MONCTON, N.B. (CP) -- The Moncton-based global mine drilling services firm said its net earnings amounted to $1.11 per share and revenue of $178.2 million. It will pay an inaugural semi-annual dividend of 20 cents per share.
A year-ago, the company had net income of $18.9 million or 81 cents per share with $143.4 million in revenue.
"The company continues to show good progress in delivering strong top and bottom line performance," president and CEO Francis McGuire said in a statement.
"Overall margins showed very good improvement year-over-year despite continuing pressure on labour costs and African margins lagging behind other regions. Investment in training, crucial to our continuing growth, continued to weigh on margin growth."
The availability of crews to service its customers, "especially in Canada, the U.S. and Australia" is the company's largest challenge, McGuire said.
Payment of the company's debut dividend will be made Oct. 31 to shareholders of record as of Oct. 10, 2008.
"We are confident in the long-term outlook for specialized drilling, and confident in the company's ability to generate strong future cash flows," McGuire said.
"We expect future cash flows to be sufficient to sustain our growth plans and therefore we believe that it is appropriate to institute a semi-annual dividend
Major Drilling is one of the world's largest metals and minerals contract drilling service companies.
Its shares closed Tuesday at $33, down $2.30 or 6.5%, at the Toronto Stock Exchange.
(c) Canadian Press
