DIVERSIFIED mining services and commodities production company Mineral Resources has announced record revenue for the 2014 half financial year, and a 10 per cent increase in earnings before interest, taxes, depreciation and amortisation.
Citing a 90 per cent increase in iron ore volumes supported by a weaker Australian dollar, Mineral Resources recorded a 7 per cent rise in earnings from the previous half year, with a net profit after tax of $130.4 million.
Mineral Resources further contributed debt repayments of $117 million across the term, with the company position becoming cash positive in January.
The company has reportedly retained “significant” cash balance.
The company’s contracting volumes were similarly reported as “robust”, and included crushing and processing services, polyethylene pipeline engineering and construction, accommodation, and minerals handling services.
A fall in crushing revenues is expected within the coming half however, as Fortescue Metals Group has removed its substantial Christmas Creek crushing and processing services from the company’s contracts portfolio.
Mineral Resources chairman Peter Wade said shareholders could still expect an interim dividend of $0.30 per share, with finances to be distributed by late March.
“Directors have continued the policy of distributing approximately 50 per cent of normalised after tax profits to shareholders as fully franked dividends, by declaring an interim dividend of [$0.30] per share, payable for all shareholders by 20 March 2014,” Mr Wade said.
“The business now has significant financial and operational resources to develop [its strategies] and a number of strategically significant opportunities are currently being investigated by the management team to grow the business and shareholder value.”
Mr Wade confirmed the profit guidance for the company for the financial year end would continue in line with consensus forecasts of between $247.8 million and $252.8 million.
On the back of the announcement, the company stated it was looking to implement plans for new transhipment
facilities in the Pilbara and at Cockburn Sound near Fremantle, to support ongoing growth in WA’s iron ore exports.
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