• Quarterly revenue of $46.8m, EBITDA of $5.3m
• New projects starting to deliver earnings
• Operating rig count expected to increase in Q4
• Loop Decarbonisation business exceeding expectations

Mitchell Services Limited (ASX: MSV) has provided a quarterly investor update for the period ended 31 March 2025 (FY25 Q3). The company reported quarterly revenue of $46.8m and EBITDA of $5.3m, with the EBITDA figure mostly generated towards the end of the quarter as new projects started to deliver earnings and mobilisation costs reduced. The company's average operating rig count was 62.3, down 15% from the prior corresponding period, while the number of shifts worked declined 13% to 8,736. The lower operating cash flow performance was primarily driven by increased working capital requirements during the ramp-up phase. On a year-to-date basis, revenue was $146.2m and EBITDA was $18.0m. The company's Loop Decarbonisation business, a 50/50 joint venture with Talisman Partners, is progressing quicker than expected, with the first project exceeding expectations and a second project commencing. Looking ahead, the company expects the operating rig count to continue increasing in Q4 FY25, with approximately 45% of revenue coming from the gold sector. Shareholder returns are expected to recommence post the current transition period as the business normalises.

The company expects the operating rig count will continue to increase throughout FY25 Q4 such that the 1 July 2025 operating rig count will be on or around 70 rigs. The company also expects that shareholder returns will recommence post this FY25 period of transition and upon the performance of the business normalising.