Last checked at 17 Mar 2016 07:00
For Immediate Release | 17 March 2016 |
Capital Drilling Limited
("Capital Drilling", the "Group" or "the company"))
Full Year Results
For the period ended 31 December 2015
Capital Drilling Limited (CAPD:LN) The emerging and developing markets focused drilling company, today announces its full year results for the period ended 31 December 2015.
FULL YEAR FINANCIAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2015*
2015 $m | 2014 $m | |
Average Fleet Size (No. of drill rigs) | 97 | 96 |
Fleet Utilisation (%) | 34 | 43 |
ARPOR ($) | 188,000 | 188,000 |
Revenue |
78.7 |
98.8 |
EBITDA | 9.9 | 20.4 |
EBIT | (4.7) | 3.9 |
Net Loss Profit After Tax | (10.2) | (0.6) |
Cash generated from operating activities
Earnings per share Basic (cents) Diluted (cents) | 22.0
(7.6) (7.6) | 22.7
(0.4) (0.4) |
Final Dividend declared (cents) | 2.5 | 1.9 |
Net Asset Value per share (cents)
Return On Capital Employed (%) |
57.0
(4.6) |
67.6
3.3 |
Return on Total Assets (%) | (10.8) | 3.0 |
Net Cash (Debt) | 8.3 | (0.4) |
Net Cash / (Debt) to Equity (%) | 10.8 | (0.4) |
* All amounts are in USD unless otherwise stated
Financial Overview
§ Revenue down 20% to $78.7 million (2014: $98.8 million)
§ EBITDA down 52% to $9.9 million (2014: $20.4 million)
§ EBIT down to -$4.7 million (2014: $3.9 million)
§ Net Loss After Tax down to -$10.2 million (2014: $0.6 million) after $9.1 million of non-recurring charges
§ Net Operating Cash Flows of $22.0 million (2014: $22.7 million)
§ Gross debt of $10 million repaid in 2015 (2014: $6.2 million)
§ Aggregate maiden dividend of 3cps paid in 2015#
§ Net Cash of $8.3 million (2014: net Debt of $0.4 million)
§ Declared final 2015 dividend of 2.5cps ($3.4 million), a 32% increase on the 2014 final dividend
# consisting of a final dividend for the year ended 31 December 2014 of 1.9c per share paid on 8 May 2015 and an interim dividend for the six month period ended 30 June 2015 of 1.1c per share paid on 9 October 2015.
Operational & Strategic Overview
§ Retained and won core long term contracts:
» Acacia Mining - award to Dec 2019 for 5 rig blast hole & grade control contract at its North Mara Gold Mine, Tanzania
» Anglo Gold Ashanti - contract extension to 2020 at its Geita Gold Mine, Tanzania, including the addition of underground exploration services
» Centamin - contract extension to 2020 at its Sukari Gold Mine, Egypt
» Kinross - contract extension to Dec 2017 at its Tasiast Gold Mine, Mauritania
» Khoemacau - contract award and extension to Dec 2016 for Diamond and RC exploration in Botswana
» Lean Operations Model resulted in numerous exploration contracts in Peru, Botswana and Tanzania
§ World Class Achievement in 2015 for Lost Time Injuries (LTI's) include:
» Mauritania, Tasiast Project - 4 years LTI Free (March 2015)
» Tanzania, Geita Project - 8 years LTI Free (April 2015)
» Tanzania, North Mara Project - 1,000 days LTI Free (April 2015)
§ Average Revenue Per Operating Rig (ARPOR) of $188,000 (2014: $188,000) remained steady with the addition of the exploration activity resulting from the Lean Operating Model implementation
§ Lean Operations Model imbedded improvement through numerous exploration wins, while retaining margin
§ New management team fully entrenched
§ Relocation of the Company's Head Office from Singapore to Mauritius resulting in significant ongoing savings and improved efficiencies, which will be fully realised in 2016
§ Ongoing stringent discipline around cost management and capital spending reflected in positive Group cash flow
Management update
As previously announced, Mark Parsons, Chief Executive Officer, was appointed to the Board on 1 April 2015. It was also announced that Jaco Brümmer was appointed as Chief Financial Officer and commenced in April 2015.
Other management changes include the appointment of Supply Manager, Michele Butler. Ms. Butler has extensive industry and international experience. She is tasked with inventory management, improving efficiencies and further cost savings within the Group's supply chain.
Commenting on the results, Mark Parsons, CEO, said:
"Despite the significant softening of commodity prices and the subsequent headwinds suffered by the global mining industry in 2015, Capital Drilling further strengthened its balance sheet, generated positive free cash flow, and paid our first dividends since inception in 2004. The financial performance of Capital Drilling demonstrates our robust strategy of focusing on cash generation from our assets, a high quality and young fleet, and providing blue chip clients operating long life of mine assets with multi-year drilling contracts.
The business suffered a significant loss of a valued employee during 2015 with the tragic accident at the Sukari mine in Egypt. A thorough ICAM safety investigation was carried out and the tragic accident was attributed to rock fall. Every effort has been made by our Group to support the grieving family, friends and colleagues. The importance of workplace safety within our Group is the single most important aspect of our business - we will continue to foster this in our procedures, operations and culture.
The current year will see Capital Drilling return to revenue growth and profitability as we seek to further our market share in emerging markets, increase our suite of drilling services and enter into strategic partnerships. We believe that 2015 has built a strong platform to return our business to growth despite the ongoing challenges which our industry continues to face."
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To read the full press release, please click here.
Results Conference Call
Capital Drilling will host a conference call on Thursday 17 March at 09.00 am (London, UK time) to update investors and analysts on its results. Participants may join the call by dialling one of the following numbers, approximately 10 minutes before the start of the call. Participants may also wish to download the 2015 Results Presentation which is available by clicking here.
Dial in (UK): 0808 237 0040
International dial in: +44 (0) 203 428 1542
ID Number: 36049799#
For further information, please visit Capital Drilling's website www.capdrill.com or contact:
Capital Drilling Limited +230 464 3250
Jamie Boyton, Chairman investor@capdrill.com
Mark Parsons, Chief Executive Officer
finnCap +44 (0)20 7220 0500
Christopher Raggett, Corporate Finance
Joanna Scott/Tim Redfern, Corporate Broking
Buchanan +44 (0)20 7466 5000
Bobby Morse capitaldrilling@buchanan.uk.com
Helen Chan
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 94 drilling rigs with established operations in Botswana, Chile, Egypt, Ghana, Mauritania, Peru, Tanzania and Zambia. The Group's corporate headquarters is in Mauritius.
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