Capital Drilling has strongest first half since 2013
Source - SMW
Capital Drilling's first half revenues rose to $62.3m - 49% up on a year ago and 21% higher than the previous six months.
The group said this was its strongest first half since 2013.
It said other financial highlights include:
- Improved fleet utilisation with Q2 utilisation of 57% and H1 utilisation of 56%.
- ARPOR H1 2017 ($191,000) up 9% on H1 2016 ($175,000). Q2 ARPOR of $186,000.
- Paid a final dividend of US1.0cps for 2016 financial year paid in May 2017.
- Maintained strong balance sheet, with closing H1 2017 net cash position of $3.4 million (31 December 2016: $0.6 million).
Executive chairman Jamie Boyton said: "We are pleased to report another solid quarter with Group Q2 revenue of $30.7 million.
"Revenue for the first half of $62.3 million represented a substantial 49% increase on H1 2016 with trading conditions generally continuing to be supportive into H2.
"While levels of tendering activity marginally declined in Q2, market conditions remain supportive, with continued supportive commodity prices and capital markets activities, particularly in gold and speciality metals.
"Capital Drilling was awarded two new long term contracts in Q2, specifically grade control drilling at the Tasiast Gold Mine in Mauritania (Kinross) and underground drilling at the Syama Mine in Mali (Resolute).
"These contracts expand upon our already established presence at these mines and add to the Company's portfolio of long term, mine site based drilling contracts.
"It is pleasing that we have increased the Company's cash position over the half year while maintaining returns to shareholders through dividends and investing in new contracts through capital expenditure.
"Recent legislative developments in Tanzania have however added an element of uncertainty as we enter the second half of the year.
"The changes were unexpected and the practical interpretation is at this stage unknown. We will continue to monitor developments closely and will update the market accordingly.
"For the balance of FY17 we will continue to focus on improved operational performance at existing contracts, the mobilisation and commencement of operations at Tasiast and Syama, along with diligent cost management and prudent discipline around Group capital expenditure.
"With our competitive operational model, diversified long-term contracts and a strong balance sheet, Capital Drilling remains confident that it can continue to leverage its position in our core markets."
At 8:00am: (LON:CAPD) Capital Drilling Ltd share price was +1p at 48p