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Perenti sees financial year success

Perenti has delivered strong FY22 financial and operational results, headlined by a significant step-up in second half earnings.

Perenti reports strong financial year (FY23) results, which the company says it will use to expand its approach to safety and sustainability in the mining industry.

Off the back of strong FY23 results, Perenti has updated its capital management policy, now allocating between 10 per cent and 20 per cent of free cash towards safety and sustainability innovation.

In particular, the company will invest in technology and engineering solutions to more effectively manage the risks of underground mining; the development of new services to support decarbonisation; and the expansion of idoba – the company’s technology-driven mining services business.

“An important component of our 2025 strategy update last year was the introduction of our focus to embedding sustainability in everything we do,” Perenti chief executive officer Mark Norwell said.

“Today, we are taking this commitment a step further by outlining our sustainability imperatives and priorities.

“These will guide the work we do, underpin the future value that we expect to generate and shape the company we become.”

Perenti reported a better than expected business outlook for FY23.

In February, the company forecasted FY23 revenue of $2.8 billion to $2.9 billion, with earnings before interest, taxes, and amortization (EBITA) between $250 to $265 million. Perenti also predicted leverage (debt) to be roughly one per cent, with capital expenditure for the year of approximately $290 million.

Perenti now expects FY23 revenue of $2.9 billion, EBITA of between $260 million and $265 million, with leverage and capital expenditure unchanged.

Perenti’s FY24 guidance will be released in August this year, but the company has indicated that it will be a growth on FY23 targets.

Perenti has also raised its greater FY25 revenue target to $3 billion, up from $2.5 billion.

“With the end of FY23 only weeks away, we expect the positive momentum built up in FY23 to continue,” Norwell said.

“(We) are targeting for FY24 to be a third consecutive year of earnings growth, margin expansion and a strengthening balance sheet.”

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