Boart Longyear, the world's biggest supplier of drill rigs to the mining industry, says the worst of a price downturn is over after posting a first quarter loss of $US61 million
The revenue-challenged drilling services outfit narrowed its first quarter loss for 2015/16, with the deficit down from $US71 million a year ago.
Revenue for the three months ended March 31 fell 24 per cent to $142 million, driven by lower volumes and a stronger US dollar.
"We expect that the worst of the pricing pressure experienced by the company over the past few years, particularly in the drilling services division, is done," Boart's recently-promoted chief executive Jeff Olsen said in a statement.
Mr Olsen said the first quarter of 2016 was another challenging quarter for the resources sector as the company pushes ahead with cost cutting and productivity measures.
Over the past year Boart has slashed its total workforce by 17 per cent to 4,611 employees.
"Though we have seen recent improvements in commodity prices, gold in particular, exploration levels remain low," Mr Olsen said.
Boart said pricing was down three per cent in the drilling services division in the first quarter of 2016, compared to the first quarter of 2015 while pricing in the products division was relatively flat.
Mr Olsen said the company expected to improve profitability from productivity measures and would operate on a cash-neutral basis from 2017 to deal with its 2018 debt repayment schedule.
Boart reported a massive $US326.3 million ($A457.48 million) full year loss in December 2015 due to lower prices, volumes and unfavourable currency movements.
The company's shares, which have more than halved in the past 12 months, were 0.3, or three cents, lower at 9.7 cents at 1200 AEST.
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