NRW Holdings Limited (ASX: NWH) saw its share price jump 45% to 58 cents, after reporting strong 2016 financial results.
The mining services company appears to have survived a shocker few years in the dark and has come out the other side stronger and better.
Today, NRW reported a net profit after tax of $21.5 million and earnings per share (EPS) of 7.7 cents on revenues of $288 million for the 2016 financial year (FY16).
Here are a few other positives from today's release:
- Debt reduced by $59.3 million to $107.6 million, and further $37.4 million due to repaid in FY17
- Cash holdings increased to $37.2 million
- Overhead costs slashed by 40% compared to last financial year
- earnings before interest, tax, depreciation and amortisation (EBITDA) of $47.4 million and EBITDA margin of 16.4%
- $577 million of new work secured during the year, taking order book to ~$1 billion
- Of that, $325 million is secured revenue for FY17 and $261 million secured for delivery in FY18
- Signs of stability in resources and infrastructure say NRW, with increasing tender opportunities
Additionally, management says debt reduction and clearing all debt balances within the next 30 months are top priorities.
It seems the mining services sector is stabilising, which should be good news for the likes of the major players including Monadelphous Group Limited (ASX: MND), MACA Ltd (ASX: MLD) and Ausdrill Limited (ASX: ASL).
