Capital Drilling has the bit between its teeth

published 19 March 2012

Emerging markets-focused drilling company Capital Drilling had a record 2011 on the back of contract wins with blue-chip clients such as BHP Billiton, Centamin and Barrick Gold.

Its first full year as a listed company saw revenue surge to $130.5m from $75.3m the year before, as the company increased the number of rigs in its fleet. The fleet expanded by 15% to 85 rigs during the course of the year, with the average fleet size for the whole of the year coming in at 78.

Utilisation averaged 82% in 2011, with the revenue per operating rig averaging $158,000 in 2011.

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"The current year has seen a strengthening in demand for quality drilling services, and this continues to translate into high rates of rig utilisation and solid earnings visibility for the year ahead," the company statement said.

"We do, however, remain ever mindful of the global economic environment, particularly the recent moderation of growth in the key emerging markets of China, Brazil and India. As such, the group continues its disciplined focus on well capitalised customers with low cost production and long life of mine assets," stressed Executive Chairman Jamie Boyton.

Profit before tax climbed to $21.7m from $12.9m in 2010. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $34.0m in 2011 from an adjusted $19.8m in 2010 while EBIT climbed to $22.8m from ad ajusted $14.1m in 2010.

Diluted earnings per share rose 45% to 13 from 9 cents in 2010. The company does not pay dividends.

The share price rose to 89p in early trading on the morning of the results.