- Major Drilling (MDI) reports strong results – revenue up 50 per cent, net earnings doubled
- Net earnings of $14.3 million or $0.17 per share, highest in 9 years and up ~100 per cent from same period last year
- Net debt reduced in the quarter by $14.5 million to $30.0 million
- Net earnings were $14.3 million or $0.17 per share for the quarter, compared to $7.0 million or $0.09 per share for the prior year quarter
- Major Drilling Group International Inc. (MDI) is down 1.40 per cent, trading at C$8.41 at 12:34 pm EST
Major Drilling Group International Inc. (MDI) reported results for the second quarter of fiscal 2022, ended October 31, 2021.
Some highlights include revenue of $170.7 million, up 50 per cent compared to the same period last year, and up 13 per cent from last quarter. EBITDA for the quarter was $30.7 million, an increase of ~60 per cent compared to the same period last year.
Net earnings of $14.3 million or $0.17 per share, highest in 9 years and up ~100 per cent from the same period last year. Net debt was reduced in the quarter by $14.5 million to $30.0 million.
“Our second quarter of fiscal 2022 was very encouraging as activity levels continued to increase in most regions. I am particularly pleased with the progress our teams have made in developing our labour force, enabling us to grow in high-demand regions while maintaining our dedication to safety, productivity, and quality,” said Denis Larocque, President and CEO of Major Drilling.
“Our strategy of holding rigs and inventory ready for immediate deployment to customers continues to deliver results,” added Larocque.
The second quarter, which ended on the last day of October had total revenue of $170.7 million, its highest quarterly revenue since the second quarter of 2013, up 50 per cent from revenue of $114.2 million recorded in the same quarter last year.
Revenue for the quarter from Canada – U.S. drilling operations increased by 33.7 per cent to $94.4 million, compared to the same period last year. The region saw continued growth in strong demand despite headwinds from the industry-wide labour challenges.
South and Central American revenue increased by 70.4 per cent to $36.8 million for the quarter, compared to the same quarter last year. The growth in the region from the prior year was mainly attributed to operations in most countries recovering from the impacts of COVID-19.
Australasian and African revenue increased by 79.5 per cent to $39.5 million, compared to the same period last year. The growth in the region from the prior year was mainly attributed to the McKay acquisition in Australia, which continues to have robust demand for drilling services.
The gross margin percentage for the quarter was 22.0 per cent, compared to 20.0 per cent for the same period last year. Depreciation expense totalling $10.7 million is included indirect costs for the current quarter, versus $9.5 million in the same quarter last year.
General and administrative costs were $14.1 million, an increase of $2.5 million compared to the same quarter last year.
The increase was driven by the addition of the Australian operations and inflationary wage adjustments. The prior year was reduced by funds received from government assistance programs, related to the pandemic, that are no longer in place in the current quarter.
The income tax provision for the quarter was an expense of $4.5 million compared to an expense of $2.0 million for the prior-year period. The increase in the tax expense was related to an increase in overall profitability from the prior year.
Net earnings were $14.3 million or $0.17 per share ($0.17 per share diluted) for the quarter, compared to $7.0 million or $0.09 per share ($0.09 per share diluted) for the prior-year quarter.
Major Drilling Group International Inc. is one of the world’s largest drilling services companies primarily serving the mining industry.
Established in 1980, Major Drilling has over 1,000 years of combined experience and expertise within its management team alone.
Major Drilling Group International Inc. (MDI) is down 1.40 per cent, trading at C$8.41 at 12:34 pm EST.
