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LONDON (Alliance News) - Capital Drilling Ltd on Thursday reported growth in revenue in the first half of 2016 and upgraded its full-year guidance after winning a drilling contract.
Shares in Capital were trading up 13% at 38.50 pence on Thursday morning following the announcement.
The drilling services company said revenue in the six months ended June 30 grew to USD41.1 million from USD39.0 million in the first half of 2015, thanks to increased activity at the Sukari open pit mine in Egypt.
Capital added that it has won an award for a four rig deep hole exploration directional drilling contract by RAKITA Exploration, a subsidiary of Nevsun Resources Ltd. Mobilisation has already commenced with two newly purchased deep hole rigs and two from within the existing fleet, with drilling expected to commence by July 30 and to complete by December 2017.
As a result of the contract win, Capital has uplifted its full-year revenue guidance to USD87.7 million.
Meanwhile, trading conditions continue to show positive signs of improvement, Capital said, with the New Acacia North Mara Blast Hole and Grade Control contract performing well.
"For the balance of 2016 we will continue to focus on: further geographic and underground expansion in emerging markets; building on our operational capability to ensure we are appropriately resourced to manage increasing activity levels; and diligently managing our costs," Chief Executive Mark Parsons said in a statement.
"We have a highly competitive operational model, diversified long-term contracts and a strong balance sheet - Capital remains confident that it can continue to leverage its position in what appears to be a sustainable upswing in our core markets," he added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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