Perenti (ASX:PRN) meets earnings guidance in FY24. Here’s what to expect in FY25

Highlights

• Perenti is an ASX-listed diversified global mining services company involved in contract mining, mining support services, and future technology solutions
• In FY24, PRN’s revenue increased by 16% YoY to AUD 3,342 million
• DDH1 Holdings Singapore Pte. Ltd. has the largest stakes in the company, with a shareholding of approximately 5.96%

Perenti Limited (ASX:PRN) is a diversified global mining services company involved in contract mining, mining support services, and future technology solutions. Its portfolio comprises sustainable, interconnected, and value-adding businesses focused on mining services and technology.

In the financial year 2024 (FY24), the company delivered 16.04% YoY increase in its revenue to AUD 3,342 million, 18.97% YoY increased in EBIT (A) to AUD 314 million and nearly 25% jump in NPAT (A) to AUD 165.80 million. The addition of the DDH1 group for nine month and operational growth drove its revenue during the FY24. 

PNR’s FY24 results were in-line with guidance. Moreover, this is the third consecutive year which witnessed a rise in EBIT(A) margin, from 9.2% in FY23 to 9.4% in FY24. 

Top 10 Shareholders of PRN

The top 10 shareholders of PRN hold around 33.40% of the total shareholding, with the top four holding nearly 19.71%. DDH1 Holdings Singapore Pte. Ltd. has the largest stake in the company, with a shareholding of approximately 5.96%.

Recent Business Update

Through an ASX filing dated 09 August 2024, the company informed that its underground mining business, Barminco inked a contract with Barrik Gold Corporation, extending the existing contract for additional three years. Under the contract, PRN will continue to offer contract mining at the Hemlo gold mine, located in Canada. The value of the contract is over AUD 200 million and includes underground mine development, production and mining support services.

Outlook

In FY25, the company expects to record revenue in the range of AUD 3.4 – 3.6 billion, EBIT (A) of between AUD 325 – 345 million and leverage of 0.6x – 0.7x. Net capital expenditure of nearly AUD 330 million and free cash flow of over AUD 150 million is anticipated in FY25.

Share performance of PRN

PRN shares closed 0.50% higher at AUD 1.005 apiece on 21 August 2024. In the last one year, PRN’s share price has dropped by almost 5.19% and in the last six months, it has increased by around 6.91%.

52-week high of PRN is AUD 1.220, recorded on 22 August 2023, and 52-week low is AUD 0.765, recorded on 6 February 2024.

PRN Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 August 2024. The reference data in this report has been partly sourced from REFINITIV.

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