25th Aug 2015 07:41
LONDON (Alliance News) - Capital Drilling Ltd on Tuesday said it swung to a loss in the first half of 2015 on the back of a fall in revenue driven by the collapse in activity in the mining industry, as it fleet utilisation fell and its average revenue per rig declined.
The company, which provides drilling services to the mining industry, said its swung to a pretax loss of USD3.9 million in the first half to the end of June, compared to a USD1.8 million profit a year earlier.
Revenue for the group was down to USD39.0 million, compared to USD53.8 million a year earlier and down from the USD45.1 million it made in the second half of 2014, reflecting the ongoing challenges it faces from the downturn in activity in the mining sector. The group's fleet utilisation was down to 34% on an average fleet size of 97 rigs, compared to the 45% utilisation it had a year earlier from 95 rigs.
Average revenue per operating rig fell to USD189,000 from USD193,000, further exacerbating the hit the group has taken from declining activity levels.
Still, the company said it would pay a 1.9 cents per share dividend for the half, having not made a payout a year earlier.
Mark Parsons, Capital Drilling's chief executive, said the results showed the resilience of the business against the significant and prolonged downturn in the mining industry seen over the last five years. "We continue to maintain a conservative approach to capital expenditure and a rigorous approach to cost management and savings through all levels of the group," Parsons added.
Shares in Capital Drilling were untraded early Tuesday, having last traded at 22.31 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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