Master Drilling has opted not to declare a year-end dividend, as the prospect of an escalating Iran conflict casts uncertainty over its outlook.
Even as the group reported steady earnings growth for the year ended December, it said that a dividend decision would be deferred until there was more certainty on how “current hostilities may unfold”.
“While the requirements for being able to pay a dividend are met, the significant global uncertainty caused by hostilities in various parts of the globe, including the recent outbreak of war between Iran and the US, and by the potential resultant responses of various countries to these situations, makes it advisable to defer a dividend decision,” Master Drilling said on Tuesday.
The company added that it might provide a special dividend in the future once the dust settles, rather than a normally scheduled dividend.
Master Drilling, which listed on the JSE in 2012, is a R2.7bn investment holding company whose subsidiaries provide drilling services to the mining and construction sectors.
The group reported full-year revenue climbed 7.8% to a record $292m (about R5bn), while HEPSe edged up 1.4% to 329c.
The firm said it had reaped the rewards of significant capex investment over the past years, leading to a profitable year. In South Africa, it reported particularly strong financial growth, benefiting from the mining sector’s uptick in operations amid soaring commodity prices.
It reported an expanded service portfolio, including new piling services and a robust operational performance in major mining projects.
In 2026, the group hopes to focus on gold, copper and critical minerals, as demand and investment into these commodities remain strong. To hold and gain further market share, it is focused on investing in the technologies which allow for automation and remote-drilling.
“The pipeline as of December 31 2025 totalled $997.8m, while the committed order book stood at $371.4m for 2026 and beyond,” it said.
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