Revenue for the six months to December was up 14.3% on the prior corresponding period to $142.1 million as the company maintains its track record of strong performance, Mastermyne managing director Tony Caruso said.
“Delivering this profit amid a slowdown in the coal sector was a strong result,” he said.
“The second half is going to be well down on the first half due to the ending of one major contract and the timing of redeploying the fleet engaged on this contact, but FY2014 is looking very positive for Mastermyne.”
Late in the first half, the company was notified of the deferral of its Newstan project by Centennial Coal.
The full six-month effect of this decision will impact on the second-half earnings and margins due to the concentration of Mastermyne plant and equipment located at this project.
The timing of redeploying this equipment into new dry hires and on the company’s projects will see margins reduce in the second half but return in FY2014, according to Mastermyne.
The company expects revenue for FY2013 to be $245 million to $255m, with NPAT of $12m to $13m.
Despite the weaker second-half outlook, Mastermyne is well positioned on the majority of its projects, according to Caruso.
The company also expects that as the coal market recovers, mine owners will increasingly utilise contractors to execute packages of work to ensure the long-term sustainability of the mine is not impacted.
Utilising contractors also benefits the mine owner by avoiding increased fixed costs in their operations, Caruso said.
“The outlook for FY2014 remains very positive for Mastermyne,” he said.
The company has $447m in active tenders, a large portion of which will be awarded in the next three months, contributing revenue from early FY2014.
As well as these active tenders, the company has also identified a further $545m in tendering opportunities that will come through in the next four months, the majority of which will also contribute revenue in FY2014.
Caruso said the company was also confident of placing the fleet previously deployed at the Newstan project, and returning utilisation rates and margins to normal levels.
In addition to new tendering and fleet hire opportunities, Mastermyne is confident of renewing current contracts in the order book as they fall due.
These opportunities will support the return of EBITA margins at historical levels of 9% to 9.5% and continued revenue growth. The company remains positive about its prospects for FY2014 and beyond, despite the subdued second half, Caruso said.
