. the Takeovers Panel. She’s an Independent Director of Karlka
Xiao Bin has over 18 years’ experience in the power industry Nyiyaparli Aboriginal Corporation RNTBC.
including its major shift towards a low-carbon future and Sharon was formerly the Co-Deputy Chairman of Fortescue Metals
meeting industrial and consumer demand for clean, reliable Group Limited, Chairman of the Australian Government’s Northern
and affordable energy. Australia Infrastructure Facility and a non-executive director of
Xiao Bin qualified as a chartered accountant and certified practising NEXTDC Limited.
accountant (CPA) in Australia. She holds a Bachelor of Commerce Sharon holds a Bachelor of Business (accounting and business law)
from Murdoch University, Australia, and a Graduate Diploma in from Curtin University. She’s a fellow of Chartered Accountants
Applied Finance and Investment from the Securities Institute of Australia and New Zealand, and the Australian Institute of
Australia (now FINSIA). 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 Nature of Date of Date of
name directorship commencement cessation
Wesfarmers Limited Non-executive 1 August 2019 n/a
director
Blackmores Limited Non-executive 28 April 2021 10 August
director 2023
Northern Star Non-executive 1 September 2021 n/a
Resources Limited director
Gold Road Resources Non-executive 9 May 2016 30 September
Limited director 2021
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Overview Context & strategy Operating & financial review Financial statements
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
Chris was appointed Chief Executive Officer and Managing Director Nuala was appointed Group Company Secretary in August 2016.
on 24 February 2020. She’s responsible for corporate governance for the Board and the
Chris joined Worley in 1998 and has held many leadership roles Group Executive.
across the Company as it evolved through acquisition and organic Nuala is also responsible for the legal and governance matters
growth. Before becoming CEO, Chris was Chief Operating Officer relevant to Worley Limited. These include the capital structure and
responsible for the integration of the ECR business and setting the regulatory obligations, with Group accountabilities for continuous
strategy for Worley’s transformation. disclosure. Nuala has a background in private legal practice,
Before this, he was Group Managing Director for Major specializing in corporate litigation and corporate governance. Nuala
Projects and Integrated Solutions with accountability for growth holds degrees in law and arts from the University of Sydney and
and performance. a Graduate Diploma of Applied Corporate Governance. Nuala is a
solicitor of the Supreme Court of New South Wales.
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.
Remuneration report
Audited
112 3. FY2023 remuneration outcomes 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
117 4. Performance and remuneration outcomes over five years
remuneration and governance framework that supports our people
118 5. Remuneration governance strategy, drives performance and holds our leaders accountable
120 6. Executive remuneration structure in detail for demonstrating our values, building our culture and keeping our
people safe.
126 7. Executive KMP employment agreements
127 8. Non-Executive Director remuneration Our executive remuneration outcomes in FY2023 reflect our
strong performance in line with executing our strategy and
128 9. Remuneration tables (statutory disclosures) 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.
41%
business into the future.
Emma Stein
Chair, People and
Remuneration Committee Sustainability revenue
(+6pp growth on FY2022)
97.3%
STI business scorecard
outcome
(89% in FY2022)
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Overview Context & strategy Operating & financial review Financial statements
Non-Executive Directors
John Grill Chair Full year Australia
Andrew Liveris Non-Executive Director and Deputy Chair Full year Australia and United States of America
Juan Suárez Coppel Non-Executive Director Full year Mexico
Thomas Gorman Non-Executive Director Full year United States of America
Christopher Haynes Non-Executive Director Full year United Kingdom
Roger Higgins Non-Executive Director Full year Australia
Martin Parkinson Non-Executive Director Full year Australia
Emma Stein Non-Executive Director Full year Australia
Anne Templeman‑Jones Non-Executive Director Full year Australia
Sharon Warburton Non-Executive Director Full year Australia
Wang Xiao Bin Non-Executive Director Full year Hong Kong, China
110
Overview Context & strategy Operating & financial review Financial statements
Fixed salary
Cash and benefits Reflects the accountabilities and • Attracts, motivate and retains executives
expectations of the role • Benchmarked against global industry peer companies and Australian
1 year companies with global operations of similar size and complexity
Cash award Motivates and rewards strong • Is subject to achieving financial, ESG, strategic, business scorecard and
performance individual performance KPIs
1 year • Requires stretch performance for at-target payout. Maximum payout
requires outstanding performance above already stretched targets
Performance rights Rewards executives for strategy • Creates strong shareholder alignment
execution over the medium term • Attracts, motivates and retains executives
2 and
3 year • Is subject to strategy execution performance hurdle
measured over two years
Performance rights Rewards executives for long‑term • Create strong shareholder alignment
growth in shareholder value • Is subject to two performance hurdles, measured over four years:
4 years • 50% subject to earnings per share (EPS) hurdle
• 50% subject to relative total shareholder return (TSR) hurdle
X X X =
Diversity and inclusion 17% of Senior Leaders are women 20% 18.0%
Strategic 3
The Board did not apply discretion to the business scorecard outcomes.
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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Overview Context & strategy Operating & financial review Financial statements
Financial
Underlying NPATA Net profit after tax excluding post‑tax impact of amortization of intangible $348m underlying NPATA
assets acquired through business combinations. Underlying means profit This is slightly below target, however it represents
after adjusting for significant/non‑operational items not considered growth of 5.8% from FY2022. This is the result
part of our performance. We used underlying NPATA for remuneration of managing costs, delivering projects well and
purposes, including the impact of actual currency movements compared to winning new business.
budget. The FY2023 outcome includes 12 months of the North American
Turnaround and Maintenance business on a proforma basis.
Cash conversion ratio Cash conversion ratio measures underlying operating cash before interest 86.6% cash conversion ratio
and tax over underlying group EBITA. This measure replaced days sales This is within our target range.
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).
Strategic
New business in Measured as Gross Margin Sold in defined sustainability-related Gross Margin Sold in sustainability projects
sustainability work (decarbonization, resource stewardship, asset sustainability, exceeded the target.
environment and society). For further information, see page 26.
Professional Measured as increase in gross margin percentage in total group Gross margin percentage in PSR revenue exceeded
services revenue professional services revenue (PSR). the target.
Individual scorecard
CEO Key performance comments modifier
Chris Ashton has continued to lead Worley to achieve very strong business outcomes to position us as a globally 125%
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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Overview Context & strategy Operating & financial review Financial statements
Business Individual Total as a Actual STI Maximum STI paid STI forfeited
scorecard scorecard1 % of target awarded2 potential STI3 as a % of as a % of
Name (A) (B) (A x B = C) $000 $000 maximum maximum
Vesting
KPI Performance measure Performance outcome
Growth in Gross Margin Growth in Gross Margin Delivered in sustainability-related $1,075m Gross Margin Delivered in 100%
Delivered from projects in defined work, measured from June 2021 to June 2023 on a constant sustainability-related work, which is
sustainability-related work currency basis. For further information on how we define 7.5% above our target of $1,000m.
sustainability-related work see page 26.
Vesting outcome 100%
Fixed salary Comprises base salary plus superannuation or retirement contributions, paid for FY2023.
Cash STI Comprises cash STI for FY2023, generally paid in October.
DEP and LTI 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.
Total Variable
remuneration remuneration
Fixed salary Cash STI DEP LTI Benefits received received as a %
Name Year $000 $000 $000 $000 $000 $000 of total
Executive Director
Chris Ashton FY2023 2,018 2,528 1,586 – 55 6,187 66%
1. Tiernan O’Rourke started as CFO on 29 November 2021 and amounts shown for FY2022 reflect this. He was granted FY2022 equity on a pro‑rata basis.
2. Mark Brantley started as Group President, EMEA and APAC and became a KMP on 1 November 2021. In the FY2022 remuneration report, remuneration received from
STI and equity was not apportioned for the period he was a KMP. The FY2022 comparatives have been restated to reflect the apportioned remuneration received.
A proportion of the benefits stated include tax gross-ups for both the US and Netherlands. Tax settlements will occur up to a year after the reporting period, following
tax filing which occurs on a calendar tax year basis for both the US and Netherlands.
3. Mark Trueman started as Group President, Americas and became a KMP on 1 July 2022. Therefore there are no amounts shown for FY2022. A proportion of the benefits
reported includes relocation expenses and gross-ups for tax purposes.
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Overview Context & strategy Operating & financial review Financial statements
Underlying NPATA2 results vs STI outcomes TSR performance relative to our peer comparator group
100 400
348
100
% of STI paid
75 277 300
329
TSR (%)
239
50
50 200
0
25 100
-50
0 0 -100
2019 2020 2021 2022 2023 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23
NPATA ($million) % of target STI paid % of max STI paid3 Worley 25th Percentile 50th Percentile 75th Percentile
1. Annualized growth over five years is calculated starting from the 30 July 2018 final values.
2. From FY2020, financial measures for earnings are based on underlying NPATA for remuneration purposes. The measure changed from NPAT to NPATA,
following the acquisition of ECR, to make sure remuneration continues to focus on operational performance.
3. Closing price for Worley shares on June 30 each year.
4. Maximum STI payout was 150% of fixed salary for FY2019, 200% for FY2020 and FY2021, and 150% from FY2022 onwards.
5. 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. Previously, we’ve reported EPS % achieved above CPI. From FY2022, we report EPS % achieved excluding CPI for all years.
8. 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.
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.
We source market data from published reports and independent • The CEO recommends pay increases and variable pay
surveys. If required, the People and Remuneration Committee outcomes for the executives (other than the CEO) at the
seeks independent advice on the quantum and structure of request of the Nominations Committee or the People
remuneration. In these situations, the remuneration advisor and Remuneration Committee.
engages with the People and Remuneration Committee Chair. • Management provides information relevant to remuneration
The People and Remuneration Committee or Board uses advice decisions and, if appropriate, liaises with advisors to help the
and information as a guide only and is responsible for all relevant committee with factual information.
decisions. • 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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Overview Context & strategy Operating & financial review Financial statements
5.1 Minimum shareholding requirement (MSR) 5.5 Exercise of rights and allocation of shares
Our MSR aligns executives and NEDs to shareholders, Once an executive has satisfied all vesting conditions, including
encouraging them to behave like owners and focus on performance hurdles, their equity rights are automatically
building long‑term shareholder value. exercised and they acquire shares at a nil exercise price, net
Executives must retain equity received through incentive plans of any tax withholding.
until their holding is equivalent to two times their fixed salary Shares allocated to executives at the point of exercise rank equally
(or four times for the CEO). They must maintain that multiple. with all other ordinary shares. Executives have unencumbered
The value of their holding includes all Worley shares held plus ownership of vested shares, subject to compliance with Worley’s
50% of the value of unvested rights. We show the position of Securities Dealing Policy and MSR.
each executive at 30 June 2023 in section 9.3.
5.6 Cessation of employment
NEDs must acquire Worley ordinary shares equivalent in Our policy for termination benefits and entitlements treats leaving
value to their annual base fee. NEDs are expected to meet the executives fairly and in accordance with the law and market practice.
requirements within their first three-year term. We show the The policy covers discretion the Board may exercise, and was most
MSR position of each NED on 30 June 2023 in section 9.6. recently approved by shareholder vote at the 2022 AGM.
For all MSR calculations, we value shares using the higher Where an executive leaves, the Board may exercise its discretion to
of the acquisition price or the five-day volume-weighted determine that the executive retain some or all of a cash incentive
average price (VWAP) for Worley shares up to and including or unvested equity rights. This is known as being a good leaver.
30 June 2023: $15.69. The Board decides the conditions and timing of any payment or
5.2 Other equity provisions vesting, considering relevant factors including an assessment of
Equity rights granted to executives carry: the executive’s contribution and performance. The Board generally
exercises this discretion only in circumstances such as death,
• no voting or dividend entitlements; and
permanent disability, retirement and redundancy.
• no entitlement to participate in new share issues other than
bonus issues and capital reorganizations, where the Board may Typically, good leavers retain a pro-rata portion of their awards
adjust the number of rights in accordance with the ASX Listing relative to the time they were employed during the performance
Rules. This makes sure there’s no advantage or disadvantage to period. Cash incentives paid are subject to Worley’s performance
the executive. and the executives’ performance. Retained unvested equity
rights remain subject to applicable performance and time
5.3 Hedging vesting requirements. The Board believes this discretion is in
Our Securities Dealing Policy prohibits NEDs and executives from our best interests.
hedging unvested equity rights or shares that count towards their
5.7 Change of control
MSR. This makes sure they:
In a change of control event (where a third party unconditionally
• can’t limit the risk associated with these instruments
acquires more than 50% of the issued share capital of the
• are subject to the same fluctuations in share price as all Company), the Board will determine whether to vest any or
other shareholders. all unvested equity rights. The Board would consider pro‑rata
5.4 Clawback and malus provisions performance against applicable performance hurdles, up to the
date of the change of control.
These provisions enable the Board to claw back or lapse an
executive’s equity rights if they believe the executive: 5.8 Dilution limit
• has acted fraudulently or dishonestly The Board has determined that the number of securities we
• has breached their obligations to the Company or another Group issue under our equity plans should be capped at 5% of the
Company, including those outlined in Worley’s Code of Conduct Company’s issued share capital over a five‑year period. Currently,
• received grants based on financial accounts which were the number of securities issued and held in accordance with the
later restated equity plans represents 2.85% of the Company’s issued share
• is responsible, through negligence or intentional disregard capital (FY2022: 2.77%).
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.
Our global comparator groups are: Our Australian comparator groups are:
1. peer companies in our TSR comparator group ASX companies operating in the energy,
under our LTI (see section 6.8); and materials or industrial sector, with a market
capitalization between 50% and 200% of ours,
2. companies of similar size in the energy,
and those with similar global operations and
chemicals and resources sector in markets in
complexity to our business.
which we operate (as relevant for each executive),
notably North America, the UK and Europe.
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Overview Context & strategy Operating & financial review Financial statements
Min 100%
Target 36% 28.8% 19.8% 15.3%
Max 27.8% 33.3% 15.3% 23.6%
• Financial
STI (cash) • Annual cash payment
• ESG
Running and growing • 0–150% of target
• Strategic
our business
priorities
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Overview Context & strategy Operating & financial review Financial statements
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:
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 The grant vests in two equal tranches at two and three years. The Board determines the outcome of the strategic execution
assessment and condition at the end of the performance period, considering the results against the KPI(s). The Board determines a nil, partial or
vesting 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.
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Overview Context & strategy Operating & financial review Financial statements
Feature Description
Summary of We assess the LTI against two equally weighted, independent performance targets:
performance Relative Total Shareholder Return (TSR) performance hurdle – 50% weighting
conditions
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 0%
At 50th percentile 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)
EPS annual compound growth Percentage of rights that may be exercised if the EPS hurdle is met
Less than 4% p.a. 0%
4% p.a. 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 An independent external consultant is used to calculate the TSR outcomes for all peer companies, including any adjustments
assessment and required in certain scenarios (e.g. capital raising activities, mergers, divestments or bankruptcies) and the final ranking list for both
vesting 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.
Executive Director
Chris Ashton Unlimited 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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Feature Description
Board fees Board fees (inclusive of superannuation where relevant) are:
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:
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.
Total Annual
Cash short-term Super– and long Termi–
Cash incentive/ Other cash and annuation service nation Equity LTI equity Variable
salary cash STI 1 benefits 2 benefits benefits leave benefits incentives3 settled4 Total pay % of
Name Year $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 total
Executive Director
Chris Ashton FY2023 1,996 2,528 55 4,579 22 32 – 1,018 548 6,199 66.0%
FY2022 1,692 1,626 38 3,356 15 33 – 735 504 4,643 61.7%
1. This relates to the STI Plan. The FY2023 STI will be paid to executives in October 2023.
2. 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.
3. Equity Incentives include grants made under the DEP and any other special performance grants made from time to time.
4. 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.
5. 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.
6. 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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Overview Context & strategy Operating & financial review Financial statements
Vested rights
Vested rights exercised/ Balance at
Balance at Rights Rights Rights withheld Shares Shares 30 June
Name Type 1 July 2022 granted lapsed1 vested for tax2 delivered disposed3 20234
Executive Director
Chris Ashton Rights 586,714 239,634 (41,754) (53,274) (20,964) (32,310) – 731,320
Shares 144,296 – – – – 32,310 – 176,606
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.
Executive Director
Max value
Fair value Rights % Of % Of of rights
Grant Rights per right Rights Rights withheld Rights rights rights yet to vest
Name date Vest date granted1 (AUD)2 vested exercised for tax3 lapsed4 vested lapsed $0005
Executive Director
Chris Ashton4
FY20 DEP Tranche 3 31-Oct-19 30-Sep-22 9,278 $12.10 (9,278) (5,627) (3,651) – 100% – –
FY21 DEP Tranche 1 31-Oct-20 30-Sep-22 43,996 $8.58 (43,996) (26,683) (17,313) – 100% – –
FY21 DEP Tranche 2 31-Oct-20 30-Sep-23 43,996 $8.08 – – – – – – 28
FY22 DEP Tranche 1 31-Oct-21 30-Sep-23 56,398 $9.89 – – – – – – 62
FY22 DEP Tranche 2 31-Oct-21 30-Sep-24 56,398 $9.37 – – – – – – 204
FY23 DEP Tranche 1 31-Oct-22 30-Sep-24 45,336 $13.34 – – – – – – 337
FY23 DEP Tranche 2 31-Oct-22 30-Sep-25 45,336 $12.88 – – – – – – 405
FY20 LTI (TSR Tranche) 7 31-Oct-19 30-Sep-23 20,877 $7.78 – – – (20,877) – 100% –
FY20 LTI (EPS Tranche)7 31-Oct-19 30-Sep-23 20,877 $12.10 – – – (20,877) – 100% –
FY21 LTI (TSR Tranche) 31-Oct-20 30-Sep-24 74,793 $5.60 – – – – – – 124
FY21 LTI (EPS Tranche) 31-Oct-20 30-Sep-24 74,793 $7.67 – – – – – – –
FY22 LTI (TSR Tranche) 31-Oct-21 30-Sep-25 92,654 $5.86 – – – – – – 288
FY22 LTI (EPS Tranche) 31-Oct-21 30-Sep-25 92,654 $8.92 – – – – – – 438
FY23 LTI (EPS Tranche) 31-Oct-22 30-Sep-26 74,481 $12.44 – – – – – – 709
FY23 LTI (TSR Tranche) 31-Oct-22 30-Sep-26 74,481 $8.07 – – – – – – 460
Other Executive KMP
Tiernan O’Rourke8
FY22 DEP Tranche 1 31-Oct-21 30-Sep-23 16,060 $9.89 – – – – – – 22
FY22 DEP Tranche 2 31-Oct-21 30-Sep-24 16,060 $9.37 – – – – – – 66
FY23 DEP Tranche 1 31-Oct-22 30-Sep-24 19,900 $13.34 – – – – – – 148
FY23 DEP Tranche 2 31-Oct-22 30-Sep-25 19,900 $12.88 – – – – – – 178
FY22 LTI (TSR Tranche) 31-Oct-21 30-Sep-25 24,820 $5.86 – – – – – – 85
FY22 LTI (EPS Tranche) 31-Oct-21 30-Sep-25 24,820 $8.92 – – – – – – 130
FY23 LTI (TSR Tranche) 31-Oct-22 30-Sep-26 30,755 $8.07 – – – – – – 190
FY23 LTI (EPS Tranche) 31-Oct-22 30-Sep-26 30,754 $12.44 – – – – – – 293
Mark Brantley 9
FY20 DEP Tranche 3 31-Oct-19 30-Sep-22 7,292 $12.10 (7,292) (5,078) (2,214) – 100% – –
FY21 DEP Tranche 1 31-Oct-20 30-Sep-22 9,705 $8.58 (9,705) (6,760) (2,945) – 100% – –
FY21 DEP Tranche 2 31-Oct-20 30-Sep-23 9,705 $8.08 – – – – – – 7
FY22 DEP Tranche 1 31-Oct-21 30-Sep-23 19,072 $9.89 – – – – – – 21
FY22 DEP Tranche 2 31-Oct-21 30-Sep-24 19,072 $9.37 – – – – – – 69
FY23 DEP Tranche 1 31-Oct-22 30-Sep-24 14,301 $13.34 – – – – – – 106
FY23 DEP Tranche 2 31-Oct-22 30-Sep-25 14,301 $12.88 – – – – – – 128
FY21 LTI (TSR Tranche) 31-Oct-20 30-Sep-24 9,705 $5.60 – – – – – – 16
FY21 LTI (EPS Tranche) 31-Oct-20 30-Sep-24 9,705 $7.67 – – – – – – –
FY22 LTI (TSR Tranche) 31-Oct-21 30-Sep-25 29,475 $5.86 – – – – – – 92
FY22 LTI (EPS Tranche) 31-Oct-21 30-Sep-25 29,475 $8.92 – – – – – – 139
FY23 LTI (EPS Tranche) 31-Oct-22 30-Sep-26 22,102 $12.44 – – – – – – 210
FY23 LTI (TSR Tranche) 31-Oct-22 30-Sep-26 22,102 $8.07 – – – – – – 136
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Max value
Fair value Rights % Of % Of of rights
Grant Rights per right Rights Rights withheld Rights rights rights yet to vest
Name date Vest date granted1 (AUD)2 vested exercised for tax3 lapsed4 vested lapsed $0005
Mark Trueman10
FY20 DEP Tranche 3 31-Oct-19 30-Sep-22 2,896 $12.10 (2,896) (2,835) (61) – 100% – –
FY21 DEP Tranche 1 31-Oct-20 30-Sep-22 8,152 $8.58 (8,152) (7,893) (259) – 100% – –
FY21 DEP Tranche 2 31-Oct-20 30-Sep-23 8,152 $8.08 – – – – – – 5
FY22 DEP Tranche 1 31-Oct-21 30-Sep-23 9,953 $9.89 – – – – – – 11
FY22 DEP Tranche 2 31-Oct-21 30-Sep-24 9,952 $9.37 – – – – – – 36
FY23 DEP Tranche 1 31-Oct-22 30-Sep-24 14,301 $13.34 – – – – – – 106
FY23 DEP Tranche 2 31-Oct-22 30-Sep-25 14,301 $12.88 – – – – – – 128
FY20 LTI (TSR Tranche)7 31-Oct-19 30-Sep-23 3,476 $7.78 – – – (3,476) – 100% –
FY20 LTI (EPS Tranche)7 31-Oct-19 30-Sep-23 3,476 $12.10 – – – (3,476) – 100% –
FY21 LTI (TSR Tranche) 31-Oct-20 30-Sep-24 8,152 $5.60 – – – – – – 13
FY21 LTI (EPS Tranche) 31-Oct-20 30-Sep-24 8,152 $7.67 – – – – – – –
FY22 LTI (TSR Tranche) 31-Oct-21 30-Sep-25 12,441 $5.86 – – – – – – 39
FY22 LTI (EPS Tranche) 31-Oct-21 30-Sep-25 12,441 $8.92 – – – – – – 59
FY23 LTI (EPS Tranche) 31-Oct-22 30-Sep-26 22,102 $12.44 – – – – – – 210
FY23 LTI (TSR Tranche) 31-Oct-22 30-Sep-26 22,102 $8.07 – – – – – – 136
Travel
Fees allowances Superannuation1 Total
Name Year $000 $000 $000 $000
John Grill FY2023 497 10 25 532
FY2022 500 5 22 527
Andrew Liveris FY2023 246 5 24 275
FY2022 247 5 23 275
Juan Suárez Coppel FY2023 221 5 – 226
FY2022 221 5 – 226
Thomas Gorman FY2023 237 5 – 242
FY2022 243 – – 243
Christopher Haynes FY2023 237 10 – 247
FY2022 237 5 – 242
Roger Higgins FY2023 235 10 – 245
FY2022 235 5 – 240
Martin Parkinson FY2023 200 10 21 231
FY2022 201 5 20 226
Emma Stein FY2023 232 10 24 266
FY2022 211 5 21 237
Anne Templeman-Jones FY2023 212 10 22 244
FY2022 242 5 – 247
Sharon Warburton FY2023 227 10 1 238
FY2022 221 5 – 226
Wang Xiao Bin FY2023 221 10 – 231
FY2022 221 – – 221
Totals FY2023 2,765 95 117 2,977
FY2022 2,779 45 86 2,910
1. Superannuation contributions are made on behalf of NEDs in accordance with the Company’s statutory superannuation obligations.
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This Directors’ Report (including the Remuneration Report) is made in accordance with a resolution of the directors.
John Grill AO
Chair
CONSOLIDATED
2023 2022
NOTES $’M $’M
The above Consolidated Statement of Financial Performance and Other Comprehensive Income should be read in conjunction with the accompanying notes.
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CONSOLIDATED
2023 2022
NOTES $’M $’M
ASSETS
Current assets
Cash and cash equivalents 7 425 507
Trade receivables and contract assets 8 1,973 1,952
Procurement assets 27 177 164
Other current assets 8 348 215
Income tax receivable 62 107
Prepayments 157 99
Derivatives 19(B) 7 3
Total current assets 3,149 3,047
Non-current assets
Trade receivables and contract assets 8 135 128
Intangible assets 10 6,068 6,155
Property, plant and equipment and right of use (ROU) assets 28 633 617
Deferred tax assets 29(A) 253 192
Equity accounted associates 22(B) 196 189
Other non-current assets 84 68
Total non-current assets 7,369 7,349
TOTAL ASSETS 10,518 10,396
LIABILITIES
Current liabilities
Trade and other payables 9 1,429 1,350
Procurement payables 27 211 199
Provisions 11 637 610
Interest bearing loans and borrowings and lease liabilities 13 90 564
Income tax payable 45 38
Derivatives 19(C) 13 32
Total current liabilities 2,425 2,793
Non-current liabilities
Trade and other payables 9 50 53
Interest bearing loans and borrowings and lease liabilities 13 2,158 1,605
Defined benefit plans 30 56 51
Deferred tax liabilities 29(B) 82 90
Provisions 11 146 121
Total non-current liabilities 2,492 1,920
TOTAL LIABILITIES 4,917 4,713
NET ASSETS 5,601 5,683
EQUITY
Issued capital 15 5,351 5,341
Reserves 16 (159) (302)
Retained profits 415 640
Members of Worley Limited 5,607 5,679
Non-controlling interests (6) 4
TOTAL EQUITY 5,601 5,683
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Worley
Worley Annual
Annual Report2023
Report 2023 135 135
Financial statements
CONSOLIDATED
FOREIGN
CURRENCY PERFORMANCE DEFINED MEMBERS OF NON-
ISSUED RETAINED TRANSLATION HEDGE RIGHTS BENEFIT ACQUISITION WORLEY CONTROLLING
CAPITAL PROFITS RESERVE RESERVE RESERVE RESERVE RESERVE LIMITED INTERESTS TOTAL
$’M $’M $’M $’M $’M $’M $’M $’M $’M $’M
As at 1 July 2022 5,341 640 (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.
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CONSOLIDATED
2023 2022
NOTES $’M $’M
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Worley
Worley Annual
Annual Report2023
Report 2023 137 137
Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
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.
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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
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Annual Report2023
Report 2023 139 139
Financial statements
NOTEStoTO
Notes andTHE CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
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
AMERICAS EMEA APAC TOTAL
2023 2022 2023 2022 2023 2022 2023 2022
$’M $’M $’M $’M $’M $’M $’M $’M
Professional services revenue 2,201 1,860 2,578 2,300 1,952 1,594 6,731 5,754
Construction and fabrication revenue 2,283 2,198 721 608 - - 3,004 2,806
Procurement revenue at margin 360 129 724 260 107 110 1,191 499
Other income 2 - - - - 6 2 6
Total aggregated revenue 1 4,846 4,187 4,023 3,168 2,059 1,710 10,928 9,065
Segment EBITA 2
297 271 329 283 222 181 848 735
Segment margin 6.1% 6.5% 8.2% 8.9% 10.8% 10.6% 7.8% 8.1%
Segment margin (excluding procurement revenue at margin)3 6.6% 6.7% 10.0% 9.7% 11.4% 11.3% 8.7% 8.6%
Other segment information
Depreciation and amortization expense4 48 47 67 80 50 40 165 167
Share of net profits of associates accounted for using the equity method (5) (1) 23 8 5 1 23 8
Carrying value of equity accounted associates 22 29 152 145 22 15 196 189
Purchase of non-current assets 21 11 14 22 47 20 82 53
Professional services revenue 2,888 2,523 2,356 2,157 1,487 1,074 6,731 5,754
Construction and fabrication revenue 1,861 1,719 1,075 1,032 68 55 3,004 2,806
Procurement revenue at margin 441 229 214 119 536 151 1,191 499
Other income 2 6 - - - - 2 6
Total aggregated revenue 5,192 4,477 3,645 3,308 2,091 1,280 10,928 9,065
Segment EBITA 360 327 318 302 170 106 848 735
Segment margin 6.9% 7.3% 8.7% 9.1% 8.1% 8.3% 7.8% 8.1%
Segment margin (excluding procurement revenue at margin) 7.6% 7.7% 9.3% 9.5% 10.9% 9.4% 8.7% 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.
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(E) RECONCILIATION OF SEGMENT EBITA TO PROFIT AFTER INCOME TAX EXPENSE PER THE CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
TOTAL
2023 2022
$’M $’M
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
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
ADD: TOTAL
ADD: PASS- LESS: REVENUE
PROCUREMENT THROUGH SHARE OF LESS: FROM
AGGREGATED REVENUE AT REVENUE AT REVENUE FROM OTHER EXTERNAL
REVENUE NIL MARGIN NIL MARGIN ASSOCIATES INCOME CUSTOMERS
2022 $’M $’M $’M $’M $’M $’M
2023 2022
$’M $’M
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.
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142 Worley Annual Report 2023
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CONSOLIDATED
2023 2022
$’M $’M
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.
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
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.
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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
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
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146 Worley Annual Report 2023
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CONSOLIDATED
2023 2022
$’M $’M
6. INCOME TAX
(A) INCOME TAX EXPENSE
Prima facie tax expense at Worley Limited’s statutory income tax rate of 30% (2022: 30%) 44 88
Tax effect of amounts which are non-deductible/(non-taxable) in calculating taxable income:
Non-deductible loss on sale of subsidiary 36 -
Certain withholding tax assets write off 12 15
Non-deductible items under US tax law 11 27
Non-deductible shared based payments expense 8 6
Under/(over) provision in previous financial periods 6 (7)
Tax losses not previously recognized (16) (4)
Difference in overseas tax rates and other 6 (15)
Share of profits of associates accounted for using the equity method (7) (2)
Valuation allowance against certain deferred tax assets - 9
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
CONSOLIDATED
2023 2022
NOTES $’M $’M
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148 Worley Annual Report 2023
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CONSOLIDATED
2023 2022
NOTES $’M $’M
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)
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
CONSOLIDATED
2023 2022
NOTES $’M $’M
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.
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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150 Worley Annual Report 2023
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CONSOLIDATED
2023 2022
$’M $’M
Goodwill
At cost 5,640 5,604
Accumulated Impairment (200) (200)
5,440 5,404
Customer contracts and relationships
At cost 869 899
Accumulated amortization (388) (317)
481 582
Computer software and other
At cost 656 661
Accumulated amortization (509) (492)
147 169
Total intangible assets 6,068 6,155
RECONCILIATIONS
Reconciliations of intangible assets at the beginning and end of the current and previous financial years are set out below:
CONSOLIDATED
CUSTOMER CONTRACTS TRADE COMPUTER SOFTWARE
GOODWILL AND RELATIONSHIPS NAMES AND OTHER TOTAL
$’M $’M $’M $’M $’M
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
152
152 Worley Annual Report 2023
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CONSOLIDATED
2023 2022
$’M $’M
11. PROVISIONS
CURRENT
Employee benefits 469 425
Project losses 80 76
Insurance 20 28
Onerous contracts 6 11
Warranty 25 10
Other 37 60
637 610
NON-CURRENT
Employee benefits 109 95
Warranty 32 25
Other 5 1
146 121
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
EMPLOYEE ONEROUS
BENEFITS PROJECT LOSSES INSURANCE CONTRACTS WARRANTY OTHER
CURRENT $’M $’M $’M $’M $’M $’M
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Total interest bearing loans and borrowings excluding lease liabilities1 2,005 1,914
Add: Lease liabilities 261 267
Less: cash and cash equivalents2 (436) (519)
Net debt 1,830 1,662
Total equity 5,601 5,683
Gearing 24.6% 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.
1
Excluding capitalized borrowing costs.
2
Includes procurement cash and restricted cash.
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
CONSOLIDATED
2023 2022
$’M $’M
FY2023
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).
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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 DATE OF ISSUE DATE OF MATURITY FIXED COUPON PER ANNUM
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:
AS AT FOREIGN EXCHANGE AS AT
1 JULY RECLASSIFICATION CASH FLOWS MOVEMENTS OTHER1 30 JUNE
$'M $'M $'M $'M $'M $'M
2023
Current interest bearing loans and borrowings 477 - (483) 6 - -
Non-current interest bearing loans and borrowings 1,437 - 455 113 - 2,005
Lease liabilities 267 - (121) 8 107 261
Liabilities 2,181 - (149) 127 107 2,266
2022
Current interest bearing loans and borrowings 135 293 48 1 - 477
Non-current interest bearing loans and borrowings 1,626 (293) 89 15 - 1,437
Lease liabilities 311 - (110) 15 51 267
Liabilities 2,072 - 27 31 51 2,181
CONSOLIDATED
2023 2022
NUMBER OF SHARES $’M NUMBER OF SHARES $’M
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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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
2023 2022
Performance rights
The outstanding balance as at 30 June 2023 is represented by:
• 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
• 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
• 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
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2023 2022
CONSOLIDATED
2023 2022
$’M $’M
16. RESERVES
Foreign currency translation reserve (157) (301)
Hedge reserve (1) (3)
Performance rights reserve 68 60
Defined benefits reserve 3 14
Acquisition reserve (72) (72)
(159) (302)
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.
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
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
$’M $’M
Earnings used in calculating basic and diluted earnings per share 37 172
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.
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CONSOLIDATED
2023 2022
$’M $’M
18. DIVIDENDS
(A) FINAL DIVIDEND PROPOSED
Dividend in respect of the six months to 30 June 2023:
25.0 cents per share 131 -
Dividend in respect of the six months to 30 June 2022:
25.0 cents per share - 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 131 n/a
25.0 cents per share (unfranked) dividend in respect of the six months to 30 June 2022 131 n/a
25.0 cents per share (unfranked) dividend in respect of the six months to 31 December 2021 n/a 131
25.0 cents per share (unfranked) dividend in respect of the six months to 30 June 2021 n/a 131
262 262
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated CONTINUED
financial statements
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:
CONSOLIDATED
2023 2022
$’M $’M
UNSECURED FACILITIES
Total facilities available:
Loan facilities 3,342 2,730
Overdraft facilities 170 126
Lease liabilities 261 267
Bank guarantees and letters of credit 1,894 1,923
5,667 5,046
Facilities utilized at balance date:
Loan facilities1 2,005 1,914
Lease liabilities 261 267
Bank guarantees and letters of credit 1,198 1,150
3,464 3,331
Facilities available at balance date:
Loan facilities 1,337 816
Overdraft facilities 170 126
Bank guarantees and letters of credit 696 773
2,203 1,715
The maturity profile in respect of the Group's total unsecured loan, overdraft facilities and lease liabilities is set out below:
Within one year 283 809
Between one and four years 1,923 2,289
After four years 1567 25
3,773 3,123
1
Excludes capitalized borrowing costs.
Worley
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
As at 30 June 2023
Due within one year 1,076 - 100 88 13 1,277
Due between one and four years 50 - 1,618 137 - 1,805
Due after four years - - 569 29 - 598
1,126 - 2,287 254 13 3,680
As at 30 June 2022
Due within one year 928 4 577 35 32 1,576
Due between one and four years 53 - 1,601 38 - 1,692
Due after four years - - 26 1 - 27
981 4 2,204 74 32 3,295
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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:
CONSOLIDATED
2023 2022
$’M $’M
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
As at 30 June 2023
Cash and cash equivalents - 4 61 7 26
Trade receivables - 1 42 22 13
Trade payables 2 (1) (15) (18) (7)
2 4 88 11 32
As at 30 June 2022
Cash and cash equivalents 25 5 79 4 37
Trade receivables - - 43 6 6
Trade payables - (2) (38) (9) (4)
25 3 84 1 39
CAD - - - 2
GBP - 1 - -
USD - 10 - 9
EUR - 1 - -
Other - 2 - 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 REPORTING DATE
EXCHANGE RATE SPOT EXCHANGE RATE
2023 2022 2023 2022
1
Individually immaterial, denominated in AUD
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As at 30 June 2023
Cash and cash equivalents 5.9 436 - - - - - - - 436
Bank loans 1 5.9 - - 30 - 605 200 - - 835
Notes payable 2.4 - - - 821 - - 349 - 1,170
Lease liabilities 4.5 - 90 72 48 31 11 9 - 261
As at 30 June 2022
Cash and cash equivalents 2.9 519 - - - - - - - 519
Bank loans 21
3.1 - 181 679 - - - - - 860
Notes payable 1.8 - 296 - - 758 - - - 1,054
Lease liabilities 4.3 - 90 69 49 34 21 4 - 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.
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
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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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
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Report 2023 169 169
Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
2023
$'M
ASSETS
Trade Receivables 144
Unbilled contract revenue 75
Cash 9
Total Assets 228
LIABILITIES
Trade and other payables (11)
Total Liabilities (11)
Net assets disposed 217
Sales proceeds1 239
Carrying value of net assets disposed (217)
Surplus of the disposal group, excluding selling costs and related expenses 22
Selling costs and other related expenses (45)
Total deficit of the disposal group, net of selling costs and related expenses (23)
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.
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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PRINCIPAL
PLACE OF 2023 2022 2023 2022
ENTITY BUSINESS PRINCIPAL ACTIVITY % % $’M $’M
Significant investments
Jacobs Engineering SA Joint Ventures Morocco Chemicals 50 50 145 127
Ranhill WorleyParsons Sdn Bhd Malaysia Energy 49 49 14 12
Other investments 37 50
196 189
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Financial statements
NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
1
Revenue as defined in note 3, Operating Segments.
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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:
CONSOLIDATED
2023 2022
$’M $’M
ASSETS
Current assets
Cash and cash equivalents 16 10
Trade and other receivables 27 46
Total current assets 43 56
TOTAL ASSETS 43 56
LIABILITIES
Current liabilities
Trade and other payables 32 47
Total current liabilities 32 47
TOTAL LIABILITIES 32 47
NET ASSETS 11 9
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NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
Bank guarantees outstanding at balance date in respect of contractual performance 1,198 1,150
Commitments not recognized in the financial statements 1,198 1,150
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1
Revenue and expenses exclude procurement revenue and expenses from associates.
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NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
CONSOLIDATED
2023 2022
$’M $’M
Land and buildings
At cost 348 334
Accumulated depreciation (68) (57)
280 277
Property RoU assets
At cost 569 534
Accumulated amortization (368) (335)
201 199
Leasehold improvements
At cost 238 243
Accumulated depreciation (211) (213)
27 30
Plant and equipment and RoU assets
At cost 427 401
Accumulated amortization (343) (324)
84 77
IT equipment
At cost 227 208
Accumulated depreciation (186) (174)
41 34
Total property, plant and equipment and RoU assets 633 617
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:
CONSOLIDATED
PLANT AND
LAND AND PROPERTY LEASEHOLD EQUIPMENT AND
BUILDINGS ROU ASSETS IMPROVEMENTS ROU ASSETS IT EQUIPMENT TOTAL
$’M $’M $’M $’M $’M $’M
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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
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
CONSOLIDATED
2023 2022
$’M $’M
1
In accordance with AASB 112 Income Taxes
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NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
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 1,000 6,000
Dividends received from:
Dividend revenue from associates 25,617 1,000
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 50,000 37,000
Current payables
Associates and related parties - 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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CONSOLIDATED
2023 2022
$ $
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.
CONSOLIDATED
2023 20221
$ $
1
FY2022 numbers were updated in accordance with the FY2022 disclosures update in the FY2023 Remuneration report.
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NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated financial statements
CONTINUED
The Parent Entity’s summary financial information as required by the Corporations Act 2001 is as follows:
2023 2022
$’M $’M
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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NOTES
Notes toTO THE
and CONSOLIDATED
forming part of the FINANCIAL STATEMENTS
consolidated CONTINUED
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
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.
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.
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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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 matter How our audit addressed the key audit matter
Revenue recognition and other related Our audit procedures, included the following,
balances amongst others:
Refer to note 4 - Revenue and other income
$11,324 million, note 8 – Current and non-current Developed an understanding of the key controls
trade receivables, contract assets and other associated with the recognition and
assets $1,973 million and $135 million measurement of revenue.
respectively
We tested the Group’s control over monitoring
As described in Note 4 to the consolidated and review of projects by attending a selection
financial statements, the Group measures of project review meetings and inspecting
revenue based on the effort expended relative to relevant documentation prepared for such
the total expected effort to complete the service. meetings.
Moreover, there are certain key estimates that We considered the appropriateness of the
drive the measurement of Group’s revenue and Group’s accounting policy in relation to the
its recognition in the consolidated financial recognition and measurement of revenue
statements. These estimates include: against the requirements of the Australian
Accounting Standards.
Percentage of completion, estimating
costs or extent of progress towards For a selection of projects based on qualitative
completion of work; and and quantitative factors, we performed the
following procedures amongst others:
Variable consideration including
accounting for performance incentives. o We inspected the signed contract
agreements to develop an understanding of
Auditing these estimates requires significant key contract terms.
judgement given the;
o We attended and/or inspected the
estimation uncertainty; and documentation for the project review
meetings for the projects selected based on
significant complexity involved in the above criteria.
estimating the costs or extent of progress
towards completion of work. 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
Given the geographical spread of the Group’s o We assessed the cost to complete estimate,
projects and the Group’s bespoke arrangements which is used to calculate the percentage of
with customers, there is significant judgement completion, by:
applied by management in assessing the
recoverability of long outstanding trade ‐ Evaluating the Group’s historical ability to
receivables and unbilled contract revenue which forecast costs to complete by comparing
are overdue beyond 121 days and therefore, it is the current cost estimate to the historical
considered as a key audit matter for the current cost estimate prepared by the Group’s
year audit. qualified professionals within the project
teams.
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Key audit matter How our audit addressed the key audit matter
year.
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Key audit matter How our audit addressed the key audit matter
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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.
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.
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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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
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Shareholder information
TOP 20 HOLDINGS OF FULLY PAID ORDINARY SHARES AS AT 7 AUGUST 2023
NAME SHARES % OF ISSUED CAPITAL RANK
Dar Al-Handasah Consultants Shair and Partners Holdings Ltd. 20 February 2023 123,794,870
T. Rowe Price Associates, Inc. 11 May 2023 34,748,359
John Grill and associated companies 16 November 2018 34,336,128
* 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.
UNMARKETABLE PARCELS
MINIMUM PARCEL SIZE HOLDERS SHARES
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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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)
$, $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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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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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.
Worley
Worley Annual
Annual Report2023
Report 2023 197 189
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Corporate information
Worley Limited
SHARE REGISTRY
ACN 096 090 158
Computershare Investor Services Pty Limited
DIRECTORS Level 3, 60 Carrington Street
John Grill, AO (Chair) Sydney NSW 2000
Andrew Liveris, AO (Deputy Chair and Lead Independent Director) Australia
Wang Xiao Bin Phone: 1300 850 505
Juan Suárez Coppel ANNUAL GENERAL MEETING 2023
Joseph Geagea, appointed 1 July 2023 Worley’s 2023 Annual General Meeting (AGM) will convene on Friday 20
Thomas Gorman October 2023 (AEDT). Meeting details will be included in the Notice of
Roger Higgins Meeting. The closing date for the receipt of external director nominations
Anne Templeman-Jones is Friday 1 September 2023 (AEST).
Christopher Haynes, OBE, resigned 30 June 2023
Martin Parkinson, AC
Emma Stein
Sharon Warburton
Chris Ashton (Chief Executive Officer and Managing Director)
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