Capital Drilling Ltd (LON:CAPD) boss Jamie Boyton has highlighted the group’s strong revenue and margin growth in 2017 as the company updated investors on its fourth quarter.
Quarterly revenue amounted to US$27.1mln for the three months to the end of December, representing a slight decrease from the US$27.8mln reported in the same period of last year. For the full year, revenue totalled US$119.4mln which represents a 28% increase from the preceding year.
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Significantly, the company returned to profitability following a four-year cyclical downturn.
“We have seen strong revenue and margin growth in 2017 despite the ongoing pressures and uncertainties of the Tanzanian mining sector, as well as some shorter-term contracts being completed during the period,” said Boyton, Capital Drilling's executive chairman in the company's trading update.
“We look forward to the year ahead with confidence due to a stronger underlying metals market as well as our geographic expansion particularly in West Africa, one of the most dynamic markets for drilling at the moment.
“The group will maintain its focus on cash generation and delivering a quality service to our strong customer base."
Capital Drilling finished the year with US$4.9mln of net cash.
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Looking ahead, Capital Drilling maintained its guidance for 2018 with the company anticipating between US$100mln and US$110mln for the year.
The company highlighted that its forecast is underpinned by long term contracts in Tanzania, Egypt, Mauritania and Mali. It does not, however, incorporate new business opportunities in the West African market.