Mining services group Ausdrill has reported a record net profit of $112.2 million for the 12 months to June 30, a 53 per cent jump the company said was the result of its expanded service offering.
Ausdrill announced today a 27 per cent rise in sales revenue, to $1.059 billion for financial year 2012, driving the rise in profit, which exceeded company forecasts.
The company announced final dividend of 8 cents per share, fully franked.
Managing director Ron Sayers said the result was Ausdrill’s eighth consecutive year of record profits.
“Over the past 12 months we have grown the group by winning work from existing customers, expanding into new markets and building our relationships with the major operators in the mining and energy sectors,” Mr Sayers said in a statement.
“Exploration drilling now accounts for just 11 per cent of our revenues. This places us in a good position as any slowdown in the mining industry typically has a greater impact on demand for exploration services than production services.
Mr Sayers said the company’s strategy over the next 12 months would remain focused on diversification, with Ausdrill targeting revenue growth of 15 per cent.
Targeted areas for expansion include underground contract mining services in Australia, manufacturing in WA and Queensland, and the introduction of additional services to complement its hydrogeological drilling services.
Analysts viewed Ausdrill's $165 million equipment acquisition this week of the Best Tractor Parts Group as being linked to a high gold price and a vote of confidence in the mining boom.
"Based on current trading conditions, and excluding the effects of the Best Tractor Parts acquisition, the board is confident that continued growth can be achieved in 2012/13 with a targeted growth rate of 15 per cent in revenues whilst maintaining similar operating margins," the company said in a statement.
Ausdrill stocks closed three cents up at $3.49.