Perenti reports record year of earnings

Perenti (ASX: PRN) has delivered another year of strong financial results, headlined by record revenue and underlying earnings and free cash flow of $184m.

The acquisition of DDH1 in October was a major highlight for Perenti. Following the acquisition, Perenti created its Drilling Services Division, combining Ausdrill with four DDH1 brands: DDH1 Drilling, Ranger Drilling, Strike Drilling and Swick Drilling.

Perenti also drilled down on its safety and sustainability initiatives, reporting a Serious Potential Incident Frequency Rate (SPIFR) of 2.6, down from 2.7 in FY23. Total Recordable Injury Frequency Rate (TRIFR) was 5.3, down from 5.4 in FY23.

The Perenti board now has 57% female representation, with plans in place to increase female participation across all areas, according to Perenti.

Perenti managing director and chief executive Mark Norwell says the Perenti team has successfully delivered another year of impressive results.

“The strong free cash flow has allowed us to further reduce leverage, recommence dividends and continue our buyback, all whilst maintaining investment in earnings growth during FY24,” he said.

“During recent years, our business has built significant scale and diversity across our divisions.

“Our scale and diversity allow for fluctuations related to operations or capital requirements to be smoothed out as projects move through the different stages of development, operational ramp up and mine closure.

“This ultimately allows for greater consistency in earnings and reliable free cash flow generation.”

Perenti has declared a 4c per share final dividend. This lifts the total dividend for FY24 to 6c per share, implying a 5.9% yield based on the August 19, 2024, closing share price.