Soaring profitability over the fiscal year was largely attributed to coal industry demand for blast hole drilling used in mine production rather than exploration drilling.

Hughes said blast hole operation has not experienced any reduction in demand following the recent movements in coal prices and indicated that full year contributions, new contracts and sales to third parties all experienced growth over the 12-month period.

The company, which owns the largest contract coal sector blast hole rig fleet in Australia, is expecting its fleet to rise from 27 to 40 rigs by June 2013.

Hughes also credited the year’s high performance on the consistently long life of Australian open pit coal mines and the stable “blue chip” nature of many coal mine owners.

Growth came from more rigs in pits in which Hughes already operated and in new pits of existing clients.

Established clients include Peabody Energy’s Wilkie Creek, Millennium and Wambo mines, Idemitsu’s Boggabri mine in New South Wales and two Queensland mines operated by Leighton Contractors among others.

Hughes said it has not received any information from its clients that may indicate that this position of accelerated growth is likely to change.