Ausdrill drives up profit 53pc
Ausdrill's Ron Sayers.

Ausdrill has cited its expanded service offering for driving up net profit 53 per cent to $112.2 million.

The mining services company topped $1 billion in revenue for the first time, up 27 per cent to $1.06 billion for the year ended June 30.

Managing director Ron Sayers said Ausdrill had delivered its eighth consecutive year of record profits.

"Over the past 12 months we have grown the group by winning work from existing customers, expanding into new markets and building our relationships with the major operators in the mining and energy sectors," he said.

Mr Sayers said Ausdrill now derived more of its income from the production phase of mining, insulating the company against a downturn in the sector.

"Exploration drilling now accounts for just 11 per cent of our revenues," he said. "This places us in a good position as any slowdown in the mining industry typically has a greater impact on demand for exploration services than production services."

The contractor has a revenue growth target of 15 per cent for this financial year while maintaining its operating margins.

This year, Ausdrill says, it will focus its operations on working for the major mining houses, including services to the gold industry, which has historically provided more than 60 per cent of its revenue.

Analysts viewed its $165 million equipment acquisition this week of the Best Tractor Parts Group as being linked to a high gold price and a vote of confidence in the mining boom.

"Based on current trading conditions, and excluding the effects of the Best Tractor Parts acquisition, the board is confident that continued growth can be achieved in 2012/13 with a targeted growth rate of 15 per cent in revenues whilst maintaining similar operating margins,â€

The West Australian

Popular videos

Our Picks

Follow Us

More from The West