Kestrel, BMA contracts deliver for Delta SBD

NEW contract work at the BHP Billiton Mitsubishi Alliance's Broadmeadow mine and Rio Tinto’s Kestrel mine extension in Queensland have helped boost underground contract miner Delta SBD’s revenue 33% and underlying net profit 50% for the half year.
Kestrel, BMA contracts deliver for Delta SBD Kestrel, BMA contracts deliver for Delta SBD Kestrel, BMA contracts deliver for Delta SBD Kestrel, BMA contracts deliver for Delta SBD Kestrel, BMA contracts deliver for Delta SBD

Delta SBD chief executive Steve Bizzaca

Lou Caruana

The company, which is based in New South Wales and listed on the ASX in 2010, reported revenues of $73.8 million and underlying net profit of $5.2 million for the six months to December.

Delta SBD’s chief executive officer Steve Bizzaca said: “These results included further improvement in our safety performance and excellent growth in net profit after tax, driven by higher revenue and improved margins, despite the general weakness reported across the coal sector.

“Revenue and margin improvements were both beneficiaries of the growth strategy implemented within the group over the past two years, based on targeted capital expenditure to acquire a significant fleet of ‘fit for purpose’ equipment.”

Capital acquisitions made over the past 18 months exceeded $30 million.

“Revenue and margin improvements were both beneficiaries of the growth strategy implemented within the group over the past two years, based on targeted capital expenditure to acquire a significant fleet of ‘fit for purpose’ equipment,” Bizzaca said.

“The expanded fleet is enabling the group to win new project work and better service our customer base. I am also pleased to report that during the period we won major new work at BMA Broadmeadow and Rio Tinto Kestrel.”

Other high profile projects the company currently has contracts with include development work at Whitehaven Coal’s Narrabri mine in NSW and longwall moves at Xstrata’s Ravensworth and Ulan mines.

The lost-time injury frequency rate for the company improved 14%, with the total recordable frequency rate remaining constant at 16.6.

“The pleasing aspect of these results is that they were achieved during a period of significant growth in workforce numbers and operating hours within the group,” Bizzaca said.

“We believe that this performance reflects the commitment of our entire workforce and the effectiveness of the group safety management process.

“This belief is supported by the fact that our Leading Zero Harm initiative index rose by 31%.”

Looking ahead, the company’s expectations for the January-June period are set against a framework of general weakness in the coal industry in Australia.

“Notwithstanding, the company forecasts a solid half year with revenue similar to the corresponding period last year,” it said.

“Margins may be pressured downwards compared to the margin achieved in the first half of the financial year.”

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