Swick doubles revenue for record half-year result
Mineral drilling company, Swick Mining Services has announced a record first half profit and an upgrade to its full year earnings forecast, as it continues its market expansion.Swick delivered a net profit after tax (NPAT) of $3.3m, based on revenue of $34.8m for the six months to December 31, 2007. The company also upgraded its full year revenue guidance from $80m, to at least $84m. Swick’s half-year result is a 200% increase in NPAT from the prior corresponding period, built on a 112% increase in revenue. Swick Managing Director, Kent Swick said the results reflect the continued growth of the company as it expanded its drilling fleet, and leveraged off of the ongoing strength in the minerals and resources sector. “Specifically, the significant increase in first-half revenue was driven by the continued roll-out of new underground diamond drill rigs,” Mr Swick said. “During the half we added seven new underground rigs and two new surface diamond rigs. We also have financing and the engineering capability in place to significantly expand the Swick fleet in the next eighteen months,” he said. The company currently has a fleet of 38 rigs and has plans to grow this to more than 90 rigs by the end of the 2009 financial year. “Producers continue to attempt to increase their production to capitalise on strong commodity prices, which despite the recent pullback remain significantly above long-term averages,” Mr Swick said. “The majority of the company’s revenue is derived from production drilling at existing mining operations, as opposed to pure exploration drilling at greenfields projects. “We are well positioned for growth as our clients continue to capitalise on the strong commodity markets,” he said. Mr Swick said the company was focused on growing its underground diamond division, which is its primary revenue contributor.