The company posted a $16,000 profit for FY22 - a marked improvement on the $5.9 million loss it posted in FY21.

That result came on the back of earnings before interest, tax, depreciation and amortisation of $32 million, up 24% on the prior year and revenue of $213 million, up 11% from FY21.

In the company's annual report Mitchell CEO Andrew Elf said the revenue increase was driven by a combination of increased rig utilisation and pricing.

"The average operating rig count in FY22 was 74.8 compared to 71.6 in FY21 with the increase largely due to new or expanding contracts," he said.

"Given that the operating rig count at June 30 was 84 and that only a portion of the LF160 rigs were operating at that time, Mitchell expects that revenue to be materially greater in FY23, compared to FY22."

Elf said the heavy lifting had been done and Mitchell was well positioned heading into FY23.

Helping that buoyant view is the increasing demand for drilling services from explorers through to multinational resources companies.

Supply constraints on rigs is supporting increased utilisation, pricing and contract terms.

"Operationally, FY22 was an extremely successful year, which primarily focused on executing a capital investment program as part of Mitchell's broader organic growth strategy," Elf said.

"As part of this organic growth strategy, Mitchell has taken deliver of 12 new, state-of-the-art LF160 drill rigs and I couldn't be prouder of making this project a success."

Mitchell has instituted a policy that, from July 1, up to 75% of the company's reported post tax profits will be paid to shareholders in a dividend. It expects to declare an interim dividend in the company's half year results, expected in February 2023 and a final dividend the following August.