Drilling products company Imdex has announced a 59 per cent jump in revenue to $46.9 million for the first quarter of 2011.
Drilling products company Imdex has announced a 59 per cent jump in revenue to $46.9 million for the first quarter of 2011.
The result exceeded the company's previous quarterly high of $43.2 million in the first quarter of 2009, before the global financial crisis.
In a statement to the Australian Securities Exchange Imdex said the company's earnings before interest, tax and amortisation was also up significantly to $11.3 million from $4.2 million in the first quarter of 2010.
"EBITA of $11.3 million also represents a recovery due to robust business activity that occurred in all four major mining regions, namely Asia Pacific, Africa, Canada and Latin America," the statement said.
"The Directors are pleased with the first quarter results as they demonstrate the leading nature of Imdex's products as well as the strength of its business model," said Imdex managing director Bernie Ridgeway.
"While commodity prices and activity levels in both the current time, we are well aware of the concerns that remain about the global economic situation and that there is still potential for a number of issues to have a negative effect on the demand for commodities.
"However, we remain cautiously optimistic about the balance of FY11 and continue to explore opportunities to grow the business both organically and through acquisitions," he said.
See company statement below:
Imdex Limited (ASX: IMD) is pleased to announce that it has performed strongly over the first quarter of the 2011 financial year (1Q11). Imdex is scheduled to hold its 2010 Annual General Meeting at 11am (WST) today. The meeting will include information on the Company's performance over 1Q11 along with a review of FY10 results previously
announced to the market.
The headline unaudited results for 1Q11 are:
- Revenue up 59% to $46.9 million (1Q10: $29.5 million), comprising:
o Drilling Fluids and Chemicals Division revenue up 50% to $30.8 million (1Q10: $20.4 million)
o Down Hole Instrumentation Division revenue up 77% to $16.1 million (1Q10: $9.1 million)
- EBITA up significantly to $11.3 million (1Q10: $4.2 million)
Imdex's unaudited result for 1Q11 was a strong one. Revenue of $46.9 million is a new
quarterly record for the Company and exceeds the previous quarterly high of $43.2 million in 1Q09 which was prior to the global financial crisis. The oil & gas market contributed 15% of revenues for the Quarter.
The strong revenue generated by the Minerals Division reflects the rebound in global drilling activity and an increase in mineral exploration expenditure. Metals Economics Group, Canada, indicated in late September 2010 that due to buoyant commodity prices and increased liquidity, they expected 2010 non ferrous exploration expenditure to be up by more than 44% (after the 42% decline experienced in 2009).
EBITA of $11.3 million also represents a recovery due to robust business activity that
occurred in all four major mining regions, namely Asia Pacific, Africa, Canada and Latin
America.
Recent acquisition, Fluidstar also made a positive contribution to revenue and EBITA in themonth of September 2010.
Commenting on the first quarter performance, Imdex Managing Director Bernie Ridgeway said, "The Directors are pleased with the first quarter results as they demonstrate the leading nature of Imdex's products as well as the strength of its business model. While commodity prices and activity levels in both the current time, we are well aware of the concerns that remain about the global economic situation and that there is still potential for a number of issues to have a negative effect on the demand for commodities. However, we remain cautiously optimistic about the balance of FY11 and continue to explore opportunities to grow the business both organically and through acquisitions."
