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Highlights:
- Emeco’s board has released FY22 results and FY23 guidance today.
- The company’s EBITDA and NPAT increased by 5% and 22%, respectively, in FY22.
- In FY23, the company is expecting its earnings to be between AU$245 to AU$260 million.
Today the board of the mining company Emeco Holdings Limited (ASX:EHL) released some updates from FY22 activities and shared guidance for FY23.
Meanwhile, Emeco’s shares were spotted trading 3.355% lower on ASX at AU$0.720 per share as of 1:48 PM AEDT today (17 November 2022).
The share price of Emeco has declined by 32.55% on ASX in the last one year. On a YTD basis, the company’s share price came down by 19.66% on ASX (as of 1:48 PM AEDT today).
Details of Emeco’s FY22 activities
The board of Emeco said that the company continued to face challenges in its business due to COVID-19, disruption in the supply chain and inflation in FY22. However, the board mentioned that Emeco successfully overcame the challenges, delivering positive financials during FY22.
In FY22, Emeco delivered an EBITDA of AU$250 million, up by 5% from the previous corresponding period (FY21). The company’s operating NPAT (Net Profit After Tax) increased by 22% to AU$69 million during this period, compared to FY21.
The company’s balance sheet remained strong, with a positive cash flow in FY22. The cash generated in the given financial year was used for investing in sustaining and replacing Emeco’s assets, business growth, and other capital management initiatives.
Emeco’s FY23 guidance
Considering the current market conditions, Emeco’s board said that it was expecting growth in its earnings across its rental and workshop business in FY23, more towards the second half of the financial year.
Emeco expects its EBITDA in H1 FY23 to be between AU$109 to AU$113 million. Additionally, the company expects to experience good weather conditions on the east coast and expects an improvement in earnings. As a result, the full-year guidance of Emeco is between AU$245 to AU$260 million.
