Boart's first quarter loss widens

Drilling company Boart Longyear made a $14 million EBITDA loss during the first three months of the year.

Drilling services company Boart Longyear says its efforts to cut costs and streamline its operations are having an effect, despite its first quarter loss blowing out by 12 million.

The company reported a $14 million loss in earnings before interest, tax, depreciation and amortisation for the three months to March 31, following a $2 million loss for the same period a year ago.

But chief executive Richard O'Brien said the company's loss from trading activities, which excludes one-off factors, rose by just one million, despite a $10 million slide in revenue.

The group's trading loss for the quarter was $24 million, up from $23 million a year ago, while revenue fell to $187 million, from $197 million.

"Despite continuing challenges we face from historically weak demand for our services and products, we are seeing the benefits of our aggressive cost actions and other strategies to streamline and improve productivity in our core operations," he said.

The company last year received a $US342 million international private equity bailout package after the sharp slowdown in mining services left it struggling to cope with its then $US500 million of debt.

Boart Longyear shares closed steady at 19.5 cents.


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Source: AAP


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