...April 2, 2024 What we expect: Perenti's credit metrics will improve over fiscal 2024, due to continued double- digit growth across its operating divisions, new or extended contracts, and earnings from DDH1 Drilling Services. Accordingly, we expect Perenti will improve its fiscal 2024 company-defined net leverage to below 0.9x. This should translate to an S&P Global Ratings-adjusted gross debt- to-EBITDA ratio of about 1.5x. What to look for: Activity will ramp up across its mining contracts, given Perenti has front- loaded annual capital expenditure (capex) during the first half of fiscal 2024. We anticipate the accelerated activity will deliver increased earnings over the second half, ending June 30. Cash conversion should remain at about 90%, a level which the company has achieved historically. The company's disciplined adherence to its publicly stated leverage target of below 1.0x supports its financial profile. Why it matters: We consider Perenti's operations are exposed to the inherent...
