Just thinking about the half year results coming up late Feb and...

Just thinking about the half year results coming up late Feb and what’s on the table that we know about. Anyone care to guess what net debt, cash generation for the half will look like?

End of fy2020

• Headline net debt $140m, gearing 29%
• Expecting all corporate debt to be paid by Mar 2021 (pre PGX acquisition)
• Fy20 revenue $2bn, EBITDA $250m
• Fy21 revenue guidance $2.2-2.3bn (reconfirmed end of November)
• Order book (including BORR) $3.5bn
• Tender pipeline $12.9bn

Positive News:

• July - RCR MT engineering for Macarthur (pre results)
• Oct - BORR JV contract signed with NRW set for 40% of $852m over approx 3 years (preferred contractor was pre results)
• Oct - GCY Gascoyne relisted, $30m approx exposure now recoverable and also an improved larger contract by $180m (over 7 years) with GCY for mining
• Dec - Golding +$50m extra contract for Coronado coal
• Jan - $80m RCR crushing/conveying contract at FMG
• Jan - mining contract for Nathan River Resources $130m over 3 years
• Jan - Preferred contractor (JV) Mitchell highway improvements $45m

Negative News:

• Oct - Altura lithium mining halt and administration: 9m net exposure - creditors agreed DOCA: maybe NRW have received some of this back?

Other/in progress:

• Primera takeover - approx 70% ownership currently. $310m (updated Jan) contracted at 6-8% margins for fy2021. Consideration $50m cash (added to net debt) and $50m NRW script. I believe PGX can be considered to have no net debt even if a disputed contract (Wartsila) goes against them. They also have $750m+ of EPC preferred contractor orders waiting for final investment decisions.
• Recent acquisitions BGC Contracting and RCR/DIAB should have been integrated fully and no new acquisition costs in 2021H1