Perenti updates FY20 forecast

Mining contractor Perenti has released a lower full-year earnings guidance, sending its shares down 10 per cent at the ASX open, despite bringing back a $15 million interim payout.

Perenti said it expected full-year net profit after tax to be in the range of $106 million and $110 million, compared with its last guidance of $115-120 million, which the company withdrew in March.

Perenti had also deferred its $15 million interim payout, due to be paid in April, to October 20.

The contractor today said greater clarity around operational performance during FY20 had allowed the company to bring forward its 3.5 cents per share dividend to July 23.

Managing director Mark Norwell said Perenti was resilient during the coronavirus outbreak, with work in hand for underground and surface operations remaining “robust”.

“Our order book remains strong and there are significant opportunities in our tender pipeline which we expect to commence at the back end of FY21 and into the start of FY22,” Mr Norwell said.

“In addition, we have further enhanced our already strong liquidity position, ensuring Perenti is well placed to withstand the ongoing economic challenges COVID-19 may present and provide the company with greater flexibility to fund growth opportunities.”

Perenti said it had around $530 million in cash and undrawn revolving credit facilities, along with access to equipment finance facilities.

The company, which was considering selling its BTP business, also said today it had not received an acceptable binding offer, with the sale now formally concluded.

Perenti said it was now focussed on growing the BTP business.

Shares in the company closed down 5 per cent to trade at $1.28.