NRW dives on $120.6m loss
Shares in NRW Holdings fell after the mining contractor posted a first-half loss of $120.6 million, down from a profit of $22.4 million in the previous corresponding period.
The loss came despite a 9.5 per cent lift in revenue to $570.4 million.
The company attributed the disappointing result to a $134.9 million impairment on the value of its assets.
It also advised it had not yet resolved a previously flagged spat with Samsung C&T concerning differences over progress payments for a $620 million rail earthworks contract at the Roy Hill project.
Because of the ongoing dispute, the company recognised the contract at nil margin in its first-half accounts.
NRW said it was now working with Samsung through an agreed process which targeted a final contract resolution date of March 31.
Managing director Jules Pemberton said the impact on the full-year financials would be communicated when the discussions had been concluded.
"We remain committed to achieving a positive outcome on the contract, which we have performed on time and to a high quality standard," he said.
Speaking more broadly, Mr Pemberton said the company's first-half results were clearly very disappointing, but noted NRW's underlying pre-impairment result was inline with an operating update provided at the company's AGM in November last year.
"Despite the reported net loss, the group delivered a good cash result contributing to further debt reduction of $22.6 million in the six months," he said.
"Also particularly pleasing was the award of a three-year $330 million extension to the Middlemount contract announced this morning."
NRW said it would look to cut costs as it continued to respond to an industry marked by projects being cancelled or deferred because of weak commodity prices and increased competition to secure available work.
The company said its order book stood at $904 million, of which $200 million was secured revenue for the second half.
NRW held cash of $138.9 million at the end of December.
Shares in the company were off 3.5 cents, or 11.67 per cent, to 26.5 cents at 7.40am.
