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(Alliance News) - Capital Drilling Ltd on Thursday reported a rise in revenue but the figure per drilling rig has fallen, as clients look to increase expenditure.
Revenue in the last quarter of 2019 was USD30.7 million, 4.8% higher than the third quarter. Average revenue per month per rig, or ARPOR, was 4.0% lower at USD167,000, however.
The average number of rigs in use in the quarter was up 15% on the third quarter at 55, with fleet utilisation improving to 59% from 52%. The size of the fleet was 95 rigs, up from 92 the third quarter.
This fourth quarter utilisation figure of 59%, Mauritius-based Capital Drilling said, was the equal-best quarterly result in four years.
For 2019, revenue has dipped 1.0% to USD114.8 million, with ARPOR down 9.3% at USD176,000. The average number of rigs in use in the year rose 6.4% to 50 and fleet utilisation improved to 54 from 51.
Capital Drilling said the revenue figure for 2019 was in line with guidance of between USD110 million and USD120 million.
Some of the company's clients include Barrick Gold Corp, Centamin PLC, Resolute Mining Ltd, and Acacia Mining, which is now part of Barrick but used to be listed in London.
"We experienced another strong year during 2019. The company continued its transition into mining services at the Bonikro mine site with the first of the new mining equipment delivered during the fourth quarter. We also saw continued high levels of activity as eight new exploration contracts commenced during the period, primarily in West Africa," said Executive Chair Jamie Boyton.
Looking forward, Capital Drilling said a stronger gold price is a good sign for the company, with some 90% of its work in the gold mining sector. This stronger market will lead to greater exploration expense by clients.
The firm will also continue with a plan to move drilling rigs into west Africa from the rest of the continent, as west African mining expands.
Shares were 9.0% lower on Thursday in London at a price of 57.80 pence each.
By George Collard; georgecollard@alliancenews.com
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