Join our daily newsletter At The Bell to receive exclusive market insights
- Mining service group Perenti Global (PRN) has reported expected FY21 results
- The company recorded a group revenue of just over $2.02 billion, a little less on last year’s result of $2.04 billion
- Perenti had a challenging year due to COVID-19 impacts, however its second half bounced back
- If the COVID-19 impacts do not worsen, Perenti expects FY22 revenue of between $2 billion to $2.2 billion
- Perenti is trading in the grey at 85.5 cents per share at 10:09 am AEST
Perenti Global’s (PRN) FY21 results show the company’s performance is in line with expectations for the period.
The mining service group recorded a group revenue of just over $2.02 billion, a little less than last year’s result of $2.04 billion.
The company had a challenging first half of the year, but recovered in the second half. This was shown in its statutory net profit after tax which improved by $75.3 million in the second half.
The first half saw a statutory loss of $63.8 million, however that changed to a statutory gain in the second half of $11.5 million.
Notably, Perenti managed to lower its debt by 10 per cent to $503.3 million.
Over the year the company faced COVID-19 impacts on its international operations, a tighter Australian labour market and a strengthening Australian dollar.
Since the end of June 2020, Perenti has received $2.8 billion of new work and contract extensions, including two key growth contracts in North America and Botswana.
CEO and Managing Director Mark Norwell said the standout performer was its underground business. It had a third consecutive year of earnings growth with a strong FY21 contribution.
“Impressively, this growth has been delivered in a year where we saw the slower than anticipated ramp up at several recently secured international projects due to the prolonged, and ever-changing, nature of the COVID-19 pandemic,” he said.
“As expected, due to the planned contraction of our surface mining business following our strategic transition out of Yanfolila and Boungou, FY21 revenue, EBIT(A) and margins were softer than FY20. Pleasingly during the second half of FY21, earnings and margins generated by the surface business more than doubled compared to the first half.”
At the end of the period, Perenti has three years’ work in hand of $6.6 billion and a strong tender pipeline of $11.0 billion.
If COVID-19 impacts do not worsen, Perenti expects FY22 revenue of between $2 billion to $2.2 billion and earnings before interest and tax of $165 million to $185 million at an AUD:USD exchange rate of 0.75.
Perenti was trading in the grey at 85.5 cents per share at 10:09 am AEST.
