Boart Longyear chairman Graham Bradley has announced he will step down later this year as shareholders today voted against the drilling services company's remuneration report.
Boart Longyear chairman Graham Bradley has announced he will step down later this year as shareholders today voted against the drilling services company's remuneration report.
Mr Bradley told the company's annual general meeting in Sydney today that he would retire from the post and board of directors after the company's first half profit announcement in late August.
Boart director David McLemore, who has been a director of the company since early 2007, will take up the chairman post
"With the refinancing program behind us, with a strong balance sheet, and with the company now back on the path to profitable growth, it is time for a new chairman to lead the company to the next stage of its development," Mr Bradley said.
Meantime, shareholders today voted down Boart's remuneration report, in a move the company described as disappointing.
The resolution was defeated by 384 million votes.
Boart's move to reward its directors came after a year the company reported a near $15 million annual loss and paid no dividends.
In a statement today, Boart said some shareholders were concerned about a small number of remuneration decisions by the board including some one-off decisions during the global financial crisis.
Boart defended those decisions, saying the management teams' operation response was highly effective, enabling the company to remain both cash and earnings positive during the GFC.
"Accordingly, in the view of the Board, the remuneration decisions were appropriate and fully merited," Boart said.
The company added that it will speak with shareholders regarding their remuneration concerns.
Mr Bradley also told the meeting today that there had been a continued improvement in demand for Boart's drilling services and products.
Chief executive Craig Kipp reconfirmed the company's guidance at the AGM, saying that mid-year rig utilisation was expected to be above 70 per cent and in the high 70s by the end of the year.
The company earlier this month upgraded its forecast earnings and revenues for the calendar year, after increased mining activity in the first quarter of 2010.
Boart expects earnings before interest, tax, depreciation and amortisation (EBITDA) to rise by 76 per cent above 2009's result, to $US195 million ($A215.92 million).
It had previously forecast EBITDA of $US170 million ($A188.24 million).
Revenue for the year is expected to be 33 per cent higher than in 2009, at $US1.3 billion ($A1.44 billion), up from the previous guidance of $US1.125 billion ($A1.25 billion).
In 2009, Boart delivered a 93.2 per cent increase in annual net profit to $US156.7 million.
Mr Kipp also said the company had hired over 2,000 full time employees since its lowest quarter in 2009.
Boart Longyear shares were the second most heavily traded on Tuesday, with 77.5 million securities turning over.
The stock closed up 0.5 cents at 34 cents today.
