8th Jul 2015 08:26
LONDON (Alliance News) - Capital Drilling Ltd on Wednesday said it expects its revenue in the first half to be sharply lower year-on-year amid continued challenges in the commodities market, but said it did see some improvement in the second quarter.
The company, which provides drilling services to the mining industry said it expects its revenue for the first half to the end of June to be USD38.8 million, down from USD53.8 million a year earlier. Second quarter revenue came in at USD19.7 million, down from USD27.7 million a year earlier but up from USD19.1 million in the first quarter, demonstrating signs that its revenue is beginning to stabilise.
Capital Drilling said trading conditions in the first half have continued to be challenging in the mining and mining services sector and said the tough trading in the first quarter had continued into the second.
But the company said it has secured a number of exploration and delineation contracts in the first half, including two deals in Tanzania, one in Botswana and one in Peru.
"After a significant and prolonged downturn in the mining sector over the past few years, Capital Drilling has demonstrated the resilience of its business model through delivering positive cash flow and achieving a net cash position during this period," said Chief Executive Mark Parsons.
Capital Drilling shares were down 1.6% to 27.80 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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