Revenues dipped to $153.6 million from $173.2 million in the same period last year, mainly on the back of reduced drilling activity in Layne’s dominant Water Resources business.
Overall mineral services revenues dropped to $20.19 million in the latest three month period, compared with $22.88 million in 2015. Adjusted EBITDA was a $2.7 million profit compared with a $300,000 loss last year.
Mineral services revenues for the first nine months of 2016 totalled $45.7 million compared with $72.4 million in 2015, including a $11.5 million decline linked to Layne’s exit from Africa and Australia. The company said its mineral drilling business was also affected over the nine months by lower activity levels in the US and Mexico as a result of weak market conditions particularly during the first half of the year.
Layne’s total revenues for the nine months to October 31 were $472.3 million versus $523.8 million in the same period last year, but adjusted EBITDA was up at $18.9 million against $16.8 million for the same nine months in 2015.
The company recently completed the sale of its Geoconstruction business segment to Keller Foundations for $47.7 million.
Layne’s shares were up 1% this week and 9% in the past month, to $10.44, capitalising the company at $211.5 million.
Original Article: http://www.mining-journal.com/services/contracting/layne-sees-minerals-lift-coming/
