By a staff reporter, with AAP
Boart Longyear Ltd says the outlook for the global mining sector remains "very strong" in the short to medium term, despite a sharp fall in its full-year net profit.
For the 12 months to December 31, Boart Longyear's net profit fell 57.4 per cent to $68.164 million.
The mining services provider's revenue edged down 0.4 per cent to $2.011 billion.
Boart Longyear will pay a final dividend of one cent, 0.35 cents franked. This takes the company's total dividend for the year to 7.4 cents.
Interim chairman David McLemore said the company would be focused in the coming year on consolidating efficiencies gained toward the end of 2012, while improving profitability and cash flow.
"The prospects for the global mining sector over the medium to long-term remain very strong. Boart Longyear’s strong diversification by region, commodity, product and service leaves us well leveraged to the long-term trends in this industry," he said.
Mr McLemore said conditions had stabilised across Boart's key markets and the revenue run-rate over 2013 would mirror the second half of 2012.
"We remain alert to an uptick in activity and with a leaner cost base, the company is positioned to respond rapidly and profitably to meet new demand as and when it emerges," he said.
"A key focus over the near term will be reviewing processes across the business leading to a cost and debt structure that is more resilient to down cycles."
Mr McLemore said Boart expected to extract more costs from the business in the first half of 2013.
Mr McLemore has served as Boart's interim chief executive since last October and chairman since August 2010.
Boar Longyear announces new CEO, chairman
Accompanying the release of its financial results, Boart Longyear announced the appointment of Richard O'Brien as president and chief executive officer.
Mr O'Brien is the replacement for former chief executive officer Craig Kipp who resigned in October last year as the company's share price languished.
His appointment will be effective from April 2013.
Mr O'Brien most recently served as the chief executive officer of US-listed Newmont Mining Corporation for six years, as well as being the company's chief financial officer prior to that.
Boart Longyear will also appoint Barbara Jeremiah as chairman to replace David McLemore, effective March 1, 2013.