The NRW Holdings Limited (ASX: NWH) share price is on the slide today despite the company announcing a new contract award and an extended agreement. In early-afternoon trade, the diversified service provider's shares are swapping hands for $2.05, down 0.49%.
Contract award
The NRW share price is failing to hold onto earlier gains after the company released two positive updates this morning.
In the first of its releases, NRW advised that its wholly-owned subsidiary, Golding Contractors, has been awarded a civil works contract. The award was provided by ASX-listed real estate and investment group Lendlease Group (ASX: LLC).
Under the agreement, Golding Contractors will complete general subdivision and related infrastructure works at the Yarrabilba residential estate in Logan, Queensland.
NRW highlighted that the contract win extends its relationship with Lendlease, which began in October 2017.
The civil works project is expected to generate around $50 million in revenue for NRW. Works are scheduled to commence next month and be completed within the next three years.
Extended contract
In a second announcement today, NRW revealed that Golding Contractors has received a 12-month contract extension from Wonbindi Coal. The renewed deal will see Golding Contractors continue its works at the Baralaba North Mine.
The new award will add roughly $120 million in extra revenue for Golding Contractors, up until June 2022.
About the NRW share price
NRW Holdings is an Australian company that provides diversified services to the resources, civil infrastructure, and urban development sectors.
The company has a workforce of more than 7,000 people with 100 active projects. Extensive operations are located in Western Australia, Queensland, South Australia, New South Wales and Victoria.
The NRW share price has climbed more than 70% over the past 12 months, but is down by around 30% year to date. The company's shares reached a high of $3.19 earlier this year, before trending lower.
Based on valuation grounds, NRW has a market capitalisation of around $949.2 million, with approximately 456.3 million shares outstanding.
