Perenti reports mixed first-half results

Perenti’s underlying profitability took a $16 million hit in the six months to December, as COVID-19 and the strong Australian dollar weighed on the mining services business.

Disclosing its results for the first half of the financial year, Perenti reported net profit after tax of $44.6 million against $60.1 million in the six months to December 2019.

Underlying revenue increased in that time by $6.5 million, while EBITDA fell by $21 million.

Chief financial officer Peter Bryant said he was pleased with the financial performance after having addressed legacy issues through a recent strategic review.

“With these legacy issues now very close to being finalised, management can now focus their attention on creating value for the business and shareholders by redeploying the expected capital, targeting returns that are consistent with our internal targets,” he said.

Managing director Mark Norwell said the financial and operational performance of the group in the first half was encouraging.

“Looking ahead, the resources sector continues to go from strength to strength,” he said.

“Exploration expenditure is forecast to increase during 2021 and the value of committed mining projects, in Australia alone, is the highest in a decade with many more feasibility stage projects in the pipeline.

“Perenti has a strong balance sheet, a highly experienced team with a track record of delivering excellence across our businesses.

“The significant investments we have made in our people, our business structure and our systems will ensure we continue to be well positioned to capitalise on the expected resources sector growth as we deliver against our 2025 strategy.”

Perenti has declared an interim dividend of 3.5 cents per share with shares closing at $1.25, down 18 cents on opening.