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Capital Drilling says first quarter was ‘in line’ as strong performance continued

"Capital Drilling's trading performance in Q1 2019 was in line with expectations, with a continued strong performance from our key long-term contracts and a new exploration contract award in Burkina Faso”

drilling rigs
Capital Drilling ended the quarter with a fleet of 91 rigs

Capital Drilling Ltd (LON:CAPD) revealed a first quarter in-line-with expectations, and, highlighted a continued strong performance for key long-term contracts.

Revenue was reported at US$27mln, up 1.5% compared to the comparative quarter of 2018.

The drill contractor said that the average monthly revenue per operating rig improved by 1.1%, while the number of utilised rigs increased by 14% to 47 rigs, and the fleet utilisation rate was up by 18.2% at 52%. It ended the period with a fleet of 91 rigs.

WATCH: Capital Drilling highlights “a year of significant progress”

"Capital Drilling's trading performance in Q1 2019 was in line with expectations, with a continued strong performance from our key long-term contracts and a new exploration contract award in Burkina Faso,” said Jamie Boyton, executive chairman.

“Consistent with our continuous improvement drive, we also announced during the quarter the appointment of a chief operating officer, in addition to increasing our depth in the business development team.

“Our established operations have continued to perform strongly, enabling the group to declare an increased final dividend during the current period, whilst further strengthening a robust balance sheet.”

Looking ahead, the company highlighted that its long-term mining and production contracts continued to perform well over the period whilst noting ‘improved contract performance’.

It noted encouraging signs in the market helped by robust metals prices, particularly gold, as well as improving capital markets.

“The market for our services in Africa is reflected in the increase in the number of quality tenders which, along with our strong financial position, our increased regional presence and a modern and young fleet, places Capital Drilling on a platform for further growth," Boyton added.

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Price: 70.5 GBX

LSE:CAPD
Market: LSE
Market Cap: £96.57 m
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