Master Drilling Group (MDI) H1 2024 earnings summary

Executive summary

• Revenue rose 17.3% year-over-year to USD127.0 million, achieving a record interim result despite global market uncertainty.

• Net cash from operating activities increased 119.8% to USD27.7 million, with a healthy cash conversion ratio of 1.54 and working capital cycle under 80 days.

• Profit after tax fell 75.1% to USD3.6 million, mainly due to impairment losses on equipment.

• Strong sales pipeline of USD600 million and committed order book of USD271.4 million position the company for future growth.

• No interim dividend declared; a final dividend will be considered at year-end.

Financial highlights

• Revenue reached USD127.0 million, a 17.3% increase compared to the same period last year.

• EBITDA margin improved to 23.8% (excluding impairments), up from 20.8% in 2023H1.

• Headline earnings per share (HEPS) at 9.0 US cents, down from 14.5 US cents in 2023H1.

• Normalised profit for the period was USD16.9 million, up from USD14.6 million in 2023H1.

• Debt rose to USD46.0 million; gearing ratio stable at 6.8%.

Outlook and guidance

• Record pipeline of USD600 million and strong order book support future growth.

• Ongoing investment in disruptive technology, digitalisation, and operational excellence.

• Focus on optimizing fleet utilization, prudent capital management, and innovation.

• Emphasis on safety, automation, and digital transformation to drive competitiveness.