Specialist Australian drilling services company DDH1 has declared higher unaudited pro-forma EBITDA of $74.8m, which is 7.9% higher than the forecast of $69.3m contained in its Initial Public Offering Prospectus.
DDH1, which listed on the ASX in March, is a profitable WA-based drilling company servicing the mining and exploration sectors, and an industry leader in deep hole directional drilling.
The improved performance was mainly due to revenue exceeding forecast by about 5%, $2.3m additional training incentives received and $1.6m lower depreciation than forecasted.
Managing Director and CEO Sy Van Dyk said the preliminary results, which remain subject to finalisation and external audit, reflected a strong operating environment, DDH1’s market-leading position and ability to deliver in line with its growth strategy.
DDH1 expects to report its full-year FY21 audited financial results in late August 2021.
As highlighted in the Prospectus, DDH1 remains vigilant of its exposure to operational disruptions attributable to COVID-19, including the impact of snap lockdowns, border closures and quarantine requirements that continue to impact on the company’s ability to freely mobilise its nation-wide workforce.
“DDH1 has continued to benefit from the strong macro-economic conditions that suit our diversified commodities exposure, client base and geographic footprint,” Mr Van Dyk said.
“Our Australia-wide, diverse client base and prospective client base remain actively engaged across all stages of mineral exploration and resource definition drilling and we are delivering the range of quality drilling services that they are demanding.
“The company’s transition to becoming an ASX-listed company has been seamless.”
