Capital Drilling net losses narrow

Capital Drilling posts an after-tax net loss of $4.8m for the year to the end of December - down from $10.2m last time.

Revenues rose by 19% to $93.4m and EBITDA increased by 32% to $13.1m.

The company said: "The minerals market has experienced improving conditions throughout 2016.

"The gold exploration segment in Capital Drilling's markets in particular has seen increasing capital and equity raisings by the Junior mining companies, together with increasing brownfield exploration at existing operations."

Capital Drilling said fourth quarter revenue was the highest for 24 months, with the Group continuing to achieve quarterly revenue growth throughout most of that period, with the exception of Q4 2015.

Rig utilisation for H2 2016 was 49% (H2 2015: 35%) and the average revenue per operating rig (ARPOR) was $178,000 (H2 2015: $188,000), on an average fleet size of 94 (H2 2015: 97).

Looking ahead, it said: "The improving market conditions are expected to continue, as evidenced by new contract activity across the sector.

"Improvements in the gold segment are also driving additional tendering opportunities with Capital Drilling's existing clients in its core markets.

"Positive market sentiment is evident as Junior mining companies continue to secure capital and raise equity, while existing brownfields projects are expanding exploration activity and moving open pit operations to underground mining."

At 8:11am: (LON:CAPD) Capital Drilling Ltd share price was +1p at 64.25p