TIDMCAPD
RNS Number : 5398W
Capital Drilling Limited
18 April 2019
For Immediate Release 18 April 2019
Capital Drilling Limited
("Capital Drilling", the "Group" or the "Company")
Q1 Trading Update
Capital Drilling Limited (CAPD: LN), a leading drilling
solutions company focused on the African markets, today provides
its Q1 2019 trading update for the period ended 31 March 2019 (the
"Period").
FIRST QUARTER (Q1) 2019 KEY METRICS
Q1 2019 Q1 2018 Q4 2018 % change % change
from from
Q1 2018 Q4 2018
-------------------- --------- --------- --------- ---------- ----------
Revenue (US$m) 27.0 26.6 30.5 1.5% -11.5%
-------------------- --------- --------- --------- ---------- ----------
ARPOR*(US$) 183,000 205,000 181,000 -10.7% 1.1%
-------------------- --------- --------- --------- ---------- ----------
Average utilised
rigs 47 41 54 14.6% -13.0%
-------------------- --------- --------- --------- ---------- ----------
Fleet Utilisation
(%) 52 44 59 18.2% -11.9%
-------------------- --------- --------- --------- ---------- ----------
Average Fleet 91 93 91 -2.2% 0.0%
-------------------- --------- --------- --------- ---------- ----------
Closing fleet
size 91 93 91 -2.2% 0.0%
-------------------- --------- --------- --------- ---------- ----------
* Average monthly revenue per operating rig
Financial Highlights
-- Revenue US$27.0 million, a 1.5% increase on Q1 2018 (US$26.6
million) and in line with guidance
-- Average monthly revenue per operating rig ("ARPOR") increased
1.1% (US$183,000) on Q4 2018 (US$181,000) and decreased 10.7% on Q1
2018 (US$205,000)
-- Declared a final dividend of US1.5 cps for 2018 financial
year, up 25% on financial year 2017 (US1.2 cps), payable on May 3,
2019
-- Maintained strong balance sheet, with period end net cash
position of US$10.8 million (March 2018: US$3.1 million)
-- Company continues to be well positioned for anticipated
uplift in demand, especially in West Africa
Operational Highlights
-- 2019 ARPOR increasing as contracts recommence in 2019, with March 2019 ARPOR of US$197,000
-- Continued solid contract performance across key contracts, as
acknowledged by the increase in profitability over the period
-- Increase in fleet utilisation to 52% (Q1 2018: 44%)
reflecting the Group's ongoing success in securing contracts with
new and existing clients
-- Further growth in West Africa, through the award of our first
contract in Burkina Faso, a 20,000-metre exploration drilling
programme with Golden Rim Resources commencing in April 2019
-- Appointment of Jodie North as Chief Operating Officer
-- Continued outstanding safety performance, maintaining zero LTI's company-wide in Q1 2019
-- Achieved a number of world class safety records including:
- North Mara Gold Mine (Tanzania) achieved three years LTI free in March
- Sukari Gold Mine (Egypt) achieved two years LTI free in January
- Geita Gold Mine (Tanzania) achieved two years LTI free in March
Trading Update and Outlook
Capital Drilling generated revenue of US$27.0 million during Q1
2019, representing an increase of 1.5% on the comparative period
(Q1 2018: US$26.6 million). Revenue decreased by 11.5% on Q4 2018
(US$30.5 million) due to first quarter seasonal impacts. ARPOR
increased 1.1% (US$183,000) over Q4 2018 (US$181,000). The revenue
results are in line with Company guidance of US$110 to US$120
million.
The Company's long-term mining and production contracts
continued to perform well over the period, with improved contract
performance contributing to an increase in profitability over the
previous corresponding period. We continue to see robust tendering
activity in West Africa and remain confident of further contract
wins in the region in the coming months. At this early stage of the
year we have already seen some encouraging signs in the market,
with robust metals prices, particularly gold, and improving capital
markets. There remains a fundamental requirement from the mining
industry to replace resources and reserves depleted during the
downturn, when exploration drilling was significantly reduced due
to budgetary constraints.
As previously announced, the Board of Directors declared a final
dividend for the 2018 period of US1.5cps (US$2.04 million), payable
on 3 May 2019.
Commenting on the trading update, Jamie Boyton, Executive
Chairman, said:
"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. We continued our strong safety performance across our
portfolio and are pleased to have achieved a number of world class
safety records including a further quarter of zero LTI's.
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. 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."
For further information, please visit Capital Drilling's website
www.capdrill.com or contact:
Capital Drilling Limited +230 464 3250
Jamie Boyton, Executive Chairman investor@capdrill.com
André Koekemoer, Chief Financial Officer
Peel Hunt LLP +44 20 7418 8900
Ross Allister
James Bavister
Tamesis Partners LLP +44 20 3882 2868
Charlie Bendon
Richard Greenfield
Buchanan +44 20 7466 5000
Bobby Morse capitaldrilling@buchanan.uk.com
James Husband
About Capital Drilling
Capital Drilling provides specialised drilling services to
mineral exploration and mining companies in emerging and developing
markets, for exploration, development and production stage
projects. The Company currently owns and operates a fleet of 91
drilling rigs with established operations in Botswana, Côte
d'Ivoire, Egypt, Kenya, Mali, Mauritania and Tanzania. The Group's
corporate headquarters are in Mauritius.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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