Perenti revenue exceeds $2bn

Mining contractor Perenti has reported record revenue of $2 billion and solid profit for the full year, with the news sending its shares up by as much as 15 per cent.

The Perth-based group said its revenue had risen by 3.8 per cent in the 12 months to June 30, while its net profit after tax (NPAT) met the top end of guidance, recording $110.3 million.

It comes about two months after Perenti lowered its NPAT forecast for FY20 to $106-110 million.

Managing director Mark Norwell said Perenti’s FY20 results reflected the business’ ability to navigate a turbulent year, noting operational and economic challenges presented by COVID-19.

“Of note, we converted close to 100 per cent of earnings into cash, remained focused on capital discipline and made considerable progress in transforming our surface business in Africa, AMS, with stronger financial performance in the second half of FY20,” he said.

“Importantly, we continued to look into the future by investing in the business and our people that will enable us to deliver on our 2025 Group strategy.”

Mr Norwell said Perenti had made significant progress under its 2025 Group strategy, with cash and liquidity management a key focus.

He also said the group ended the year in a stronger financial position than in FY19.

Perenti had liquidity of around $600 million in cash and undrawn credit facilities at June 30, along with work in hand of $5.4 billion. 

That includes around $1 billion in new work and contract extensions awarded to the company in FY20, across both its surface and underground mining divisions.

"Our strong order book provides a solid base for FY21, which is enhanced by increased tender activity globally with a pipeline of $8.8 billion in targeted pipeline opportunities," Mr Norwell said.

Perenti said $1.7 billion of its current order book is secured revenue for FY21.

The group declared a fully franked, final dividend of 3.5 cents per share, to be paid on November 3. It brings the full year payout to 7 cents.

Perenti shares closed up 4.6 per cent to trade at $1.25 each.