Boart takes forex hit

Global contract drilling major Boart Longyear says unfavourable exchange rates took a US$7.6 million bite out of its March-quarter revenue, which was still up 3% year-on-year at $270.1 million.

EBITDA for the period was down 5% yoy at $32.9m.

Drilling services led the way with revenue of $189.3m, up 6% yoy, at a 31.4% EBITDA margin (31.3%), with 290 of Boart’s 617 available rigs working in the first quarter of 2023.

Products revenue after inter-company eliminations came in at $79.3m ($80.9m).

Boart presented separate numbers for its fledgling Veracio technology arm for the first time, with the unit generating $1.6m revenue after inter-company eliminations and $2m in total.

“Veracio’s revenue expanded primarily from the uptake of TruScan technology and growing use of the TruTools portfolio,” Boart CEO Jeff Olsen said.

“Consolidated revenue was negatively impacted by $7.6 million of unfavourable exchange rates.”

“Revenue grew 6% in drilling services due to strong performance in Latin America, the US and EMEA.

“The macroeconomic environment continued to support long-term demand of the mining sector during Q1’23 driven by electrification and green energy.”


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