15th Jul 2020 14:26
(Alliance News) - Capital Ltd on Wednesday reported a 19% year-on-year rise in first half revenue and said that its core long-term contracts continue to perform strongly, with no material production interruptions due to the Covid-19 pandemic.
The company, which withdrew its 2020 guidance in March, added the impact of Covid-19 remains limited and the strengthening of gold price is a positive indicator for Capital. The company derives 90% of revenue from gold sector.
Covid-19 continues to provide a level of uncertainty but early indicators suggest there will be strong demand for drilling services following the completion of the West African wet season, Capital explained.
Capital Executive Chair Jamie Boyton said: "Capital has performed strongly in the first half of the year, despite the challenges presented by the global Covid-19 pandemic.
"There are some encouraging signs of improvement in the situation, with the resumption of smaller exploration projects and easing of some travel restrictions, and we remain prepared for any changes to the current situation."
For the six months to June-end, Capital recorded a 19% rise in revenue to USD65.1 million from USD54.8 million recorded a year ago. Fleet utilisation in the period increased 10% year-on-year to 57% due to capacity increases on existing operational sites.
The mining services company focused on the African markets said its second-quarter revenue was up 18% to USD32.6 million, with fleet utilisation rising 12% year-on-year to 58%.
Capital is scheduled to release its interim results on August 20.
Shares in the company were up 3.4% at 64.65 pence each on Wednesday afternoon in London.
By Greg Roxburgh; [email protected]
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