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Specialised drilling services group Master Drilling Group said on Tuesday its years of capital investment have helped it once again book record revenue in its half-year to end-June, with revenue in dollar terms climbing by double digits.
Revenue rose 12.1% to about $108 million (about R2 billion) and profit 8% to $14.6 million, with the group saying it benefitted from a "more stable fixed-cost component" after significant capital investments over the past decade. In rand terms, headline earnings per share climbed by a quarter.
Valued at about R1.9 billion on the JSE, Master Drilling was established in 1986 and listed in 2012. It provides drilling technologies and mining solutions globally, having built relationships with blue-chip and mid-tier clients in the mining, hydroelectric energy, civil, engineering, as well as construction sectors worldwide. It generates about 46% of its revenue in Africa and 29% in South America, and more than 90% is mining-related.
The group said on Tuesday its committed order book had climbed to $276.3 million at the end of from $265.4 million at the end of December.
"Master Drilling is grateful to announce that we had an excellent start to the year for 2023 on the back of a solid 2022," CEO Danie Pretorius said in the results.
"While the lingering impact of the uncertain global conditions across our value chain remains unclear, we continue to drive diversification across regions, commodities, currencies and industries with an eye on the long term without compromising the management of short-term risks and headwinds associated with these global uncertainties," he said.
