First time poster here but feel I can add extra colour as I was on the call as well. Mgmt was shy/couldn't provide Jan/Feb utilisation rates but provided commentary below:
- One investor put it to mgmt that how to read the Jan/Feb softness was to think revenue was flat v pcp but was 'significantly' down from mgmt expectations. Costs kept running so margins likely impacted here. - Mgmt said that the last two years have seen exploration teams from their clients eager to start digging early and so the last two Jan/Febs have possibly been running at abnormally higher utilisation rates. - January miss was more from bad weather in Qld, Feb miss was more delay in drilling programs - mgmt posited that after 2 years of lockdowns, clients are 'taking a breather' gor an extended break before they restart drilling. Timing is not a structural issue, mgmt still upbeat on drilling to take place. - January usually a soft month in terms of seasonality.
Also, buyback likely stopped as a result of blackout period... not so much because they knew about Jan/Feb weakness.
Cash conversion looked good as usual. Buyback roughly half completed so likely continues in 2H.
DDH Price at posting:
90.0¢ Sentiment: None Disclosure: Held
