• Quarterly revenue of $46.7m, EBITDA of $5.6m
• Mobilisation activities increase for new work starting in Q3
• Strong balance sheet with net debt of $6.2m

Mitchell Services Limited (ASX: MSV) has provided a quarterly investor update for the quarter ended 31 December 2024 (FY25 Q2). The company experienced a temporary reduction in utilisation levels, with the rig count dropping to 61 in August 2024 before steadily increasing to 66 in November 2024. This, along with the costs associated with ramp-up and mobilisation activities, impacted revenue and EBITDA, which were both lower than the corresponding quarter in the previous financial year. Key factors driving the softer result include accelerated mobilisation costs for the company's entry into the PNG market, where drilling is expected to commence in February, and the faster-than-anticipated progress of the Loop Decarbonisation Solutions joint venture, which is also expected to commence drilling in early February. Despite the transition period, the company maintains a strong balance sheet with net debt of $6.2m and is optimistic about long-term growth opportunities, including expanding its service offerings in the domestic mining sector and identifying offshore drilling opportunities for existing clients.

The company expects the operating rig count to continue increasing into FY25 Q3 as rigs are deployed across recently awarded jobs. The company remains committed to its current capital management policy, including an ongoing on-market share buyback.