Record profit for Boart

DRILLING giant Boart Longyear has posted the highest full-year revenue and profit in its 120-year history, beating its guidance.
Record profit for Boart Record profit for Boart Record profit for Boart Record profit for Boart Record profit for Boart

 

Kristie Batten

Revenue for 2011 jumped 37% to $US2.02 billion ($A1.89 billion), while earnings before interest, tax, depreciation and amortisation soared 60% to $356 million.

It came after Boart flagged in December that it might beat its 2011 guidance of $1.9 billion revenue and $330 million EBITDA.

Net profit after tax jumped 89% to $160 million, while cash from operations skyrocketed by 282% to $198 million.

Boart said demand remained strong, particularly in the emerging markets of Africa and Latin America, while sales of drilling equipment doubled.

Rig utilisation for drilling services averaged 75%.

The company’s workforce increased 15% last year to 10,572 employees globally.

Boart chief executive officer Craig Kipp said the company was delivering productivity metrics which exceeded its previous 2008 benchmarks.

“This is a direct result of ongoing organic investment in the business, consistent with the roadmap developed in 2009, post the global financial crisis,” he said.

Australia is one place the company is looking to expand.

Last year, Boart completed a two-year, 40-country implementation of a new Oracle software platform and launched 10 new products, including the award-winning UMX diamond bit.

Looking ahead, the company expects full-year revenue to reach a record $2.3 billion this year, while EBITDA is tipped to be $460 million.

Capital expenditures will increase by $79 million to $300 million and will be financed by internal cashflow.

Boart is listed in Australia but is headquartered in Salt Lake City, Utah.

This story first appeared on ILN's sister publication MiningNews.net.

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