Positive results for Perenti after name change

Ausdrill Ltd, which recently re-branded itself as Perenti Global, has delivered strong financial results; outperforming earnings guidance for the third consecutive year while successfully completing the acquisition of underground mining contractor Barminco.

 Following a name change to Perenti and the acquisition of Barminco, Ausdrill has posted positive results for FY19

Following a name change to Perenti and the acquisition of Barminco, Ausdrill has posted positive results for FY19

Perenti MD and CEO Mark Norwell said the FY19 results demonstrated the scale of the group's transformation during the year. "This strong result demonstrates our ability to continue to deliver for our clients in the year while ensuring we successfully integrated 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."

Norwell continued stating: "We have used this transformational year to build on our proud heritage by establishing a new operating model and implementing the 2025 Group strategy, with our aspiration to become the indispensable mining services company.

"Our recent group rebrand to Perenti gives us a strong and identifiable brand in the market and a platform to grow our business in the future while the evolution of our tagline to ‘Expect More' supports our aspiration and purpose, underling our commitment to deliver for all our stakeholders.

"With a strong balance sheet and an order book that has grown to $7 billion after securing $3.4 billion in new and extended contracts since 1 July 2018, Perenti is well-positioned for growth in FY20."

By entering FY20 with such a strong order book, Perenti has underpinned its targeted FY20 NPAT(A) of around $140 million on the assumption that the positive market and global and regional conditions remain favourable. The company also expects an increase in capital expenditure to around $295 million in FY20 to support the delivery of recently awarded contracts and growth across the business.

Norwell said the company was also targeting a pipeline of $8.5 billion of potential work across more than 40 projects that could be awarded over the next 24 months. "There is a strong pipeline of work we are targeting, with a good mix across geographies and commodities at both surface and underground projects for new and existing clients."

He continued: "We believe there is scope for continued growth in our underground mining operations given the opportunities available, while the focus for our surface mining business is on enhanced earnings from existing projects.

"Meanwhile, our investments business is expected to benefit from growing demand for equipment rental, parts, and services on the back of the mining reinvestment cycle.

"At a group level, delivery on our strategy will be supported by further strengthening our balance sheet, ensuring we deliver on our targets, and making further investments in our people and systems to support growth.

"In addition, we continue to investigate regional expansion options and further integrating technology into everything we do," Norwell concluded.