LONDON (Alliance News) - Capital Drilling Ltd Tuesday said it expects to report a large drop in its revenues and profits for 2013 following a significant decline in demand.
The emerging and developing markets drilling company said its preliminary net profit is expected to be USD1.9 million, down from USD14.1 million in 2012. Revenues are expected to have fallen 27% to USD116.3 million due to a significant decline in fleet utilisation as a number of clients reduced their drilling requirements, mainly in the second half of the year.
Capital Drilling has conducted a cost reduction programme due to the drop in demand for its products, reducing its employees by around 500 during the year to 834 members of staff and reducing its infrastructure in a number of countries, particularly in Latin America.
The company said that despite the poor results, it remains in robust financial and operational shape. It said the worsening in market conditions has been more moderate so far in 2014 than in 2013.
Capital Drilling shares were down 11.2% to 23.50 pence Tuesday.
The company said it will announce its full results for 2013 on March 18.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Capital (CAPD)