Swick posts positive FY13

SWICK Mining Services has declared a record full-year revenue for fiscal 2013, despite further softening in its Asia-Pacific business.
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Justin Niessner

Revenue for the 12 months was up 7% on a year ago at $A146.5 million, helping push net profit after tax up 17% to $11.3 million.

Earnings before interest, tax, depreciation and amortisation came to $30.8 million, up 8% from fiscal 2012.

Net debt for the year was down 78% to $1.6 million.

The drilling services provider said that despite its Asia-Pacific clients having curtailed exploration programs over the period, the full-year result underlined the relative strength of the Swick business model within the global mineral drilling marketplace.

“Swick is very aware of the pressures that exist in the market, with low commodity prices affecting margins of the operators,” managing director Kent Swick said.

“Swick has been working with its clients to ensure that the value of its service offering remains compelling and that the productivity is optimised.

“To be honest, these times allow the industry players on both sides of the supply and demand chain to work closely to be more efficient and productive, and hopefully, this can remain the same when prices and margins improve.”

The company noted that a total of 54 rigs from a fleet of 78 were operating in the field as of the end of financial year, compared to 58 rigs in operation from a fleet of 72 a year ago.

It also reported the completion of the build of an additional three underground diamond drill rigs, which were expected to be commissioned into work during the first quarter of 2014.

Swick declined to provide specific market guidance until after the first quarter, citing market volatility and uncertainty.

Shares in the company were down 1.6% today at 31c.