Perenti lifts full-year earnings guidance

Major Australian contract miner and driller Perenti has cited favourable market conditions and currency movements as factors in a significant upward revision of its FY23 earnings guidance.

The company has increased its full-year EBITA range to A$215-230 million, from $185-205m advised in August, and now expects revenue to be $2.6-2.7 billion versus $2.4-2.5b previously.

It has also upped forecast capital spending for the year from about $330m to $340m.

“The strong finish to FY22 has continued into FY23 and if the operating conditions, including exchange rates, remain as they are, we will see EBITA performance heading towards the higher end of our guidance range,” Perenti said. It said favourable movements in the US dollar to Australian dollar exchange rate, and improving operational and commercial conditions were factors in the upgrade.

“The impact of recent exchange rate volatility on our FY23 guidance is estimated at between $12m to $16m of additional EBITA and an approximate $10m unfavourable movement in capital expenditure.”

ASX-listed Perenti’s share price is up 9% in the past month and 16% in the year to date, giving it a current market value of about $751m.


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