Pro-forma EBITDA was tipped to land at A$69 million, but ended up at $75 million, almost 8% higher than expected.

 

Earnings before interest and tax were 16% higher than forecast at $51 million.

 

DDH1 said the improvements were driven by 5% higher revenue, $2.3 million in additional training incentives, and lower depreciation. 

 

Managing director Sy Van Dyk said the company had continued to benefit from the strong macro-economic conditions and the historical underinvestment in mineral exploration across Australia, which was benefitting utilisation of its growing fleet and diversified mix of more than 100 clients, commodities, and geographies.

 

However, he warned operational disruptions attributable to COVID-19, including the impact of snap lockdowns, border closures and quarantine requirements, continued to impact on the company's ability to mobilise its workforce.

 

The company expects to operate 103 rigs in its fleet this half, and is expanding its fleet to 115.

 

The preliminary results will be audited and finalised for release in late August. 

 

DDH1 expects to announce maiden dividend as well. 

 

The driller raised $150 million in its initial public offering in March at $1.10 per share.

 

The stock has traded between 81c and $1.20 over the past four months, and was last traded at $1.14, valuing it at $377 million.