1/2 year in - div!! and profit, page-25

Having listened to today's presentation, I can report that BLY was not bullish on global economic conditions and expects utilisation growth to be flat over the next 6 mths.

They did also mention that price is experiencing a hang over from the GFC as most contracts are/ were written Nov/ Dec and that any growth in revenue will only come through increased price as new contracts are drawn up in the coming months.

Large mention was made of the $150M capex allocated to maintenance of aging rigs critical to maintaining safety standards.

In terms of M&A, opportunities arise regularly, however those are generally priced on favourable forward earnings and BLY are cautious toward such projections and are holding cards close to chest for now.

They also indicated that as Aust makes up only 7% of profit, The mining tax was not considered a great threat.

To summarise, the next half will deliver similar results to 1H albeit a small increase in the price component on flat volume. The market was obv expecting further growth and a more bullish outlook hence the pummelling it has rec'd.

DYOR