Perenti (PRN) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with revenue of $3.34 billion, EBITDA of $645 million, EBITA of $314 million, and NPATA of $166 million, driven by core contract mining, margin growth, and the DDH1 acquisition.

• Free cash flow reached $184 million, up 57.3% year-over-year, supporting net debt reduction and a leverage ratio of 0.7x.

• Declared a final dividend of 4 cents per share, totaling 6 cents for FY24, and completed $30 million in share buybacks (~3% of shares on issue).

• Updated dividend policy targets a payout of 30%-40% of underlying NPATA.

• Integration of DDH1 completed successfully, with realized synergies and Drilling Services now among the largest globally.

Financial highlights

• Revenue increased 16% year-over-year to $3.34 billion, EBITDA to $645 million (+17%), EBITA to $314 million (+19%), and NPATA to $166 million (+26%), all record highs.

• EBIT margin improved to 9.4%, up from 9.2% in FY23.

• Free cash flow conversion from EBITDA at 98%.

• Interest expense rose to $69 million due to higher rates and DDH1 acquisition-related debt.

• Effective tax rate reduced to 32% from 35% year-over-year.

Outlook and guidance

• FY25 revenue forecasted at $3.4–$3.6 billion, EBITA at $325–$345 million, and free cash flow above $150 million.

• Leverage expected to further reduce to 0.6x–0.7x.

• CapEx guidance for FY25 is approximately $330 million, including deferred payments from FY24.

• Free cash flow expected to be weighted to the second half of FY25.

• Work in hand totals $5.1 billion, with a pipeline of $15.9 billion, mainly in investment-grade jurisdictions.