• 18% decrease in revenue to $99.4m
• 37% decrease in EBITDA to $12.7m
• Negative ROIC of 0.1% vs 15.1% in 1H24
• 57% decrease in operating cash flow to $10.6m
• Loss after tax of $0.3m vs $4.3m profit in 1H24

Mitchell Services Ltd (ASX: MSV) reported its 1H25 results, which were impacted by a temporary reduction in utilisation attributable to various factors including an underground fire event, mining industry corporate activity, and elevated rainfall events. The 1H25 period represented a transition phase with significant investment into newly won projects and service offerings, including entry into the PNG market and the highly specialist Surface to Inseam (SIS) market, as well as the faster than anticipated development of the decarbonisation opportunity. Revenue decreased 18% to $99.4m, EBITDA decreased 37% to $12.7m, and the company reported a negative ROIC of 0.1% compared to 15.1% in 1H24. Operating cash flow declined 57% to $10.6m, and the company reported a loss after tax of $0.3m compared to a $4.3m profit in the prior period. The company maintains a strong balance sheet with low debt levels, providing optionality to navigate the current market conditions and pursue growth opportunities.

The company's overall strategy is to optimise the long-term growth of the business and returns to shareholders by maintaining and improving the profitability of the existing business, identifying drilling opportunities offshore for existing clients, and identifying growth opportunities in the domestic mining and energy sectors to provide new services. The company will seek to optimise its capital allocation across dividends, buy-backs, growth, and debt management.