Here’s why the Perenti (ASX:PRN) share price is down 12% today

The Perenti (ASX:PRN) share price is down more than 11% today after the company released its half-year results. Here’s a summary.

| More on:
sad looking miner holding his head down

Image source: Getty Images

Perenti Global Ltd (ASX: PRN) shares are falling lower today after the company released its half-year results for the period ending 31 December 2020 (1H21). At the time of writing, the Perenti share price has tumbled 11.89% to $1.26.

Let’s take a look at what the mining services business reported.

What did Perenti report?

The Perenti share price is taking a dive after the company reported it generated statutory revenue of $1 billion for the 1H21 period but posted a net loss after tax of $63.8 million.

Perenti advised that these results were materially impacted by “some one-off items recognised in 1H21”. It further stated that, because of these costs, it does not believe the statutory results reflect the underlying performance of the company.

Underlying results do not consider the financial implications of one-off items. As such, Perenti’s 1H21 group underlying net profit after tax (NPAT) was $44.6 million, a 26% dip compared to 1H20.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $200.9 million.

Perenti further noted that fluctuations of the US dollar and the brunt of coronavirus impacts also knocked its 1H21 performance around during the period.

The board declared an unfranked interim dividend of 3.5 cents per share.

CEO comments

Reflecting on Perenti’s half-year results, managing director and CEO Mark Norwell said: 

The financial and operational performance of the Group in the first half of FY21 was very encouraging as we continue to take steps to deliver on our 2025 Group Strategy while navigating the challenging and ever-evolving COVID-19 pandemic, which continues to impact our international operations…

Looking ahead, the resources sector continues to go from strength to strength. Exploration expenditure is forecast to increase during 2021 and the value of committed mining projects, in Australia alone, is the highest in a decade with many more feasibility stage projects in the pipeline. Perenti has a strong balance sheet, a highly experienced team with a track record of delivering excellence across our businesses. The significant investments we have made in our people, our business structure and our systems will ensure we continue to be well positioned to capitalise on the expected resources sector growth as we deliver against our 2025 strategy.

Perenti share price snapshot

The Perenti share price has fallen by nearly 9% over the past year but has gained 5% over the last six months.

Based on the current share price, Perenti has a market capitalisation of around $972 million. There are presently 704.3 million shares outstanding.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News