Master Drilling improves interim profit

Master Drilling, a leading raise bore drilling company, reported improved interim profit despite a 6% drop in revenue.Master Drilling, which listed on the JSE in 2012, reported attributable profit of $9.3m for the six months to end-June, an 11% increase compared to the same period a year earlier.Revenue, however, fell 7.5% to $60.3m. In rand terms, revenue was 3% higher.

Master Drilling, which operates in SA, Africa and Latin America, said currency fluctuations combined with its fleet mix and utilisation had pulled revenue down, but this had been offset by cost savings and operating efficiency to drive the profit line. Cash holdings grew to $13.6m from $12.5m at the end of December. Outside its ‘rest of the world’ revenue base, which fell 81% to $222,000 in the period, the next largest fall was in SA where the mining sector has come under pressure.

Revenue from SA fell 25% to $17.4m.

Revenue from Africa shot up 56% to $13.7m, while Latin America’s revenue fell 9% to $29m.

Gross profit growth came from Africa, which grew by 26% to $6.8m, while SA’s gross profit inched up 2% to $6.98m. Latin America remained flat at $9.4m and the rest of the world moved to profit from a loss before.