Mining services business Ausdrill has delivered a solid full-year result on the back of strong performance in its gold operations in Africa, and is targeting further growth in the year ahead.
Mining services business Ausdrill has delivered a solid full-year result on the back of strong performance in its gold operations in Africa, and is targeting further growth in the year ahead.
Perth-based Ausdrill announced a 53.3 per cent surge in net profit to $31.4 million for the 2017 financial year, with revenue up 4.5 per cent to $776.3 million.
It also grew pro-forma earnings by 8.6 per cent to $154.5 million, and declared a final dividend of 2 cents per share for a full-year payout of 4 cents per share, fully franked.
In a statement, managing director Ron Sayers said the company’s growth in Africa, combined with cost reductions and restructuring across the group, were key drivers behind the results.
“Over the past 12 months we have won $1.6 billion worth of new projects and contract renewals,” he said.
“This includes four significant new jobs in Africa and the renewal of three key contracts in Australia.
“Our project pipeline is exceptional and with our deep and long-standing relationships with the major mining companies operating in both Australia and Africa, Ausdrill is in a very strong position to continue to deliver growth in the years ahead, in what remains a challenging but stabilising market.”
Over the 12 months to June, Ausdrill expanded its employee headcount by 19.3 per cent to 4,582 personnel. However, employee numbers in Australia decreased on the back of the group’s ongoing operational restructure.
Mr Sayers said that, based on the level of work in-hand, coupled with expected contract renewals, Austral was targeting 30-40 per cent profit growth in FY18.
“We have secured and are mobilising new projects which are expected to deliver significant revenue and profit growth during FY18 and beyond,” he said.
“The African tender pipeline in particular will continue to be a driver of earnings growth beyond FY18.
“We believe Ausdrill is well placed to secure a significant share of these projects.”
Ausdrill shares were 0.4 per cent lower to $2.19 each at the close of trade.
