NRW lifts dividend on record revenue, higher earnings

MAJOR Australian contract mining and engineering group NRW Holdings is paying a A4c/share interim dividend and has cut net debt to below $100 million on 28% higher year-on-year earnings of $132.8 million and a 44% yoy surge in first-half revenue to $1.17 billion.
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Staff reporter

The company said secured work underpinned the lower end of its $2.2-2.3 billion revenue guidance for the full year, and just over $1 billion of order intake in the first half expanded its order book at the end of 2020 to circa $2.8 billion. But margins on key Pilbara projects had been "impacted by resource availability due to continued resource constraints related to COVID-19 measures".

NRW said its mining and civil pipeline of tenders and prospects expected to be awarded in the next 12 months had increased to $14.1 billion, with about $5 billion of tenders submitted.

"Our strong first half performance has allowed the board to update our dividend policy, which will deliver an interim dividend of 4c per share, up 60% on the prior comparative period," said NRW CEO Jules Pemberton.

"Growth is expected to continue as a result of increasing expenditure on infrastructure projects at state and federal level, demand for commodities remaining strong and as a consequence of the recently announced Primero acquisition.

"Working closely with the Primero team since the acquisition announcement has confirmed the opportunities to expand our Minerals, Energy & Technologies specialised capabilities which will provide leverage for the combined expertise to pursue new business initiatives across a large pipeline of opportunities."

NRW was hit on the ASX this morning, dipping 16% to $2.35. It was above $3 at the start of this month.

The company has a current market value around $1.06 billion.