Australian contract mining and drilling major Perenti has reported record net profit and revenue for FY23 as it moves to wrap up its A$405 million DDH1 acquisition and sets a course for circa-A$3.5 billion FY24 revenue and potentially stronger earnings.
Perenti booked EBITA of $264.1m (up 50% year-on-year) and NPAT of $132m (+58% yoy) on $2.88b (+18% yoy) revenue for FY23.
Its underground hard-rock contract mining business accounted for $2.02b (up 16% yoy) of the FY23 revenue.
Perenti said free cash flow surged to $270.7m in FY23 compared with $101.8m last year.
The DDH1 deal is expected to be wrapped up in October this year.
Perenti is forecasting $2.8-3 billion FY24 revenue and DDH1 booked $550m this year. It is guiding for $260-275m of EBITA in FY24, before any impact from DDH1. It has said previously it expects to maintain a group EBITA margin of 10%.
The company had $5.4b work in hand at the end of June this year and an “organic growth pipeline” with an estimated $14.4b of opportunities, including $10.5b in Australia, North America and Botswana.
On the decarbonisation front, Perenti said electric vehicle trials that started in 2019 would likely expand to 13 different electric heavy and light underground vehicles by January next year.