DDH1 reports proforma NPAT of $35.2m, up 17% on IPO prospectus forecast
Specialist Australian drilling services company DDH1 Limited (ASX: DDH) (DDH1 or the Company) is pleased to report its results for the year ended 30 June 2021 (FY21).
Strong organic growth across DDH1 Drilling, Ranger Drilling and Strike Drilling resulting in revenue of $294.6 million, the highest in DDH1’s history. This reflects a 17.9% increase on FY21 and a 5.1% outperformance to Prospectus forecasts.
A further 10 rigs were added to the fleet to end the financial year with 98 rigs and a further 8 rigs secured to be delivered in FY22, which will enable DDH1 to meet customer demand.
Drilled 2,187,355 meters for 94 clients, a record performance, with rig utilisation of 77% an increase from 73% in FY20.
Pro-Forma EBITDA of $74.6 million, a 15.6% increase on FY20 and 7.6% higher than Prospectus forecast. This performance was underpinned by increased demand and notwithstanding the logistical obstacles and increased costs resulting from operating in a COVID-19 environment.
Pro-Forma EBITA of $53.1 million a 17.9% increase on FY20, and 14.9% higher than Prospectus forecast.
Statutory EBITDA of $65.6 million and Statutory EBIT of $41.9 million, inclusive of IPO costs.
Pro-Forma NPAT of $35.2 million a 17.2% increase on the Prospectus forecast.
Strong cash generation, with cash from operating activities excluding tax and interest of $68.8 million a 8.2% increase on Prospectus forecast.
Robust balance sheet with Net Cash of $9.6 million and $54.4 million in undrawn facilities.
Total Reportable Injury Frequency Rate (TRIFR) of 9.0.
Fully franked dividend of 2.18¢ per share declared, which is 40% of Pro-Forma NPATA since listing.
Our operating result in this COVID-19 environment is a testament to the tenacity and resilience of our people.
Commenting on the FY21 financial results, DDH1 Managing Director & CEO Sy van Dyk said:
“This is a milestone moment in DDH1’s history and the culmination of the outstanding efforts of all of our people. We listed on the ASX with a vision to enhance DDH1’s status as Australia’s premier drilling company and these maiden results as a listed company are just reward for all our shareholders.
“Importantly, DDH1 was able to keep our people safe from COVID-19 whilst at the same time continuing to focus on our safety performance. Our operational people endured significant disruptions due to border closures and quarantine requirements. Many have also sacrificed by staying within the state they work, away from their normal residence for extended periods. They are to be commended for their dedication and loyalty. I am extremely thankful and proud of all our people.
“The market conditions for drilling services to the Australian minerals industry continue to be strong and offer significant growth opportunities for DDH1, notwithstanding emerging cost pressures in our sector because of labour shortages and supply chain constraints exacerbated by COVID-19.
“DDH1 has begun the new financial year with positive momentum and a sense of optimism, underpinned by strong commodity prices, capital markets that are supportive of our customers and significant exploration success across the industry that we service.”