NRW HOLDINGS LIMITED NRW HOLDINGS HALF YEAR RESULTS
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17 FEBRUARY 2022
FY22 HALF YEAR RESULTS - OVERVIEW
FINANCIAL
- Revenue $1,160.0M and EBITDA of $133.6M in line with guidance.
- Earnings (Operating EBIT) up 26% to $74.6M high end of guidance.
- Significant improvement in Capital management.
onlyo | Gearing at 7%. |
o | Cash balance at 31 December $195.9M. |
o | Statutory cashflow from operations of $145.1M. |
o | Cash conversion circa 113%. |
o | Net debt reduced to $40.0M compared to $171.3M at 30 June (or $88.7M proforma post Boggabri sale). |
o | Dividend payments in the half of $22.5M. |
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• Interim dividend declared at 5.5 cents per share fully franked, up 37% on pcp. |
OPERATIONAL
• | Safety - improvement in TRIFR from 6.11 to 4.70. |
• | Karara mining services contract executed ($702M) - on schedule to commence March 2022. |
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• Expanded contract signed with Coronado Curragh Pty Ltd as well as renewals with CS Energy, Southern Cross Fertilisers and SIMEC.
• Primero secured circa $450M of new work including $290M for Covalent Lithium.
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COVID-19 IMPACTS
WORKFORCE
• Headcount currently lower, mostly in Civil where activity is also lower - issues experienced in FY21 not impacting current projects.
• Border closures as a result of the COVID-19 pandemic continue to impact available workforce. Omicron variant likely to have impact on absenteeism rates in the short term.
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- Current Pilbara Civil projects recognise revised labour rates and are currently fully manned mostly from core NRW uselong term crews.
- Recruiting and retaining workforce (WA) in Mining contracts is expected to remain a challenge. Some pressure on pecific trades (particularly fitters) - labour cost rates generally mitigated through rise and fall clauses.
- NRW Operator Training Centre at capacity to support WA Mining business.
- Primero core teams in place for Strandline and Covalent - sourcing electricians remains challenging.
SUPPLY CHAIN
• Key procurement risks included in contract commercial terms.
• Some shipping delays on capital equipment - mitigating actions in place.
• Some shipping delays on overseas supplied items being mitigated through project schedules.
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WORKFORCE AND SAFETY
SAFETY | TRIFR |
- Safety - improvement in TRIFR (Total Recordable Injury Frequency Rate) from 6.11 (Jun 21) to 4.70 (Dec 21).
PEOPLE
• Continued focus on the retention, training and development of our workforce of 6,200 (Dec 21). | |||
only | 98 apprentices employed. | ||
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o Development and training of 79 graduates and undergraduates. | |||
o Leadership and development courses completed by 332 staff. | |||
o In excess of 6,000 Learning Management System courses completed. | |||
• NRW Operator Training Centre providing training to new recruits and upskilling current employees. | |||
o Fully operational training facility - fleet of equipment up to 90 tonne dump truck. | |||
use | Working at heights, confined space, 4WD, lighting tower training and simulators. | ||
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o Verification of Competency (VOC) training and assessment undertaken by NRW trainers. | |||
o 60% of training centre graduates to date are female. | |||
o | Indigenous trainee engagement. | ||
o Recent graduates already mobilised to projects including Mt Webber, Dalgaranga and Iron Bridge. | |||
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Recent graduates with trainer Dianne Pearce. | Equipment training underway at NRW Operations Training Centre. | Training room at NRW Operations Training Centre. |
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CIVIL
• Volumes down as major Pilbara projects complete in FY21 - reducing pressure on labour market which impacted margins last year.
• Project margins recovering although residual impact of lower volumes on business cost base will continue to impact overall margin until volumes increase as anticipated in FY23.
• New work secured in resources includes projects for Rio Tinto at Nammuldi and West Angelas (circa $50M) and for BMA at Boomerang Creek, and Ironbark coal mine (combined
onlyvalue of circa $45M).
• Work secured in infrastructure includes the smart freeways program for Main Roads in JV (NRW share circa $25M) and work for the University of Queensland ($14M).
• Urban business in South East Queensland - remains very busy.
• Next phase of iron ore projects expected second half calendar 2022 (will increase iron ore c mmodity mix in future years).
FH FY22 | FH FY21 | |
Revenue ($M) | 226.9 | 474.7 |
EBIT ($M) | 9.9 | 16.3 |
Margin (%) | 4.4% | 3.4% |
• Currently bidding several major infrastructure projects in WA and QLD with calendar 2023 | |||||||||||
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commencement. | |||||||||||
PROJECT TIMELINE | |||||||||||
Koodaideri Southern Rail | |||||||||||
Iron Bridge Bulk Earthworks | |||||||||||
Iron Bridge TSF | |||||||||||
Gudai-Darri Solar Farm Project | |||||||||||
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Nammuldi WFSF Stage 3 | |||||||||||
West Angeles G2 | |||||||||||
FAL | |||||||||||
BORR | |||||||||||
Mitchell Freeway H2H | |||||||||||
I telligent Freeways Alliance | |||||||||||
South Walker Creek | |||||||||||
Peak Downs | |||||||||||
Ironbark | |||||||||||
Boomerang Creek | |||||||||||
Lendlease - Yarrabilba P4 | |||||||||||
20 | 21 | 22 | 23 | 24 |
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NRW Holdings Limited published this content on 16 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2022 22:43:03 UTC.
