Master Drilling buoyed by commodity exposure

by admin 0

“Master Drilling is a world leader in raiseboring [and] providing specialised drilling services. The group provides drilling services for civil-engineering applications in a variety of emerging markets – from exploration-stage through to production-stage drilling,” it said.

“The group believes that its current commodity exposure, primarily gold, followed by iron ore and copper, stabilises the operating environment, and is complemented by generating 77 per cent of current revenue from production-stage drilling.”

[DATA MDI:Master Drilling], which reported its interim results on Thursday, saw revenue increase by 20.6 per cent to 65.1 million US dollars for the six months ending June 2014 from 54.0 million US dollars for the same period in 2013.

(WATCH VIDEO: Master Drilling FY13 results with CEO Danie Pretorius)

Operating profit grew from 11.7 million US dollars in 2013 to 13.3 million US dollars in 2014 with profit before taxation also increasing to 13.0 million US dollars from 11.1 million US dollars in 2013.

The company’s basic earnings per share grew to 5.7 US cents in the 2014 interim period from 5.1 US cents in 2013.

“Consistently focused on expanding our global footprint, we believe that growth into the rest of Africa will be achieved from our solid South African base, and in partnership with major blue-chip mining companies,” Master Drilling said.

(READ MORE: Master Drilling pursues organic growth opportunities)

“To sustain our growth, we believe that it is imperative to expand our services beyond raisebore drilling. To this end, we have made significant progress by diversifying our service offering in presenting solutions to the challenges faced by our customers.”