HUGHES DRILLING SURGES AFTER SOLID INTERIM PROFIT

Written on the 2 March 2015 by Nick Nichols

HUGHES DRILLING SURGES AFTER SOLID INTERIM PROFIT

SHARES in Hughes Drilling (ASX: HDX) surged more than 27 per cent today in the wake of a robust interim profit result reported last week.

The Yatala-based Hughes, Australia's leading production drilling company, reported a 44.7 per cent increase in net profit to $6.5 million.

Revenue surged 39.5 per cent to $54.5 million despite the slowdown in exploration activity across the mining sector.

Hughes says its east coast drilling operations, which accounted for 36 per cent of revenue, fell 14 per cent to $19.7 million.

However west coast operations were buoyed by the acquisition of JSW Australia at the end of 2013, leading to a full six-month contribution of $26.7 million for the December half, up from a three-month figure of $9.9 million a year earlier.

Hughes says JLW's focus on safety and cost minimisation has helped it secure a number of quality drilling contracts during the half-year.

In January, Hughes announced a new three-year drilling contract with Glencore for its Collinsville Coal Mine, as well as a short-term contract with BHP Billiton (ASX: BHP) for the Mt Arthur coal mine in NSW.

Hughes shares hit a high of 13c following announcement of these deals in January, but they fell to a low of 10c by late February.

Managing director Bob Hughes says debt repayment has been a priority for the group which accounts for no interim dividend being declared.

Hughes is still trading well below net tangible asset backing of 31c per share, up from 28c a year earlier. The shares shot to a high of 14.5c today.


Author: Nick Nichols

Latest News

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

EXCLUSIVE INTERVIEW: MEGAPORT CEO VINCENT ENGLISH ON GLOBAL EXPANSION AND HOW TO SCALE UP A BUSINESS

THE RAPID expansion of Megaport (ASX: MP1) continues with the Brisbane-based company announcing a major partnership d...

BRISBANE ENTREPRENEUR BREAKS BARRIERS IN ECO-BUSINESS

TRACEY Bailey believes that if every person understood the true social and environmental cost of every product the...

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter