Perenti beats profit guidance, flags positive FY20

Shares in Perenti Global, formerly Ausdrill, have surged as much as 17 per cent today, after it announced a full-year underlying net profit of $103.1 million.

Its underlying net profit for fiscal 2019 was a 68.7 per cent jump from its $61.1 million figure in the prior corresponding period, and $5.1 million higher than its guidance.

Perenti's statutory revenue was up 89.1 per cent, to $1.638 billion, following the $271.5 million acquisition of Barminco last August.

The company said it was targeting underlying net profit of around $140 million for this financial year, on the back of a positive local market, as well as a global and regional conditions that were likely to remain favourable.

The company has an order book of around $7 billion.

Perenti managing director Mark Norwell said the results demonstrated the successful integration of the Barminco business.

“We have evolved from an Australian drilling business into a global mining services company, with a workforce of more than 8,000 people working at more than 50 projects across four continents,” he said.

“Perenti is well positioned for growth in FY20.”

Earlier this month, Ausdrill announced the adoption of its new brand and identity, Perenti Global, to better reflect its position as diversified global mining services group.

It still currently trades on the ASX under the Ausdrill ticker of ASL.

Shares in Perenti cooled off at 2pm AEST following a strong rise earlier, to trade up 6 per cent at $1.85 each.