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This ASX 200 mining share is rising on solid half year result

The Perenti Global Ltd (ASX: PRN) share price is up 3.91% to $1.46 per share after the ASX 200 mining group reported a solid half-year result after market close yesterday.

What did Perenti Global report yesterday?

The group posted half-year revenue of $1 billion, which is up 5.3% on the prior corresponding period (pcp). Perenti’s earnings before interest and tax (EBIT) edged 7.66% higher to $111.0 million but net profit after tax (NPAT) slumped.

Group NPAT came in 6.97% lower at $60.1 million largely due to Perenti’s normalised taxation expense. The group’s strong performance in underground mining was offset by weak surfacing mining operations in Africa. Australian underground mining and surface mining were both strong and helped prop up the half-year result.

Perenti’s operations suffered a disruption earlier this year with a tragic incident hitting its AMS operations in November, which saw 19 of the group’s employees lose their lives and a further 26 injured.

The Aussie group reported a solid financial position with net leverage of 1.4 times and gearing of 31%. Perenti’s strong operating cash flow totalled $104 million, which supported its 3.5 cents per share interim dividend payout. Perenti said it is on track to meet its most recent FY 2020 earnings guidance. 

Looking ahead, the pipeline is strong with $5.7 billion of work in hand. Perenti management is confident that it is advancing on its 2025 Group strategy goals following the result, and 

How have the ASX 200 mining shares performed recently?

Shares in the ASX 200 mining group have disappointed in 2020, falling 12.19% before today. That has tipped Perenti’s market capitalisation below the $1 billion mark to $965 million.

I think the group’s shares are worth watching today as investors weigh the underlying position against weaker statutory numbers.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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