NRW rides out COVID-19 off the back of contract success

Image: NRW

NRW Holdings has released a performance report for April 2020 that shows the company remains in good stead following a string of successful contracts and acquisitions this financial year.

NRW stated that its purchase of BGC Contracting that was announced in November last year was “progressing well”.

RCR Mining Technologies (RCRMT), an NRW subsidiary, was also awarded a contract alongside DIAB Engineering for a $17 million fabrication package for Newmont’s Tanami Expansion 2 project in New South Wales.

“The award by Newmont to RCRMT provides an opportunity to bring both RCRMT and DIAB Engineering (acquired as part of the BGC Contracting transaction), together to deliver this important project,” NRW chief executive and managing director Jules Pemberton said.

“The ability to deliver this work from our regional facilities, in Bunbury, Geraldton and our Welshpool facility, to a major Australian project reflects the growing capability of NRW in the Australian manufacturing sector to provide specialised capital equipment for mining clients.”

Operations have also continued to manoeuvre through COVID-19, with NRW continuing to implement health and safety precautions among its employees.

No material impacts to its supply chain have been endured by the company, nor have any of its four business divisions (civil, mining, drill and blast and mining technologies) faced material changes to their scheduled activities.

“I am incredibly proud of the manner in which our people have worked through the challenges of the last few months,” Pemberton said.

“We have had to make significant changes to the way we work but have been able to safely do that whilst supporting our clients to meet project objectives and day-to-day operational requirements.”

April also marked the completion of tunnel boring at the Forrestfield Airport Link in Western Australia, which NRW has described as a “major milestone” for the joint venture project they are assigned to alongside Salini Impreglio.

NRW Holdings is also likely to reach its $2 billion revenue guidance for the 2020 financial year.

Despite the start of the year seeing NRW’s share prices drop by 53 per cent in the three months to April, the company has maintained stable results.

Record revenue of $1.6 billion has been achieved in the 10 months to April 2020, along with an improvement to net debt to $115 million.

NRW expects its Australian Accounting Standards Board 2016 (AASB 16) debt to drop to $60 million by the end of June.

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