Shares of Boart Longyear Ltd. (ASX: BLY) have jumped 5% this morning after the drilling services company managed to narrow its net loss significantly during the 2014 financial year.
So What: Although revenues fell by more than 29% to US$867 million, reflecting the declining demand for mining services, Boart Longyear posted a net loss of US$332.7 million, which compares favourably to the US$619.9 million loss recorded in 2013. Meanwhile, EBITDA (earnings before interest, tax, depreciation and amortisation) came in at $31 million and earnings per share (EPS) were -70.8 cents, compared to -136.1 cents in 2013.
Given the commodities crisis, mining companies are heavily scaling back their exploration costs and moving their mining services in-house, thus creating strong headwinds for companies such as Boart Longyear, Bradken Limited (ASX: BKN) and Worleyparsons Limited (ASX: WOR). Since the beginning of 2011, Boart Longyear has fallen by more than 95% to trade at just 21 cents. It peaked at around $27.50 in 2007.
Now What: The company said that "extremely competitive industry pricing" and other factors, including the strengthening U.S. dollar, would continue to impact the company's financial results in 2015. The company did not declare a final dividend, just as it didn't declare an interim dividend when it reported six months ago.
Luckily, while Boart Longyear has scrapped its dividend, there are plenty of other great dividend stocks you can buy right now!
