2022 General News etc, page-293

Bridget had news yesterday … that may or may not be relevant…
(Jules said a ways back that acquiring more equipment might be useful!)

Cheers
PS  The Australian also said Clough is likely to be sold imminently to WeBuild - previously known as Salini, ie NRW’s JV partner in the Forrestfield Airlink build..
Might it then carve off divisions for NRW Holdings?


https://www.theaustralian.com.au/bu...t/news-story/8bf3bd057f4e8af0c3f5ce6deea1aa44


Mining equipment company HSE on the market

Companies which service coal miners are out of favour with investors.

• BRIDGET CARTER
  DATAROOM EDITOR
  
• 5:13PM NOVEMBER 3, 2022

The Swire Group is understood to have hired investment bank UBS for a sale of its HSE Mining business.
HSE started operating in 1991 as a small-scale earthmoving contracting business and successfully grew to a mining services and equipment rental company that services mine operations throughout Australia.

The Perth-based company has developed extensive expertise in contract mining and specialised large mining equipment rental.
The mining services contractor generates about $40m of annual earnings before interest, tax, depreciation and amortisation.
Services range from scoping studies, greenfield turnkey construction, operational optimisation, rehab or reclamation of land.

John Swire and Sons purchased 80 per cent of the company in 2013 when HSE owned 212 large mining assets including dump trucks and excavators as well as more than 370 items of ancillary equipment such as water trucks, graders and dozers.

While the company’s earnings stream may be lucrative right now with coal prices soaring, the challenge will be convincing buyers to ascribe a strong valuation to HSE.

In the Australian listed space, mining services providers are not in favour with investors who are deterred by the industry’s slim margins and high capital investment requirements.
Companies which service coal miners are even less favoured as evidenced by Emeco, which counts coal miners as customers.

Emeco’s market value is $418m – higher than it was during the middle of the year after launching a share buyback – but still not reflective of a group that generated $250m in annual earnings before interest, tax, depreciation and amortisation.

Swire Group is a Hong Kong and London-based British conglomerate owned by John Swire and Sons and invests in energy, oil and gas, property, agribusiness, industrial sectors and marine services. It is also the largest shareholder in Hong Kong airline Cathay Pacific.

The business is up for sale as another services provider, Downer EDI, is selling its Australian Transport Projects business through investment bank Macquarie Capital.