NRW wins $330m extension, posts loss

Civil contracting and mining services firm NRW Holdings has dipped into the red with a $120.6 million half-year loss, but announced a $330 million contract extension with Middlemount Coal.

The 639 per cent slide came as the company announced it had won a three-year mining services contract extension with Middlemount Coal, valued at about $330 million, which it said would maximise the cost benefit and utilisation of its equipment fleet.

NRW’s revenue rose 9.5 per cent to $570.4 million for the six months to December, but the loss was affected by a $134.9 million impairment in its Action Equipment Services subsidiary, which has been in a contract dispute over its agreement with Samsung C&T at the Roy Hill iron ore mine in the Pilbara.

“Discussions with Samsung have been constructive but the outcome remains uncertain hence the decision to recognise revenue only to the extent of cost incurred on the contract,” NRW chief executive Julian Pemberton said.

“With the critical path formation construction now complete and handed over, we have started working closely together with Samsung’s commercial team through an agreed process which has a targeted final contract resolution date of March 31 this year.

“The impact on the full-year financials will be communicated when those discussions have been concluded.”

NRW declared an interim dividend of 4 cents per share, fully franked.

NRW closed 9.3 per cent lower at 27.2 cents per share.