Master Drilling final results December 2018
Revenue for the year increased to USD138.7 million (2017: USD121.4 million), gross profit decreased to USD43.6 million (2017: USD44.6 million), operating profit lowered to USD23.6 million (2017: USD24.9 million), profit attributable to owners of the parent came in at USD16.8 million (2017: USD17.2 million), while headline earnings per share fell to USD10.7 cents per share (2017: USD11.6 cents per share)
Since listing in 2012, the Company has achieved compound annual growth and delivered on the key strategic objectives set out in its listing prospectus. This, coupled with significant ongoing cash generation, enables the company to strike a balance between continued investment in capital projects to support the company's further growth and enhancing returns to shareholders through the payment of appropriate dividends. Thus, the Board has declared a gross dividend of ZAR26,0 cents per share on 25 March 2019 payable to shareholders recorded in the company's share register on 17 May 2019.
Company outlook and prospects
Diversification across regions, commodities, currencies and industries remains a key part of our long-term strategy. We are experiencing strong demand with increased enquiries across the various regions and commodities and expect this to continue.
With volatility and uncertainty likely to prevail in global markets in the foreseeable future, we remain cautiously optimistic that the resolution, or the minimisation of geopolitical factors as well as a measured, rather than significant slowdown in the global economy will create a favourable operating environment in 2019.
Various opportunities in first world countries such as Australia, Canada and USA are coming to fruition and are expected to increase the Group's footprint across the world in the near future.
The upswing in the commodity cycle has had a positive impact on our order book with committed orders of USD203.6 million and a healthy pipeline of USD578.6 million. Although not immediately reflecting in our numbers, we do expect a positive impact on our revenue during the next reporting period.
As outlined earlier, we believe that we have used the past year to solidify the foundations of our business, which will not only help it withstand the anticipated environment but will also ensure that Master Drilling remains at the helm of some of the rapid changes shaping our industry. We will continue with our efforts to expand our footprint in countries where we do not yet have a presence and to look for opportunities to expand our sector and service diversification. This, together with our existing footprint, services and the depth of our engineering and innovation capabilities position us well to remain a leader in the sector, bearing fruit for all our stakeholders.
Master Drilling's technology and experience put the company in a strong position to continue to support its clients' drive to improve productivity and efficiencies whilst reducing operational risk.