Revenue rose 13.4% to $A580.2 million in the six months to December 31, while earnings before interest, tax, depreciation and amortisation were also up slightly from $142.7 million to $143.5 million.
Despite all key divisions recording increased revenue, net profit fell 11.9% over the prior corresponding period to $48.1 million.
The company, which comprises 18 integrated mining services businesses, reported that profits were dragged down by a number of significant items as well as a general slowdown in activity in the Australian mining sector from September onwards.
Significant items principally related to the restructure of financing arrangements, the acquisition of Best Tractor Parts in October and a large bad-debt provision which reduced after-tax reported earnings by $9.3 million.
Profits were also dragged down by increased material and labour costs, partially due to the Best Tractor Parts acquisition.
Managing director Ron Sayers said the company’s strategy resulted in it maintaining operating profitability despite a slowdown in the mining sector.
“By making strategic acquisitions and building businesses from the ground up, we have put together a very comprehensive portfolio of services we can offer our customers across every stage of the mining process,” he said.
“Our diversity and, in particular, the continued strong growth from Africa places Ausdrill in good stead as the mining sector resumes activity in 2013.”
Excluding significant items, Ausdrill would have reported a small increase in profit of $57.4 million from $56.9 million in the previous corresponding period.
Nearly 70% of Ausdrill’s revenue came from production-related activities, with 31% from the drill and blast sector and 24% from contract mining in Africa.
Going forward, Ausdrill expects a stronger FY2013 second half with the contribution of Best Tractor Parts for a full six months and the ramp-up of the Syama project in Mali, where Ausdrill is carrying out work under a $US540 million ($A525.8 million) contract.
Ausdrill set a target for the full fiscal year of at least matching last year’s reported net profit after tax of $A112 million.
The company will issue a fully franked interim dividend of 6.5c, to be paid on May 15.
Ausdrill shares rose 3.8% to $3.03.
