ASX- and JSE-listed DRA Global reported underlying earnings before interest, taxes and amortisation (Ebita) of A$32.5-million and underlying net profit after tax and amortisation (NPATA) of A$23-million for the half-year ended June 30.
Revenue for the period amounted to A$569.3-million.
The diversified engineering, project delivery and operations management group had cash reserves of A$155.5-million at the end of the six months, no material debt and access to more than A$50-million of borrowing facilities, providing capacity for growth.
Net asset value a share was up 12% from December 31, 2020, to $4.11 apiece.
DRA’s revenue increase for the half-year is across both its projects and operations service offerings.
The Kamoa-Kakula plant facility in the Democratic Republic of Congo was commissioned ahead of schedule and below its capital budget. DRA has been involved with the project planning and development from 2017. The first copper concentrate was produced in May.
DRA also delivered the Tri-K gold mine project, in Guinea, with the first gold pour having taken place in the period under review, within budget and schedule.
DRA was also recently awarded the engineering and design of the Mt Keith debottlenecking project by BHP Nickel West, in Western Australia. This contract is for the provision of detailed engineering and design services to support the expansion of the crushing and grinding circuit at the Mt Keith operation.
“We are pleased to be presenting our first set of financial results since listing on the ASX and JSE on July 9.
“DRA listed to enhance the company’s platform for further strategic growth, which has seen the business and global footprint grow significantly over the last five years,” DRA CEO and MD Andrew Naudé says.
He adds that the profile of DRA’s business has also shifted over that period, with 57% of the A$621-million of new work secured in the period coming from the Australia, Asia Pacific and Americas region, and the balance from its longer-established Europe, Middle East and Africa region.
“As we look ahead, we will continue to execute our organic growth strategy and, where appropriate, consider targeted mergers and acquisitions to maximise value for our shareholders,” Naudé acclaims.
DRA has a significant forward pipeline with a total of A$7.5-billion in opportunities - A$5-billion of projects and A$2.5-billion of operations.
DRA’s P1 pipeline increased to A$1.4-billion as at June 30, providing a solid base for new business growth.
The company maintains its full-year Ebita forecast of A$56.9-million, up 18.6% from the previous year.
ON-MARKET SHARE BUY-BACK
As part of managing the company’s capital position, taking account of solid results for the half-year, and its strong balance sheet, DRA announced its intention to undertake an on-market share buy-back of up to 10% of ordinary shares on issue over a period of 12 months.
In addition to growth initiatives, DRA is committed to further enhancing long-term returns to shareholders with specific capital management initiatives, including the buy-back.
The buy-back will be funded from existing capital sources, including free cash.
DRA says it will maintain its strong balance sheet following completion of the buy-back.
The DRA board will continue to assess the merits of this capital management plan as market conditions evolve, as well as assess options to distribute any additional surplus cash in line with DRA’s target dividend policy of distributing between 30% to 60% of its net profit after tax from normal operations.