Improved market conditions and contract wins helped Capital Drilling (LON:CAPD) post a 14% increase in revenue in its third quarter to October 25.
The firm provides specialised drilling services to miners and currently owns and operates a fleet of 96 rigs - 43% of which were used in the period, up from 34% in the same quarter last year.
Revenue came in at US$23.8nln, compared to US$20.8mln last year, while the interim dividend was lifted 36% to 1.5 US cents a share paid on October 7.
Among the contracts benefitting the period was from RAKITA Exploration, part of the giant Freeport McMoran, for four direcctional rigs in Serbia and from Ascom Mining for two diamond rigs
Last month, Capital also unveiled a new contract win with Acacia Mining Kenya, part of the African gold giant Acacia Mining (LON:ACA) for three diamond rigs.
Recent awards have come from Thani Stratex in Egypt, for one diamond rig, which has begun this month.
The firm said: "Capital Drilling has seen continuing improvements in market conditions with a number of new contracts commenced post the end of Q3 in addition to the new contracts secured in the quarter, helping to lift utilisation to 48% in October.
"As the end of the year approaches, utilisation is expected to remain stronger than recent periods, however levels will ease with the traditional industry shut down over the December and January period."
Mark Parsons, chief executive, added: "Pursuit of the group's growth strategy is on target, with assets currently being deployed to expand operations in the West African region. Encouragingly, we are also seeing an increase in underground activity at existing open cut mines, supporting our direction to increase the company's underground capabilities."
House broker finncap said the firm's current valuation offered strong appeal, currently trading on a multiple of just 3.8 for enterprise value to EBITDA, which "remains very attractive given the operational gearing to any increase in revenue and market recovery".
It repeated a 70p one-year price target, which offers significant upside. Shares are currently changing hands for 45p - up 0.56% on the day.