Boart narrows loss

DRILLING major Boart Longyear has posted a $US333 million ($A424.6 million) net loss after tax but says it has entered the year in a stronger position with less uncertainty.
Boart narrows loss Boart narrows loss Boart narrows loss Boart narrows loss Boart narrows loss

Boart Longyear's drill rig has a design hole length of 1500m.

Kristie Batten

The result compared to a $620 million loss in 2013. Adjusted NPAT was $142 million.

The company recognised restructuring and recapitalisation costs, and asset impairments of $114 million.

Revenue was down from $1.2 billion to $867 million.

Statutory earnings before interest, tax, depreciation and amortisation improved to negative $83 million from negative $337 million, while adjusted EBITDA dropped to $31 million from $107 million.

“Despite the challenges we faced in 2014 from continued reductions in the demand for our services and production, we enter 2015 in a stronger and healthier position than when we communicated with shareholders at this time last year,” Boart president and CEO Richard O’Brien said.

“As a result of our recently completed recapitalisation, we no longer face the material uncertainty we faced one year ago related to our potential inability to refinance our debt.”

Net debt increased by $21 million to $548 million and $225 million of debt was refinanced to improve flexibility and liquidity.

“We are much better positioned as a result of substantial and sustainable cost reductions to

provide increased earnings and cashflow when our markets recover,” O’Brien said.

Boart has reduced costs by $1.1 billion over 2013-14.

“Significant cost-cutting actions completed over the past two years should provide strong margin expansion when our markets improve,” O’Brien said.

Boart will celebrate its 125th anniversary this year.

“As we have been throughout our history, we continue to be driven by the desire to find more ways to help our customers efficiently discover and delineate new reserves and produce existing reserves

while continuously increasing our productivity and improving our safety performance,” O’Brien said.

“We have worked hard to navigate through the difficult market environment of recent years. We are energised by a renewed vigour and discipline that we believe positions us to grow far into the future.

“As we celebrate the many accomplishments of our past, we are moving confidently toward the

future.”

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