Swick shares surge PDF Print E-mail
Monday, 21 January 2013 12:34

Shares in drilling contractor Swick Mining Services jumped after the company posted record unaudited revenue and EBITDA for the first half and maintained its full-year guidance.

Revenue for the six months to the end of December was up 9 per cent to $75.6 million on the previous corresponding period while EDITDA was up 14 per cent to $15.8 million.

Full year guidance of between $145-$155 million revenue was maintained as well as $30.5-$34.5m EBITDA.

Managing director Kent Swick attributed the strong performance to the company's strategy of reducing its exposure to the exploration sector and focusing on the brownfield operations.

"Recent contract awards in North America are significant because it shows that the experience Swick has garnered over the last three years of providing services in that region from an operations and business development perspective has been very worthwhile," he said.

"There is a solid base load of work secured in the North American region for calendar year 2013, and we are confident of further expanding this position in the coming months.

"Based on recent contract awards, there will be a record number of drill rigs at work in the North American Division by March 2013."

Swick said it ended the calendar year with more that $21 million cash in the bank and a net debt of about $2 million.

The company expects to post its final audited full-year results in mid to late February.

Swick shares were up 2.5 cents, or 7.69 per cent, to 35 cents at 8.25am.

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