Despite a new CEO announcement, Boart Longyear (ASX: BLY) dropped 8.18% to $1.97 on Monday after announcing year-end results.
The drilling company worried analysts by showing 122% increase in debt, $512 million in 2012 compared to $231 million in 2011.
Net profit was halved, US$68.2 million in 2012 compared to US$159.9 a year ago due. The company took a US$68 million restructuring and impairment charge.
The company’s revenue was flat, US$2.102 billion in 2012 compared to US$2.02 billion in 2011.
To contain costs, the company shed 2,200 staff, a 13% reduction headcount reduction.
Looking ahead Boart Longyear’s chairman and interim CEO, David McLemore, said the outlook had stabilized.
“Looking to 2013 all indications show that conditions across our key market segments have stabilized and the revenue run-rate over 2013 will largely mirror the second half of FY12,” said McLemore in a news release.
“Capital expenditure is at a modest US$50 million in 2013, subject to a review mid-year. We expect to extract more costs from the business in the current half of 2013. There will be a renewed emphasis on cash discipline, managing working capital and driving cash flow to pay down debt.”
Ex-Newmont CEO, Richard O’Brien, was appointed CEO of Boart Longyear. He will take the reins in April.