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Capital Drilling Cuts Dividend As Annual Revenue Falls

19th Mar 2020 11:31

(Alliance News) - Mining services firm Capital Drilling Ltd on Thursday cut its dividend by a third and said its full-year revenue edged lower.

In 2019, revenue slipped 1.0% to USD114.8 million from USD116.0 million. Pretax profit however, rose 16% to USD14.6 million from USD12.6 million. Finance charges fell 15% to USD891,750 and its share of losses from an associate fell 74% to USD227,904.

Capital Drilling cut its final dividend by 53% 0.7 cent per share from 1.5 cents per share. The full-year payout was trimmed by 33% to 1.4 cents from 2.1 cents.

Its average number of drill rigs dipped to 92 from 93, though utlisation rose to 54% from 51%.

"The performance of Capital Drilling in 2019 was one of significant progress on a number of key aspects of our growth strategy, which saw rig utilisation increase to a four year high, a broadening of our services into load and haul, significant investment into our fleet and operations, and a further consolidation of our leading position in the rapidly growing West African market," Capital Drilling said.

Shares in the company were 9.4% lower at 29.90 pence each in London on Thursday morning.

By Eric Cunha; [email protected]

Copyright 2020 Alliance News Limited. All Rights Reserved.


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