NRW to ride surging resources sector

Image: NRW

NRW Holdings is confident in “strong activity levels” across the resources and infrastructure sectors in the 2020 financial year.

The company has estimated that $1.1 billion of work is scheduled for delivery in the 2020 financial year, equating to half its current order book of $2.2 billion.

Its confidence follows the 2019 financial period in which the company secured major civil contracts with Western Australia’s largest iron ore producers, such as BHP (South Flank), Fortescue Metals Group (Eliwana) and Rio Tinto (Koodaideri).

This resulted in a net profit after tax and amortisation of $40.4 million, an increase of 19 per cent in the 2019 financial year.

NRW chief executive Jules Pemberton also attributed NRW’s success to mining contract extensions and improved performance in drill and blast.

“Our highly successful acquisition of the RCR Mining Technologies business has added to our diversified capability offering, and the services and people are now well integrated with the NRW business,” Pemberton said.

“This acquisition forms part of NRW’s strategy to build a broader, through the cycle services business.”

NRW’s successful year of growth was, however, slightly offset by Gascoyne Resources’ voluntary administration, according to Pemberton.

“Financial year 2019 has been another year of strong growth, with a significant increase in revenue to $1.1 billion while maintaining a strong cash balance of $65 million,” he said.

“The results were, however, impacted by the impairment of pre-administration balances totalling $33.5 million relating to Gascoyne Resources entering into voluntary administration.”

NRW’s revenue jumped 49 per cent compared with the previous period, equalling $1.1 billion, while earnings before interest, tax, deprecation and amortisation rose 54 per cent to $144 million.

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