Master Drilling revenue up 40% to $171.8mn

Master Drilling, a company providing drilling solutions for clients in the mining and construction sectors, recently reported a 40% increase in revenue to $171.8 million, accompanied by a nearly fourfold rise in annual headline earnings per share. However, in light of the ongoing conflict between Ukraine and Russia, the company has decided to withhold its annual dividend, citing global uncertainty. CEO Daniel Pretorius elaborated on the impact of the conflict on the business and the future growth prospects in a recent interview with CNBC Africa. Pretorius emphasized that the conflict has had minimal immediate impact on Master Drilling's operations, with only a small portion of the business exposed through investments in Russia. However, he mentioned that logistical challenges arising from sanctions have made it difficult to conduct business efficiently in the region. As a result, the company has decided to suspend support for its Russian operations in the short term. With regards to future growth opportunities, Pretorius highlighted a potential uptick in performance for 2022, especially if certain business units that underperformed in 2021 show improvement. He also expressed optimism about expanding business operations in countries like Canada and Australia, citing significant mining activity in those regions. A substantial portion of the company's order pipeline is Africa-based, with projects in countries like Tanzania, the Democratic Republic of Congo, and Mali. The CEO emphasized the importance of monitoring the situation surrounding the conflict on a daily basis to assess when the dividend freeze may be lifted. Shareholders can expect a decision on resuming dividend payments within the next two to three months, pending further clarity and stabilization in the global landscape. Overall, Master Drilling remains cautiously optimistic about its future prospects, prioritizing adaptability and strategic decision-making in the face of global challenges.