The Worley Ltd (ASX: WOR) share price is one to watch this morning after the company announced a new joint venture (JV) in the United States (US).
What did Worley announce this morning?
Worley and XENDEE Inc have created a US incorporated JV called VECKTA Corporation. VECKTA will own and operate a cloud-based market platform for microgrids and distributed energy systems.
Microgrids are a subsystem which split from the main power grid and form a contained network of their own.
The Worley share price will be on watch in early trade following the after-market announcement yesterday afternoon.
XENDEE’s core energy configuration software will be linked to the cloud-based platform with access to a global network of equipment, finance and project delivery providers through Worley.
The VECKTA JV is the latest collaboration between the 2 companies, which have a relationship dating back to 2018. Worley will retain 51% ownership with the remaining 49% being held by XENDEE.
What does this mean for the Worley share price?
The Worley share price is currently trading flat at $14.30 per share, having had a volatile couple of days.
It will be interesting to see how shareholders react when the ASX opens later this morning.
Given the existing relationship between the 2 companies, I’d expect the Worley share price reaction to be relatively muted.
Is Worley a good buy at the moment?
The company’s shares are currently trading in the middle of their 52-week trading range at $14.30 per share.
It’s been a busy start to November with Worley signing a number of new or extended contracts to kick off the month.
The Worley share price is pricey at 38.6x earnings right now, but does also boast a $7.4 billion market cap.
Worley currently yields a tidy 1.66% per annum and is up 26.10% to be outperforming the S&P/ASX 200 Index (INDEXASX: XJO) so far in 2019.
The post Worley share price on watch after announcing new energy JV appeared first on Motley Fool Australia.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019