Mitchell posts strong Q3 result


Mitchell Services has reaffirmed its guidance for “materially greater” revenue and earnings for FY23 versus the previous year after posting record third-quarter results.

The ASX-listed company reported Q3 revenue of A$57.1 million, up 4% year-on-year, and 8.4% higher EBITDA of $9.3m compared with the previous corresponding period. It said March revenue of $22.9 million was its highest ever monthly revenue.

Mitchell CEO Andrew Elf said while the contractor’s average operating rig count of 72 for the latest quarter was down on the same time last year (75), improved productivity and pricing drove higher revenue per rig and per shift in Q3 FY23.

Included in the $9.3 million FY23 Q3 EBITDA figure was a circa-$2 million impairment loss related to a receivable from Balmaine Gold, which went into voluntary administration in March. Mitchell says its subsidiary Deepcore Drilling is continuing to drill under the administrator.

Mitchell’s revenue and EBITDA for the first nine months of FY23 were $177.35 million (up 12.7% yoy) and $25.9 million (down 0.8%), respectively.

FY22 full-year revenue was $213.4 million and EBITDA was $32.2 million.

Mitchell finished trading Thursday up 11% at 35c, capitalising the company at A$76 million.


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