CEO quits as losses deepen at Boart Longyear
25 August 2015
Boart Longyear president & CEO Richard O’Brien is to leave the company following disappointing half-year results. The drilling equipment and services company’s revenues for the first half of 2015 were down -8.1% to US$ 388 million, while its net loss increased to US$ 152 million from US$ 142 million a year ago.
The company cited weak markets and falling prices for its Drilling Services division as key reasons for the worsening situation, although it said that its operational improvements particularly cost and productivity programmes had a favourable impact.
Mr O’Brien said, “Our markets will improve and when they do we expect the significant reductions and operational improvements we have implemented in recent years will yield significantly improved margins and cash generation.”
Revenues at Boart Longyear’s Products division, which makes drilling rigs, among other machines, were down -6.1% for the half year to US$ 106 million. Revenues at its Drilling Services business were down -8.8% to US$ 281 million.
The company said that although Mr O’Brien said he would leave the company, the date of his departure has not year been set, and that he would continue to lead Boart Longyear until this is decided. Chairman Marcus Randolph, will take a bigger role in running the company with immediate effect, as he becomes temporary executive chairman. Boart Longyear said it would be considering internal and external candidates for the CEO role.
Mr Randolph said, “Richard’s departure does not signal a significant change in the company’s priorities. He has assembled a talented, cohesive and committed management team with a deep understanding of the business and a clear set of objectives. The Board appreciates Richard’s assistance in transitioning his responsibilities.”