Capital Drilling lifts FY18 net profit

14th March 2019 By: Marleny Arnoldi - Creamer Media Online Writer

Capital Drilling lifts FY18 net profit

Aim-listed Capital Drilling achieved a 48% year-on-year increase in net profit to $7.7-million for 2018.

The company on Thursday declared a 2018 dividend of 1.5c, compared with 1.2c in 2017, on the back of a 16% year-on-year increase in earnings before interest, taxes, depreciation and amortisation to $28-million.

The company said 2018 was a record year for net cash generated, which helped to strengthen its balance sheet and its continued strategy for growth into West Africa.

“We believe the careful investments we made in 2018, both in terms of infrastructure and maintaining a high-quality fleet, will reap further benefits to all stakeholders over the current financial year,” said executive chairperson Jamie Boyton.

The company said its outlook for 2019 remains encouraging, albeit amid mixed market drivers – specifically supportive commodity markets, in particular gold, but offset by continued weak capital markets, which impacted on the company’s funding for exploration activity during 2018.

Capital Drilling exceeded its revenue guidance of between $105-million and $115-million for 2018, by generating revenue of $116-million.

It has adjusted its 2019 revenue guidance to between $110-million and $120-million.

Capital Drilling provides exploration and production drilling solutions to customers across the minerals industry. It has a particular interest in operating in emerging markets within Africa, Eastern Europe, Asia and Latin America.