NRW Holdings Limited (ASX: NWH) provides diversified services to the mining, energy, civil infrastructure and urban development sectors.
NRW Holdings reports its operations in three segments, which includes:
- The Civil business- includes NRW civil activities and the Golding civil and urban businesses.
- Action Drill and Blast (ADB)
- Mining Business- consolidates the mining businesses of NRW Holdings and Golding together with NRW’s mining support business AES Equipment Solutions.
Today (on 3rd June 2019), the company’s securities were placed in a trading halt at the request of NWH, pending it releasing an announcement to provide an update to the market regarding NRW’s mining contract with Gascoyne Resources Limited (ASX: GCY).
Recently, on 10th May 2019, NRW Holdings announced that it became a substantial holder in Gascoyne Resources by holding 86,238,410 ordinary shares of GCY with a voting power of 8.58%.
On 1st April 2019, NRW Holdings acknowledged the announcement made by Gascoyne Resources in relation to an equity raising of up to ~$24.4 million (before costs), comprising a ~$3.8 million placement and an underwritten ~$20.6 million entitlements issue.
Half Year Results
For the half-year ended 31 December 2018, NRW Holdings reported revenues, including revenue generated by associates of $521.1 million as compared to $345.3 million in the previous corresponding period, mainly driven by increased activity levels in Mining, due to a number of contract awards and the inclusion of Golding results for the full half-year period compared to four months in the previous financial year.
Further, the company reported an EBITDA of $74.3 million, an increase of 85% over pcp. During the half year period, the company’s net earnings increased to $28.2 million due to higher revenues and strong operating performance, particularly in the Mining segment.
During the period, the company’s net assets increased to $294.2 million, net debt improved to $12.8 million and gearing ratio declined to 4.3%. During the half year period, the company incurred a capital expenditure of $29.5 million, which includes the expenditure of new Liebherr 996 excavator deployed at the Curragh mine site.
From its Civil business, the company reported revenues of $163.8 million, and from its mining business, the company reported revenues of $310.1 million. Moreover, from its Drill and Blast, the company reported revenue of $63.9 million.
H1 FY2019 Results (Source: Company Reports)
For the half-year period, the Board declared a dividend of 2 cents per share, fully franked. The dividend was paid on 8th May 2019.
Now, let’s have a glance at the company’s share performance and the returns it has posted in the last few months. The stock of the company last traded at a price of $2.740, with a market capitalisation of ~$1.03 billion as on 31st May 2019. The stock has provided a YTD return of 71.25% and also posted returns of 39.44%, 18.10% and -5.84% over the past six months, three and one-month period, respectively. Its 52-week high price stands at $3.085, with an average volume of ~2,299,221.
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