Record profit growth for Boom Logistics

Australia's Boom Logistics reported a net profit for it 2012 fiscal year of AU$ 19.7 million (US$ 20.5 million), a turnaround from a net loss of AU$ 37.7 million (US$ 39 million) in 2011.

The crane logistics business achieved 8% revenue growth in the year, despite domestic market challenges, such as the closure of a significant customer mine site in the Bowen Basin.

Revenue from Boom's wet hire operations (crane and operator) increased by 16% and rigging labour hire revenue increased by 34%.

Brenden Mitchell, Boom chief executive, is confident the company's upturn will continue. "Boom achieved an impressive turnaround in FY12 and the strong improvement in our core operations provides the company with significant momentum heading into FY13," he said.

Ongoing projects expected to fuel continued growth include an AU$ 100 million (US$ 104 million) five-year contract for BHP Billiton's Olympic Dam and business expansion on the Gorgon LNG project.

Boom Logistics restructured its Boom Sherrin travel towers business in November at a cost of AU$ 1.2 million (US$ 1.25 million). The restructure resulted in the closure of six Boom Sherrin depots, with assets re-deployed to areas of greater demand and higher yield, said the company.

The benefits of the restructure were evident in the second half with earnings before interest expense and tax growing 17% compared with 2011 figures. Boom plans to continue investing in its travel tower assets in the 2013 financial year.