Ausdrill profit surges nearly 33%

Ausdrill has announced a strong first-half result, which the company attributed to its acquisition of Barminco.

The company reported an underlying net profit after tax of $39.8 million for the six months to the end of December, up 32.7 per cent on the previous corresponding period.

Ausdrill recorded revenue of $640.2 million, an increase of 45.6 per cent from the first half of the 2018 financial year.

It said it was on track to deliver its earnings guidance for this financial year.

The directors declared an interim dividend of 3.5 cents per share.

In August, Ausdrill announced it would acquire Barminco for $271.5 million.

Ausdrill managing director Mark Norwell said the half-year results demonstrated the strength of the expanded company.

“The new Ausdrill delivered both revenue and profit growth in the six months,” he said.

“Importantly, the expanded Ausdrill group also secured over $2 billion in new work since July 1 2018 and successfully integrated the Barminco business, ensuring the company is set to deliver on its FY19 guidance and is well positioned for FY20.

“Looking forward, we now have a more diverse and less capital-intensive group and have achieved this whilst maintaining a strong balance sheet that supports dividends and provides the flexibility to deliver on the strategy that has now been established.”

The company also announced the permanent appointment of Peter Bryant as its chief financial officer.

He held leadership roles in a number of companies including Seven West Media and GRD and most recently he served as CFO of Barminco for five years.

Mr Bryant replaces Theresa Mlikota, who in January announced she would join Adelaide Brighton.

Shares in Ausdrill were up 2.43 per cent to trade at $1.68 at 1pm AEDT.