The company, which pulled out of Africa and Australia last year to concentrate on North America, Mexico and Latin America, has seen its mineral services division shrink while larger exposures to water, inliner and heavy civil markets have been more stable. Minerals revenues were down 44.9% for the three months to July 31, compared with a year ago, at US$14.3 million, while the FY17 half-year $25.57 million of revenues compared with $49.5 million in Layne’s FY16 H1. Adjusted EBITDA was up 82.4% in the latest quarter, versus a year ago, at $4.06 million.
About $7.8 million of Africa/Australia revenues for the first half of FY16 were absent the FY17 numbers.
Total Layne revenues for the second quarter of this year were $159 million compared with $176.3 million in Q2 FY16, while the company cut its net loss to $5.3 million for the latest quarter versus $23.5 million a year ago.
Its order backlog at July 31 of $286.6 million included no mineral services revenue. Layne had total debt of $160.6 million at the end of July, but cash and cash equivalents of $58.9 million.
“Our overall consolidated financial performance is expected to improve and we remain committed to returning Layne to profitability in fiscal year 2018,” president and CEO Michael Caliel said.
He said mineral services revenues fell in the second quarter due to lower activity levels in the US and Mexico, however the company was “seeing a pick-up in activity in Brazil”.
Layne’s share price is up about 67% since the start of the year. It had a market capitalisation mid-week of $174 million.
Original Article: http://www.mining-journal.com/services/contracting/layne-minerals-contracts-in-q2/
