25/02/2009 - 15:29

Ausdrill posts record interim profit

25/02/2009 - 15:29

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Drilling contractor Ausdrill has delivered a record net profit after tax of $25 million for the first half of fiscal 2009, up 52 per cent on the previous corresponding period.

Ausdrill posts record interim profit

Drilling contractor Ausdrill has delivered a record net profit after tax of $25 million for the first half of fiscal 2009, up 52 per cent on the previous corresponding period.

The result includes a $2 million expense incurred for the defence of the Macmahon Holdings takeover bid and a pre-tax unrealised foreign exchange gains of $6.4 million.

Revenue was up 46 per cent from $187.2 million to $273 million while earnings before interest, tax, depreciation and amortisation rose 59 per cent to $66.1 million.

"The result was achieved in spite of the global economic crisis that has seen a marked slowdown in activities from the levels seen only a few months ago, and it is unrealistic to expect that Ausdrill will not be affected by these factors," the company said.

The company said it has had one contract suspended and its operations have been affected by the closure of Norilsk Nickel's Black Swan mine, which resulted in four drill blasthole drills being stood down.

"In addition we have seen a slowdown in the demand for exploration rigs in line with current market conditions," Ausdrill said.

"At the early stage of the crisis we did see reduced production on some sites in Africa, most of which have since returned to full production."

Over the reporting period, the company's net debt has increased to $168 million, due in part to the falling Australian dollar.

At the end of December 2008, the company had $53.9 million in cash and cash equivalents, down from $106.7 million from the previous corresponding period.

The directors have declared an interim dividend of five cents per share, fully franked.

 

 

 

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