Boart Longyear Limited (ASX: BLY), the world’s leading provider of drilling services and products for the mining industry, today announces its financial results for the first six months ending 30 June 2012, reporting strong growth and a 33% increase in interim dividend to 6.4 US cents per share. In light of continued uncertainty in global markets, the Company has made a revision to revenue and EBITDA guidance for the full year.

Results Summary

First Half 2012:

• Revenue US$1,099 million; up 15% versus first half 2011
• EBITDA US$208 million; up 26% versus first half 2011
• NPAT of US$98 million; up 32% versus first half 2011
• Earnings per share of 21.5 US cents; up 32% versus first half 2011
• Interim dividend of 6.4 US cents per share; up 33% versus 2011 interim dividend

Boart Longyear CEO, Craig Kipp, commented, “We had another record reporting period for Boart Longyear during the first half of 2012. Our performance was driven by strong industry fundamentals and our organic growth strategy that is centered on expansion in emerging markets, mine water services and multiple new product launches. Given their positive impact on our results through industry cycles, these initiatives will continue to underscore our operations.”

Boart Longyear’s 2012 first half results reflect strong organic growth and EBITDA in its Drilling Services business and smaller growth in the Products business. Demand remained strong in Africa and Latin America. Rig sales for the Products business were up, and, per plan, rig utilisation for Drilling Services remained between 70-75% during the first half of 2012.

Total revenue for the first half of 2012 was US$1,099 million, an increase of 15% compared to US$959 million for the first half of 2011. Total EBITDA for the half year was US$208 million, an increase of 26% over the same period last year.

The Drilling Services division generated US$177 million in EBITDA, up 37% over the same period in 2011. The Products division generated US$68 million in EBITDA, up 2% over the same time period in 2011.

Cash from operations was US$24 million compared to US$22 million in the same period last year. Net debt increased by US$106 million to fund working capital, while operating cash was used to fund investment and dividends, as planned. The Company also increased the aggregate principal amount of its revolving debt facility to US$350 million from US$250 million. The increase to the revolver, which remains undrawn, was possible at attractive rates and was taken as a precautionary and opportunistic measure.

Dividend

Earnings per share for the first half of 2012 were 21.5 US cents, up 32% from the same period last year. An interim dividend of 6.4 US cents per share has been determined, representing 30% of net profit after tax for the first half. The first half dividend will be 15% franked and is expected to be paid on 10 October 2012 to shareholders of record on 10 September 2012.

Outlook

Revised Full Year 2012 Guidance:

• Forecast revenue in the region of US$2 billion
• Forecast EBITDA of approximately US$360 – US$390 million
• Forecast CAPEX of US$275 million, down 8% from original guidance

Given industry and macro-economic developments since the start of the second half of 2012, the Company is revising its 2012 full-year guidance for revenue and EBITDA. Boart Longyear’s exploration market indicators are mixed and the Company’s visibility is being impacted by conditions that vary by business, region, customer and project. Considerable work undertaken in recent years to variabalise the Company’s cost base, particularly in Products, will help ensure the Company is prepared for any short-term downturn in demand.

Mr. Kipp added, “We are seeing a mining industry in a state of flux. Global uncertainties like the European debt, decreasing growth in China, restrictive financing conditions, and the upcoming US elections are driving our mining customers to be more cautious with their capital and direct it to their higher quality assets.

“Against these uncertainties, commodity prices remain historically strong and inventories are relatively low. Our customers generally remain very profitable and have strong balance sheets. In some cases, we are seeing expanding demand at certain sites, especially in regions with lower labour costs, supportive governments and favourable logistics.

“Given mixed market conditions, our visibility beyond the near term is very limited. As a result, we have updated our key assumptions for utilisation, backlog, sales, and pricing for the second half of 2012. These changes result in a revision of our guidance for full year 2012, resulting in revenue and EBIDTA estimates that are more in line with our 2011 results.

“Despite some uncertain market dynamics, we are extremely well positioned for the future. Given the strength of our customer relationships, innovative products and services, and operational programs we are able to respond quickly to any changes in market conditions.

“Overall, we remain very optimistic about the long-term fundamentals for the business and our growth prospects for the industry.”

About Boart Longyear

With over 120 years of expertise, Boart Longyear is the world’s leading provider of drilling services and products for the mining industry. It also has a substantial drilling and products presence in mine de-watering, environmental sampling, energy and oil sands exploration.

Boart Longyear is a global company headquartered in Salt Lake City, Utah, USA, and is listed on the Australian Securities Exchange (ASX: BLY) in Sydney, Australia. Sales in 2012 were over US$2.0 billion, and the company employs over 10,000 employees worldwide. Contract drilling services are conducted in over 40 countries, and exploration products are manufactured in seven global factories and sold to customers in over 100 countries.

Boart Longyear was a private company for over 85 years. In 1975, it was purchased by Anglo American which was headquartered in Johannesburg, South Africa. Then in 2005, Private equity purchased Boart Longyear from Anglo American and subsequently listed the company on the ASX in April of 2007.

More information about Boart Longyear can be found on the Internet at www.BoartLongyear.com