NRW delivers solid outlook

CIVIL and mining contactor NRW Holdings says its guidance for 2018 is looking good as it moved to wrap up the current half, with key metrics all up over the same period last year, including a prediction that earnings will be up 100% on the December half of 2017 to A$45 million.
NRW delivers solid outlook NRW delivers solid outlook NRW delivers solid outlook NRW delivers solid outlook NRW delivers solid outlook

NRW is making big gains in the coal space since its acquisition of Golding.

Haydn Black

Reporter

Revenue is now tipped to come in at around $500 million, up 45%, while EBITDA is expected to be around $70 million compared to $40.3 million in the prior comparative period, once the one-off costs associated with the Golding acquisition are accounted for. 
 
"Despite some weather impact on Queensland projects during October activity levels for the year to date remain on track to deliver full year revenue in line with our guidance of $1.1 billion," managing director Jules Pemberton said.
 
He said the outlook continued to improve across all parts of the business.
 
The company has had a number of contract extensions over the past month, including a $500 million, five-year win with takeover target Stanmore Coal for mining at Isaac Plains East coal mine in Queensland. The contract will run from 2019 to 2024, and covers the potential transition to Isaac Downs and an option to operate the coal handling and preparation plant if required.
 
Golding also won early contractor involvement with Fitzroy Australia Resources for the provision of project development services for Ironbark No. 1 coal mine, also in Queensland, providing detailed design, costing and project scheduling for the civil and mining services required to develop the mine from late 2019.
 
NRW resumed making dividend payments mid-year thanks to an improved outlook, and it posted a mid-year 48% surge in net profit after tax to $42.2 million from revenue of $754.3 million.
 
In August, contracts covering $950 million of work had been secured and it was tendering on a further $6 billion for the next few years. 
 
The promising guidance saw the company's shares rise to $1.95, capitalising the company at nearly $725 million. NRW has traded between $1.16 and $2.17 over the past year. 

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