Master Drilling Group (MDI) H2 2024 earnings summary

Executive summary

• Achieved record revenue growth of 11.5% year-over-year to USD270.8 million, with EBITDA at a record USD58.3 million and a strong order book of USD332 million at year-end.

• Dividend payment increased by 23.8% to ZAR65 cents per share, the highest ever declared, with a five times earnings cover.

• Operational efficiency improved, supported by a diversified pipeline and strategic focus on international expansion, technology commercialization, and entry into new markets.

• Significant progress on technology and innovation, with investments in automation, digitalisation, and new drilling technologies.

• Strategic acquisition of 75% of Konec Spa in Chile post year-end aligns with diversification and digitalisation strategy.

Financial highlights

• Revenue increased to USD270.8 million, up from USD242.8 million year-over-year, with EBITDA margin at 21.5%.

• Headline earnings per share rose 22.1% to 17.7 US cents (324.5 ZAR cents); gross profit increased to USD84.0 million.

• Cash generated from operations reached USD58.3 million, with net cash inflow from operations of USD42.5 million.

• Dividend payout increased by over 20%, totaling ZAR65 cents per share.

• $13 million impairment on tunnel boring and reverse circulation equipment; normalized profit before tax close to $40 million.

Outlook and guidance

• Order book at a record USD332 million, with a pipeline of USD696 million and USD210 million already locked in for 2025.

• 2025 expected to be busy, with focus on safety improvement, margin enhancement, and internal audit enhancements.

• CapEx guidance for 2025 is USD30 million, with a two-thirds allocation to expansion.

• Medium-term target to achieve a 25% EBITDA margin within three years.

• The acquisition of Konec Spa is expected to strengthen technology and fleet management capabilities.