Dynamic has delivered total FY 2022 revenue of AUS$74.1 million (US$51 million), a 218 per cent increase from the previous corresponding period leading to EBITDA of AUS$17.1 million, up 240 per cent and NPAT (normalised) of AUS$9.2 million, up 381 per cent.
Commenting on the performance and improved earnings and growth, Dynamic Group Holdings non-executive chairman Garret Dixon said: "This is an outstanding result. Our first two years as a listed company have seen us deliver year-on-year growth in revenue and earnings. Our strategic acquisition of exploration drilling company Orlando Drilling has contributed to our growth and it is important to note we have not included any contribution from the acquisition of the water drilling business Welldrill, which closed after the end of the financial year.
"On that basis the outlook for the business is very strong. We have a solid balance sheet with good levels of cash and a young fleet of equipment. The markets we are operating in have experienced strong growth, and we see ongoing solid demand for all commodities. We now have an integrated offering across water drilling, exploration drilling and production drilling so we are well placed to leverage the buoyant market conditions."
The company now has a fleet of 47 drill rigs with 300 plus personnel servicing 17 active projects across a broad mix of commodities.
The drill and blast division continued to deliver a high standard of work over the past 12 months and completed key milestones on multiple projects. An additional four drill rigs were purchased to meet ongoing demand and there was also an investment in some ancillary equipment to reduce rental requirements. Equipment utilisation has remained strong and project execution continues to be of a high standard.
Multiple short-term projects were undertaken, while long-term projects are continuing, servicing the company's core group of tier one clients operating in the gold and lithium sector. Scope increases at several projects have enhanced contracts.
The exploration drilling division (Orlando Drilling Pty Ltd) continued to experience strong demand across long and short-term projects. An additional rig and equipment was purchased to maintain the ability to service key focus areas across a diverse mix of commodities including gold, lithium, nickel and copper. Orlando is making a concerted push to seek additional brownfields opportunities, which will provide more defensive earnings for the business with a high level of tendering activity.
The acquisition of water drilling business Welldrill was completed in July 2022 and is expected to generate ~AUS$26-28 million revenue and ~AUS$7-8 million EBITDA in FY23.
Welldrill has a tier-one client base including BHP, the WA Government, the Department of Water and Environmental Regulation, Liontown and OZ Minerals and provides a defensive revenue stream, with increased exposure to government contracts and production mining. The business adds a complementary service offering, technology systems, customer base and management expertise to Dynamic.
Growth through acquisition remains a key part of Dynamic Group's growth strategy and targeted acquisition opportunities will continue to be progressed.
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