Drilling Business performing strongly on long term contracts and new work
Drilling business revenue of $72.7m, EBITDA of $14.9m at a 20.5% margin
Underground Drilling Revenue of $68.7m, EBITDA of $13.5m at 19.7% margin
61 underground diamond drill rigs deployed globally at end of half
Swick GenII rigs now being sold to open market with four rigs sold
Sale of Surface RC business into the stronger market for $6.4m cash
* Strong balance sheet with low gearing
* Interim dividend of 0.45cps (fully franked), up 50% over pcp
* Continued priority on safety – TRIFR of 12.7 (6.4 in 1H FY20)
* Solid foundation for 2H FY21 as a result of contract renewals, new work and revenue diversification opportunities
Western Australia – Swick Mining Services Limited (‘Swick’, ASX: SWK), a leading provider of high-quality underground and surface mineral drilling and mineral analysis services, announces its results for the six-month period ended 31 December 2020 (1H FY21).
1H FY21 FINANCIAL RESULTS
Swick reported Total Group Revenue of $72.8 million in 1H FY21 ($80.3m in 1H FY20) and EBITDA of $11.8 million (1H FY19: $10.8 million). In 1H FY21 the Company delivered significantly higher profitability based on operational improvements across all regions.
EBIT rebounded to $3.2 million up 276% compared to prior comparable period. The return to positive EBIT reflects the significantly increased profitability on 1H FY20 driven by stronger rig performance from existing and new work and higher utilisation at target rates.
Swick continued to generate healthy positive cashflow with net cash flow from operations before interest and tax of $6.5 million in 1H FY21, reflecting an EBITDA cash conversion rate of 55%.
The Company has ended 1H FY21 with a strengthened balance sheet, with low gearing and net debt of $9.5 million, which is expected to reduce further in 2H FY21 following completion of the sale of the RC Drilling business. The balance sheet position and positive Group cash flow has supported the declaration of a fully franked interim dividend of 0.45cps. The Company expects to maintain this level of dividend for 2H FY21.
Please click here to view the full ASX Announcement.
This is not a CAPTIS article. Originally, it was published here.