DRA Global (DRA) H1 2024 earnings summary

Executive summary

• Achieved consistent operating performance in 1H24, with all business units contributing to revenue strength and five consecutive halves of profitable results.

• Revenue for 1H24 rose 4.8% year-over-year to $444.9M, with underlying EBIT up to $30.3M from $23.5M, driven by strong EMEA project performance.

• Net profit attributable to owners fell 69.8% year-over-year to $5.3M, impacted by higher tax and non-recurring items.

• Secured A$220M in new contracts and extensions, expanding the work-in-hand backlog to A$678M and maintaining a robust A$4.2B pipeline.

• Maintained strong cash position and further reduced gearing, supporting ongoing balance sheet strength.

Financial highlights

• Revenue rose to A$445M, up from A$424M in 1H23.

• Statutory EBIT was A$9.5M (down from A$26.8M in 1H23), while underlying EBIT increased to A$30.3M (from A$23.5M in 1H23).

• Net cash position at A$117.4M, with gearing reduced to 0.5% from 7% at FY23.

• Gross profit increased to $107.3M from $96.9M year-over-year.

• Basic EPS dropped to 9.66 cents from 32.44 cents year-over-year.

Outlook and guidance

• Focus remains on quality of earnings, operational discipline, and capital allocation priorities into 2H24.

• 2H24 forecast remains stable with a strong $4.2B pipeline and diversified revenue across geographies and services.

• Profitability may be affected by commodity cycles, skilled labor shortages, and inflationary pressures.

• Negotiations for a new debt facility are expected to conclude in Q3 FY24.