Thu Feb 18 21:46:00 2010EST ("=UPDATE: Boart Longyear Tips 2010...

Thu Feb 18 21:46:00 2010
EST



("=UPDATE: Boart Longyear Tips 2010 Recovery After Net Loss In 2009," at 0105
GMT, misstated the Chief Executive's name throughout. The correct version
follows:)


By Bill Lindsay

Of DOW JONES NEWSWIRES

SYDNEY (Dow Jones)--Global drilling services company Boart Longyear Ltd.
(BLY.AU) said Friday it is adding staff and nearly tripling capital expenditure
this year to support an expected recovery in demand after posting a loss of
US$14.9 million in 2009.

The loss was down from a net profit of US$156.7 million a year earlier after
a sharp fall in demand from the mining industry forced it to raise around
US$700 million to avoid breaching debt covenants and repay all its short-term
debt.

The result appeared below expectations for a net profit of around US$9.8
million according to a poll of four analysts by Dow Jones Newswires, but was in
line with guidance provided by the company at its first half results in August.

Boart Longyear is the largest global provider of contract drilling services
for mineral exploration and hires out its fleet of around 1200 rigs for water
and energy exploration and for environmental sampling. It also manufactures
drilling tools for customers in over 100 countries, and said it was "optimistic
but cautious" about a global demand improvement during the current year.

"We expect improvements in business activity from 2009 levels in the coming
months however the exact timing and magnitude of this improvement remains
uncertain," it said in a statement.

The company is forecasting revenue to grow by 15% this year to US$1.125
billion, and earnings before interest, tax, depreciation and amortization of
US$170 million, up from US$111 million last year.

Chief Executive Craig Kipp said on a conference call the firm has hired
around 1,000 staff over the last six months and set its capital expenditure
budget for this year at US$100 million, up from US$37 million in 2009, with
around half of that budgeted for enhancements to its rig fleet.

"We've got some fairly cautious views but we're still optimistic," said Kipp,
noting that earnings visibility would remain "clouded" until around May, as
"the mining industry basically shuts down," in December and January.

He also said the group continued to talk to other companies about potential
acquisitions.

"We're still looking at acquisitions, there are some nice opportunities out
there, but we're being very cautious until we see exactly what's going on in
this market," said Kipp.

Full year revenue fell 47% to US$978.2 million from US$1.84 billion a year
earlier, in line with its forecast for revenue to fall around 50% compared with
a record result in 2008.

It had also said it expected its adjusted earnings before interest, tax,
depreciation and amortization margin to be around 13%, and with adjusted EBITDA
of US$128 million, its margin came in at 13.1%, down from 20% last year.

Boart Longyear did not declare a final dividend and didn't pay a final
dividend a year earlier.