Master Drilling Group said Friday its headline earnings per share are expected to be between 1.9% lower and 18.1% higher for the six months to June 30 than the comparative period last year, as reported in rands.
The group, one of the largest rock boring and drilling services providers in the world, said in a trading statement that earnings per share (EPS) were expected to be between 6 and 40.30 cents, compared to EPS of 171.30 cents per share for the same period a year before.
This would represent a decline of between 96.5% and 76.5% lower than the comparative period, as reported in ZAR. The lower EPS was largely the result of non-cash adjustments deemed appropriate in the interim results.
EPS, in US dollars, were expected to be between 0.30 and 2.20 US cents per share, compared to 9.40 US cents per share for the comparative period, which was between 96.9% and 76.9% lower than the comparative period.
HEPS, in US dollar terms, was expected to be between 4.8% lower and 15.2% higher.
Non-cash adjustments related to the reverse circulation drilling equipment in the North and Central American operations not being utilised due to a decline in the relevant market.
“The group has therefore provided for impairment losses on this equipment while it looks to market the equipment elsewhere in the world.”
Another impairment loss was reported on the mobile tunnel boring machine, as no formal agreement was in place to project future cash flows due to uncertainty over commodity prices within the machine’s target industry.
The interim results are expected to be released publicly on August 27. – Edward West