NRW sees drop in revenues on latest results

NRW has announced a drop in revenues year on year, but is still forecasting a positive 2014.

In its latest results, the contractor announced revenues of $520.9 million, a 35% fall year on year from the 2013 recorded result of $810 million.

EBITDA also fell for the company at a similar rate, dropping 36% year on year from $101.4 million to $64.4 million.

It also suffered a major drop in NPAT, falling 54% from $48.6 million to $22.4 million.

However it did see an improvement in net debt, paying it down from $88.6 million to its current $39.8 million level.

It suffered most in its mining division, due to much higher activity in the first half of last year compared to this half, leading to more than a 60% drop in revenues; it will look to similar EBIT generation year on year.

The contractor has predicted a more positive year ahead however, with bidding activity already improving over the last six months, although “market conditions are expected to remain competitive during 2014”.

NRW has recorded an upswing in its order book, increasing the value of work by $300 million to $1.3 billion.

“The award of new contracts during the period, existing contracts which contribute to the $1.3 billion order book; and a robust tender pipeline provide the basis for revenue growth in the second half and good visibility for FY15,” NRW said in a company statement.

Jules Pemberton, NRW's managing director, said "whilst overall market conditions remain challenging the business was awarded a number of new contracts and extensions during the half, collectively valued at $820 million".

"Securing this contracts has helped maintain the Group's order book stability over the medium term."

The contractor is currently focusing on mobilising its workforce for the Roy Hill iron ore project, valued at $620 million, as well as a number of other contracts for BHP and Fortescue.

It has also carried out internal operations focused on slashing its injury rate, and seen a dip in its TRIFR from 4.98 to 3.64 year on year.

Importantly, it was also LTI free for 2013, which NRW in part attributed to the establishment of its ‘5 Golden Rules’ which formed the basis of its onsite safety behaviour.

It has reconfirmed revenue guidance at $1 to $1.2 billion for the full year. 

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