Drilling company Swick Mining Services has lifted its annual profit by 17 per cent to $11.3 million but given an uncertain outlook and hinted at a possible downside risk to earnings because of lower exploration and mining activity.
The result was achieved on revenue of $146.5 million, up 8 per cent on the previous year.
The company will pay a final fully franked dividend of 0.6 cents a share, bringing its annual dividend to 1.2 cents a share up from one cent the year before.
Managing Director Kent Swick said the company was acutely aware of the pressures that existed in the market, with low commodity prices affecting margins of the operators.
"Swick has been working with its clients to ensure that the value of its service offering remains compelling and that the productivity is optimised," he said.
The company noted more explorers and miners were reluctant to commit to ongoing programs because of commodity and capital market volatility.
"The Drilling Services market particularly has seen a reduction in demand which has also fuelled increased competition between market participants," the company said.
Swick declined to provide specific market guidance until the first quarter was complete, but flagged a possible 15 per cent reduction in activity over full-year 2014.
Swick shares were off half a cent to 31 cents at 11.10am.