The widespread slowdown in exploration spending has driven down drilling fluids and equipment supplier Imdex’s earnings, with the company lodging a 59 per cent drop in net profit for the 2013 financial year.
Imdex today reported its net profit for FY2013 fell to $19.4 million, down from $45.8 million in the previous financial year.
Earnings before interest, taxation, depreciation and amortisation were down to $35.2 million, from $75.2 million in FY2012.
The company’s combined revenue was down 11 per cent to $249.4 million.
Managing director Bernie Ridgeway said the company’s performance was adversely affected by subdued activity in the minerals sector.
“Due to the cyclical nature of the minerals industry, in recent years we have adopted diversification strategies including plans to grow our business globally, expanding into new markets – specifically oil and gas – and investing in the development of innovative products and technologies,” he said.
Mr Ridgeway said the company’s oil and gas division recorded record revenue in FY2013, continuing its run of year-on-year growth since FY2010.
Imdex will pay a fully franked final dividend of 0.4 cents per share, taking its total FY2013 dividend to 2.9 cents per share.
The company said it expected mining activity to remain subdued in FY2014, while it expects the oil and gas sector to provide significant opportunities for long-term growth.
At 12:20PM, WST, Imdex shares were down 11.8 per cent, at 67 cents.
