Mitchell hits new quarter high

MitchellServicesOct2021

Australian mineral drilling contractor Mitchell Services says higher fleet utilisation and pricing drove its September-quarter revenue to a record A$61.1 million, up 16% year-on-year, while EBITDA increased 24% yoy to $10.1m.

The company paid its debt down by 10.6% during the latest quarter, to $38.8m, and says it will proceed with a plan to pay an interim dividend after reporting the current half-year results early in 2023, and initiate share buybacks.

Mitchell said its average operating rig count in FY23 Q1 was 81 compared with 69.3 in FY22 Q1, with the increase largely attributable to new or expanding contracts, mainly with large miners.

“Unseasonal rainfall, ramp up impacts associated with new contract wins and COVID-19 related absenteeism temporarily restricted revenue growth and operating margins during FY22 and I am encouraged by signs that suggest that these are beginning to ease,” CEO Andrew Elf said.

 

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