JOHANNESBURG (miningweekly.com) – As JSE-listed Master Drilling continued its steep upward earnings trend, the company declared no dividend for the period ended December 31, 2015.
The drilling solutions provider, which on Thursday reiterated it was still in a growth phase, posted basic earnings per share (BEPS) of $0.13 in 2015, up from the $0.11 reported in 2014.
Headline earnings per share (HEPS) increased from $0.12 in 2014 to $0.14 in the year under review.
In rand terms, this represented a BEPS growth to 172c in 2015, from 123.7c in the prior year, and a HEPS increase from 131.5c to 175.9c during the same period.
Profit for the year to December was up 14% to $21.1-million, while revenue decreased from $132-million in 2014 to $119.9-million in the 12 months under review.
Cash generated from operations increased to $35.3-million in the year under review from $31.4-million the year before.
Meanwhile, Master Drilling’s order book for the new financial year had reached in excess of $100-million, with the copper and gold sectors representing the largest portion of work.
The company’s decision not to declare a dividend for the 2015 financial year was in line with expectations.
“It remains the board's intent that during the group's initial steep growth phase, in which the company still finds itself, its cash resources will be used primarily for investment in the development of the group's assets,” Master Drilling explained.
Master Drilling assured that, following this phase, a dividend cover ratio four to fives times the yearly headline earnings could be paid out in each six-month reporting period.
Edited by: Creamer Media Reporter
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