Perth-based mineral drilling firm Swick Mining Services has announced a record unaudited half-year revenue of $75.6 million as it prepares to expand further into North America.
Revenue for the six months ending December 31 was up 9 per cent from the same period last year, while earnings before interest, tax, depreciation and amortisation (EBITDA) were up 14 per cent to $15.8 million. Full audited results will be posted next month. The result puts Swick in line with its full year guidance of $145-$155 million revenue and $30.5-$34.5 million EBITDA.
Swick paid its shareholders a maiden dividend last year on the back of a 27 per cent spike in first half revenue but the board is yet to decide if it will deliver an interim dividend in this instance.
Swick's fleet utilisation has remained steady over the past three years, with a total of 56 rigs from a fleet of 76 operating in the field as of December 31.
In addition to renewing contracts in New South Wales and Tasmania, Swick has announced underground diamond drilling tender awards in Canada and the United States in recent months and is in the final stage of negotiations in regards to several other contracts.
"It has been a terrific half for Swick in terms of posting a solid financial result in a difficult market for mineral drilling contractors," managing director Kent Swick said.
"Our strategy to de-risk the business from significant exposure to the exploration sector, targeting brownfield operations with a niche service provision has proven to be the correct course of action for our shareholders."
The strong results for Swick are in contrast to the trials endured by other drilling firms in recent times. Boart Longyear saw its shares plunge 30 per cent in August after it downgraded its full year earnings guidance, citing weak demand as a result of global uncertainty. Boart’s chief executive Craig Kipp was sacked two months later.
Shares in Swick were up 6 per cent to 34 cents at 12:00pm WST.