Conceding the 2013 financial year was its most challenging time since the global downturn a few years ago, the mining contractor managed to report revenue, within guidance, at $A1.37 billion – an increase of 1% on the prior corresponding period of $1.36 billion.
However, full-year net profit after tax declined 23.7% from $97.1 million to $74.1 million.
Group revenue was hit by weakness in the company’s mining division due to contract terminations at Fortescue Metals Group’s Solomon and Christmas Creek operations as well as NRW’s Guinean operations at Simandou.
As a result revenue from the division fell to $404.5 million, compared to $542.2 million year on year.
Earnings before interest and tax totalled $119.4 million, down from $154 million in FY12.
The company’s civil division performed well, with record revenue of $860.6 million representing an 18% increase on the previous financial year.
“Particularly pleasing for the civil division was reaching a significant milestone in our diversification strategy as we completed our first major project in the oil and gas market at Wheatstone, as well as our first large-scale government infrastructure works on the Great Eastern Highway Alliance,” NRW said.
During the period, NRW also attained a new client in the iron ore market after it was awarded a bulk earthworks contract on the Roy Hill development in Western Australia.
Action drill and blast experienced continued strong growth during the year, with revenue up 33% to $150.5 million.
The company was awarded two significant multi-year contracts at FMG’s Cloudbreak mine and the Isaac Plains coal project in Queensland’s Bowen Basin.
Action mining services, meanwhile, experienced a 10% decreases in revenue to $41.8 million.
NRW said FY13 proved a tough year for the company.
“The 2013 financial year provided NRW with its most challenging year since the global financial crisis, as contract termination and delayed award and commencement of projects resulted in a number of one-off and other costs incurred across the business,” the company said.
One-off expenditure included redundancy costs of $5.4 million as the company’s workforce dropped from a peak of 4821 people in August 2012 to 2283 at the end of June 2013.
Its workforce has been stripped back 50% year on year, with employee numbers totalling 4592 at the end of June 2012.
The company also incurred $13 million in holding costs for personnel and plant.
Looking ahead, NRW retains a positive outlook for the short to medium term despite the significant downturn across the resources industry.
“The company will continue to maintain focus on its core domestic markets of iron ore and coal, with expansion and related infrastructure works still underway and a number of new projects in the planning stage,” NRW said.
“We are also working on growing our exposure to markets such as LNG and CSG.”
The company will also continue to assess acquisition opportunities close to home and abroad in order to add value to its service delivery model.
Work in hand is valued at $1 billion, while tender activity remains strong with more than $3.6 billion in active tenders.
The company had $131 million cash on hand and has declared a final fully franked dividend of 5c to total 13c for the full FY.
NRW expects revenue of $1-1.2 billion for FY14, of which 60% is already secured.
Shares in NRW were sitting at $1.14 prior to market opening.
