It's been a turnaround day for the NRW Holdings Limited (ASX: NWH) share price. The company announced a new contract award for the Southwest Connex consortium this morning.
The news originally sent the NRW Holdings share price up to an intra-day high of $2.23. However, the company's shares have since retreated 1.85% lower to $2.12 cents at the time of writing.
Let's take a look at the company and the details surrounding the new contract.
About NRW Holdings
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.
Alliance contract
NRW Holdings announced that the Southwest Connex consortium has been awarded the alliance contract for the Bunbury Outer Ring Road project. The consortium comprises Acciona, NRW Contracting, Maca Civil, Aecom and Aurecon. NRW Contracting, a subsidiary of NRW Holdings, is a 40% partner in the alliance.
The construction of the Bunbury Outer Ring Road will deliver vital infrastructure. The new works aim to provide a safer and more efficient road system for the south-west of Western Australia.
The expected contract completion date for the project is in 2024.
NRW Holdings' CEO and managing director, Jules Pemberton, was pleased with the contract win. He said:
I am delighted that following negotiations with Main Roads the consortium has been awarded the contract for the Bunbury Outer Ring Road project. This announcement marks a significant milestone in NRW's strategic evolution to an Australian Tier 1 contractor status and specifically our desire to build a large delivery capability across the Government Infrastructure works sector.
The recent acquisition of BGC Contracting together with our existing capability in civil construction has both significantly accelerated and enhanced our ability to participate as a large construction partner in public works projects.
NRW Holdings share price history
COVID-19 aside, the company's share price has performed solidly over the past 4 years. The NRW Holdings share price traded for a little as 4.9 cents in early 2016, and now commands $2.09. This is an increase of more than 4,000% in just a few short years.
This year, the NRW Holdings share has fallen from its all-time high of $3.45 achieved in December 2019. Despite today's share price fall, the contract win is no doubt a positive announcement for the company.
