NRW revises full-year profit guidance

NRW Holdings expects its annual profit to be in line with the previous year, following delays to major contracts with BHP Billiton, Citic Pacific and Fortescue Metals Group.

The Welshpool-based provider of contracting services to the resources industry today forecast a 2008/09 profit of between $30 million and $35 million.

The guidance is based on expected revenue of $510 million to $515 million for the year.

In 2007/08, NRW made a reported net profit of $32.8 million on revenue of $471.2 million.

Last month, the company was awarded a $200 million BHP contract for work at the major's Rapid Growth Project 5 and earlier this month NRW secured a $200 million contract, through a joint venture with VDM Group, for work at CITIC Pacific's port at Cape Preston.

"It had been anticipated that the recently announced contracts for BHP Billiton's RGP5 southern section and Citic Pacific's Cape reston project would make a significant contribution to the second half of FY 2009 however it is now expected that contributionwill flow into the first half of FY 2010, NRW said in a statement.

"Furthermore NRW's Cloudbreak to Christmas Creek Rail contract is now not expected to recommence until the second half of FY2010 and as such has also had an impact on second half FY2009 revenue."

The company added that its outlook remains optimistic considering current economic conditions.

Shares in NRW shed 7.5 cents to 81c at 10:44 AEST.