Perenti anticipates bumper 2020 as order book strengthens

Perenti Global, formally known as Ausdrill, has delivered a “transformative year” as it lays the foundations for further growth in the 2020 financial year.

The diversified mining services company posted strong financial returns during a period in which it acquired underground mining contractor Barminco and finalised a complete rebranding.

Perenti has also implemented a 2025 group growth strategy focussed on three key service offerings in surface mining, underground mining and investments.

It caps off a financial year that saw Perenti report a net profit after tax of $103.1 million, up on its guidance of $98 million and a 14.2 per cent boost in revenue to $1.97 billion.

Perenti chief executive officer Mark Norwell said the results demonstrated the scale of the group’s transformation during the year.

“We have evolved from an Australian drilling business into a global mining services company, with a workforce of more than 8000 people working at more than 50 projects across four continents,” Norwell said.

“We have used this transformational year to build on our proud heritage by establishing a new operating model and implementing the 2025 group strategy, with our aspiration to become the indispensable mining services company.”

The company is optimistic about the future with an order book of $7 billion, including $3.4 billion in new and extended contracts secured since July 1 2018.

Norwell revealed Perenti was also targeting a pipeline of $8.5 billion of potential work across more than 40 projects, which could be awarded over the next 24 months.

“There is a strong pipeline of work we are targeting, with a good mix across geographies and commodities at both surface and underground projects for new and existing clients,” Norwell said.

“We believe there is scope for continued growth in our underground mining operations given the opportunities available, while the focus for our surface mining business is on enhanced earnings from existing projects.”

The company stated its investments business was expecting to benefit from growing demand for equipment rental, parts, and services on the back of the mining reinvestment cycle.

“At a group level, delivery on our strategy will be supported by further strengthening our balance sheet, ensuring we deliver on our targets, and making further investments in our people and systems to support growth,” Norwell said.

“In addition, we continue to investigate regional expansion options and further integrating technology into everything we do.”

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