Capital Drilling has reported its strongest third quarter since 2012 with revenues of $30.0m - up 26% on a year ago.
The group said its revenue results continued to reflect the cyclical recovery in demand providing positive demand support for the mineral drilling industry.
It added:'Revenue did however record a marginal decline on Q2 2017 (Q2: $30.7 million) due to the completion of drilling activities in Serbia, which contributed to rig utilisation of 52%, a 9% decrease to Q2 2017 (Q2: 57%).'
During the period the group acquired two additional underground rigs to support the newly awarded three year Syama underground drilling contract in Mali.
The group said it maintained a robust balance sheet, strong cash generation and a competitive operating model, placing it in a solid position to capitalise on the improving conditions.
Capital Drilling said it remained on track on its guidance for 2017.
Executive chairman Jamie Boyton said: 'Capital Drilling delivered a solid performance in Q3, with revenues up 26% compared to the same quarter in 2016.
'Cash generation remained strong enabling a reduction in gross debt, payment of the Group's interim dividend, in addition to payment of the outstanding cash consideration to earn 50% of A2 Global Ventures.
'Market conditions have continued with the positive momentum in 2017 and shown further signs of strength in this current quarter.'
At 8:22am: (LON:CAPD) Capital Drilling Ltd share price was -0.5p at 38.5p