Perenti and GR Engineering Services have reported an increase in revenue for the first half of the 2024–25 financial year (H1 FY25), among other operational highlights.
Perenti
Perenti has delivered $1.7 billion in revenue for the six months ending December 31 2024.
The result is a half-year record for the mining services company, as well as a six per cent increase from the prior corresponding period.
Perenti delivered $155 million in underlying earnings before interest, taxes, and amortisation, also known as EBIT(A), and $82 million in underlying net profit after tax (NPAT), a three and four per cent increase from H1 FY24 respectively.
The strong financial performance has positioned Perenti to meet its FY25 guidance, which includes $3.4–$3.6 billion in revenue and $325–$345 million in EBIT(A).
“At Perenti, we continue to demonstrate the strength and resilience of our business model to generate consistent cash-backed returns through fluctuations in commodity and market cycles,” Perenti managing director and chief executive officer Mark Norwell said.
“This resilience comes from establishing a global and diversified portfolio of mining services and our scale, particularly in underground mining and drilling. The strong free cash flow generated by contract mining and drilling services has allowed the reduction of gross debt during the period, ongoing share buybacks and the declaration of an increased interim dividend (of 30 cents per share).”
After acquiring DDH1 in October 2023, Perenti combined the company with its existing Ausdrill business to create its drilling services division.
According to Norwell, Perenti’s drilling services has since grown to become the second-largest global drilling group when measured by total metres drilled.
“The division is operating well and is positioned to capitalise on increasing exploration activity expected in the coming months,” Norwell said.
“Our performance is due to our people, and I am immensely proud of our dedicated teams worldwide who consistently deliver exceptional services to our clients.”
Perenti introduced a range of safety initiatives across its businesses during H1 FY25, including further fatigue monitoring systems implementation in vehicles, trialling an automated rod handler truck with drilling services, and conducting real-time atmospheric monitoring of gases underground at the Sunrise Dam gold mine in the Goldfields region of Western Australia.
“We prioritise and value the safe and sustainable delivery of our services because we want our people to return safely at the end of every shift,” Norwell said.
“On behalf of the board and group executive, I sincerely thank them for their ongoing contributions.”
GR Engineering
GR Engineering recorded a 45.2 per cent revenue increase for H1 FY25, delivering $272.1 million for the six-month period.
The contracting specialist upped its earnings before interest, depreciation, and amortisation (EBITDA) by 52.6 per cent, delivering $34.5 million for H1 FY25.
GR Engineering’s profit before tax and NPAT also increased by over 50 per cent compared to the prior corresponding period.
“The (H1 FY25) period was characterised by solid operational performance across the group,” GR Engineering managing director Tony Patrizi said.
“Engineering, design and construction works are continuing on key projects … Subsequent to December 31 2024, GR Engineering was awarded the King of the Hills operations stage one upgrade project. GR Engineering is currently involved in ongoing early contractor work and a high volume of studies across a broad range of commodities and geographies.”
GR Engineering closed the half-year with $111.8 million in cash and $73 million in total equity, driven by $56.1 million in net cashflows from operating activities.
Building off its solid balance sheet position and strong cash generation, the GR Engineering board has decided to increase its interim fully franked dividend to 10 cents.
“The group’s contracted and near-term pipeline across the business is solid and is continuing to grow … the higher cash generation, nil borrowings, low capital intensity and excellent project delivery all contributed to the maintenance of a robust and stable balance sheet,” Patrizi said.
“I would like to take this opportunity to thank all our employees, clients, sub-contractors and suppliers for their efforts, support and focus on safety and schedule across the group.”
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