The loss was 6.7% worse than the $142.8 million net loss recorded in the previous corresponding period, and was generated 8.1% lower revenues compared with the $421.5 million recorded in the first half of 2014 at $387.5 million.
Boart attributed the reduced revenues to the strengthening of the US dollar, which accounted for $29 million of the drop, along with lower prices offered in the drilling services area of the business as the outlook remained weak for many.
The company’s operating loss was $84 million, up 2.3% from the $86 million recorded in the previous corresponding period.
Boart reported an earnings before interest, tax, depreciation and amortisation loss of $39 million for the half from $33 million in the corresponding period last year.
On adjusted terms, Boart’s operating loss from trading activities was $28 million, compared with $27 million in the first half of 2014, while the adjusted EBITDA loss was $1.7 million compared to $18.7 million.
Significant items, including charges relating to recapitalisation, impairments, restructuring and employee related costs, fell by $11 million compared with the first half of 2014 to $41 million.
A total of $31 million worth of non-cash impairments was recorded for the half compared with $43 million the previous corresponding half-year.
O’Brien said the impact of cost saving initiatives implemented by the company could be seen in the results.
“We are starting to see some stabilisation in activity levels and are realising the benefits of our aggressive cost actions and strategies to streamline and improve productivity in our core operations,” he said.
“The impact of these improvements can be seen in a loss from trading activities for the period that was relatively flat to the same period in 2014 despite a revenue decrease of $34 million for the period.”
Individually, Boart’s drilling services segment EBITDA fell 39.6% to $22.1 million, while the products segment improved 22.4% to an EBITDA of $7.1 million.
Boart did not provide an outlook for full-year revenue or EBITDA, but it expected the current half figures to be consistent with those recorded in the first half of 2015.
O’Brien said the company anticipated a turnaround in the market at some point, but couldn’t say when that would be.
“In the medium term, we expect that mining companies and junior explorers will have to increase their exploration spending to replace and add to reserves,” O’Brien said.
“Several major mining companies have not replaced reserves over the last few years, so we remain confident that a sustained, multi-year recovery in demand for our drilling services and products will occur.
“We only wish we were as confident in our ability to say exactly when that will occur.”
O’Brien is yet to announce a departure date from Boart, and will stay on to provide day-to-day leadership until a final date is agreed.
Boart chairman Marcus Randolph will expand his role in the company to executive chairman on a temporary basis while the search for a successor is undertaken.
