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- Drilling specialist DDH1 (DDH) delivers a record FY22 performance with unaudited statutory revenue up 41 per cent from the prior corresponding period to $415.5 million
- Underlying EBITDA was up 30.3 per cent to $97.2 million while operating EBITDA was up 27.2 per cent to $94.9 million
- Shifts increased 10.2 per cent to 91,228, annual revenue per shift was up 3.4 per cent to $5556 and an additional 15 rigs were added to DDH1’s portfolio
- In mid-February, DDH1 completed the acquisition of diamond drilling provider, Swick (Drilling Division) – introducing it to the North American and Western Europe markets
- DDH1 is up 17.5 per cent on the market with shares trading at 74 cents at 12:16 pm AEST
Drilling company DDH1 (DDH) has delivered a record FY22 performance with unaudited statutory revenue up 41 per cent from the prior corresponding period to $415.5 million.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were up 30.3 per cent to $97.2 million while operating EBITDA was up 27.2 per cent to $94.9 million.
The majority of DDH1’s revenue came from production and resource definition drilling programs with 87 per cent generated from these activities.
Further, shifts increased 10.2 per cent to 91,228, annual revenue per shift was up 3.4 per cent to $5556 and an additional 15 rigs were added to DDH1’s portfolio with the company ending the period with 183 rigs and a further 11 on order or under build.
FY22 rig utilisation was up 77.4 per cent, however, it was impacted due to labour movement restrictions and COVID-related absentees.
DDH1 also encountered inflation pressures on wages, repairs, maintenance and consumables.
In mid-February, DDH1 completed the acquisition of international underground diamond drilling provider, Swick (Drilling Division).
This acquisition complements and extends DDH1’s services as well as introduces the company to the highly prospective international markets in North America and Western Europe.
For FY23, DDH1 will focus on increasing margins, generating cash flow and integrating Swick into its business.
DDH1 will release its audited full-year results on August 30.
“We achieved record results notwithstanding increases in underlying costs, particularly related to managing headcount in light of COVID requirements,” CEO and Managing Director Sy Van Dyk commented.
“Pleasingly we are successfully managing to meaningfully increase rates as contract renewals roll over, although the timing difference between immediate cost increases and our strategy of rate increases at renewal or with new tenders has temporarily reduced operating margin.
“The successful and transformative acquisition of Swick was a highlight. Importantly, Swick’s underground capabilities complement our service offering and provide opportunities for expansion into the North American and Western European markets for our surface drilling operations.”
DDH1 was up 7.5 per cent on the market with shares trading at 74 cents at 12:16 pm AEST.
