Mining contractors post mixed results

Three local mining contractors have released their half-year results today with mixed outcomes, as Ausdrill posted a big increase in profit while MACA and Swick Mining Services both registered a decline in profit despite increased revenue.

Ausdrill reported an after-tax profit of $35.3 million, up 163 per cent on the previous corresponding period, while revenue jumped 17.9 per cent to $439.7 million.

The company announced an interim dividend of 3.5 cents per share.

Managing director Ron Sayers, who recently announced he will retire next year, highlighted growth potential in the company’s African operations.

“Tendering activity remains at record levels due to the vast number of opportunities for new projects in Africa,” Mr Sayers said

“We expect this will translate over time into contracts for both our African mining services team as well as our African underground mining services joint venture.”

Shares in Ausdrill were up 7.9 per cent to $2.86.

Meanwhile, Maca’s net profit dropped 28 per cent to $12 million, despite an 18 per cent increase in revenue to $285 million.

The company said operational losses within the MACA Interquip segment and Victorian civil contracts had caused a $3.8 million decrease in net profit.

Maca will pay an interim dividend of 3 cents per share.

Earnings before interest, taxes, depreciation and amortisation totalled $37.8 million, a 28 per cent decline from the previous year.

Maca shares fell 7.1 per cent to $1.50.

Swick recorded a net loss of $1.2 million for the half year, compared to a $473,000 loss in the previous year.

Revenue for the period was up 9.7 per cent to $71.1 million while Ebitda fell 9.9 per cent to $7.1 million.

The company’s Ebitda margin was 10.1 per cent, down from 12.3 per cent last year.

Managing director Kent Swick said demand for drilling rigs was rising.

“Whilst rig demand is on the increase, Swick is carefully considering its strategies for asset allocations to its client group,” he said  

“Clearly the industry needs an uplift in rates and Swick will work with its clients as renewals present to secure appropriate rates to ensure target financials are achieved at each and every drilling site.”

Shares in Swick finished down 2.2 per cent at 22 cents each.