Swick posts losses

Swick has joined the list of depressed drillers, posting a FY 2014 first-half loss of $423,000.

The Perth-based drilling contractor blamed the loss on cost cutting by clients and tougher competition.

Revenue in the first half has slumped 25 per cent, down to $57 million.

Swick will pay a fully franked interim dividend of 0.2 cents per share.

In a report by the West Australian, Swick said the drop in revenue was affected by low demand from its client base, engaged in budget reduction and cost saving measures, requiring Swick to renegotiate contracts at reduced pricing levels.

“In addition, the competitive market required Swick to renew and negotiate contracts at reduced pricing levels,” the company said.

However, Swick predicted better performance in the second half, citing a strong order book and record number of contracts and operating sites.

“This provides a solid foundation for a strong rebound in revenue when client budgets return to normal levels,” the company said.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.