Drill contractor Capital Drilling (LON:CAPD) blamed a slump in mining exploration and the closure of operations for lower first quarter revenues.
First quarter utilisation was “particularly depressed” said chief executive Mark Parsons, though it did pick up three new contracts including a first in Botswana and revenue for the second quarter had improved “modestly” he said.
Parsons added Capital would still pay its maiden divided this year despite the lower revenues, which were US$19.1mln in the three months to March compared to US$26.1mln a year earlier.
Revenue per operating rig rose by 2.1% higher to US$ US$191,000 per month as operations in Papua New Guinea and the Solomon Islands were closed.
SP Angel said “Utilisation rates at 33% are low compared to the heights seen in 2008 of 84% although the trend is said to be improving.
"It is fortunate that the management team has paid down debt which gives them scope to manage against a weak background and also pay out a dividend. With the mining cycle bumping along the bottom there may be scope to grow from here.”
Shares were flat at 26p.