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Strong half helps boost Perenti earnings

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

Western Australia-based Perenti has delivered strong FY22 financial and operational results, headlined by a significant step-up in second half earnings, and continued improvement in leverage.

Underlying revenue of $2.43 billion was in-line with expectations, representing a 21 per cent increase on FY21.

Perenti managing director Mark Norwell said the results were due to the company’s strategic focus on maximising cashflow generation from its activities, effectively managing capital and driving operational performance, combined with the professionalism, dedication and resilience of its people.

“The delivery of our FY22 results comes with mixed emotions. Whilst we are very pleased with the financial results, the loss of three of our employees weighs heavily on everyone at Perenti,” he said.

“From these tragedies, we have identified and implemented some immediate actions. We also recognise we need to do more. Consequently, we have completed internal investigations and commissioned an external review of our safety framework, to help us meet our safety goal of no life-changing events for our people.
“We have continued to re-shape our business and are positioned to create a blended portfolio of complementary services through three operating divisions.

“This portfolio will be underpinned by our contract mining division, which remains our core business and is the source of our major growth projects with globally recognised and respected brands. Our portfolio also includes the divisions of mining services and idoba, which will both support our contract mining activities as well as provide strong medium and long-term growth opportunities in new and future facing services, with lower capital intensity.

“Combined with a streamlined corporate centre, Perenti is positioned to deliver a step-up in cash-backed profits in FY23, with further improvements expected to drive earnings growth through to FY25 and beyond.”

At the end of FY22, Perenti’s work in hand was $6.5b, including $1b of optional contract extensions. This includes the two-year, $140m contract extension for the IGO Nova underground mine.

During FY22, in support of its strategy of establishing digital, innovation and technology informed products and services, Perenti acquired Atomorphis and Orelogy and executed a Memorandum of Understanding with Sumitomo Corporation for the co-creation and joint development of digital mining products for the advancement of sustainable mining practices. Subsequent to the end of FY22, Sumitomo acquired a 10 per cent interest in idoba for a total cash consideration of $5.4m based on an enterprise valuation of $80m.

Perenti is a diversified global mining services group with interests in contract mining, mining support services and future technology solutions.

Founded in Kalgoorlie in 1987, it is today one of the world’s largest mining service companies providing surface and underground mining at scale.

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).
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