Akita Announces Third Quarter Results and the Continuation of its US Division Consolidation Plan

Source Press Release
Company Akita Drilling Ltd 
Tags Strategy - Upstream, Upstream Activities
Date October 30, 2019

AKITA Drilling Ltd. ("the Company") announces that its focus on consolidation of its US operations continues with four more drilling rigs moving to the Permian basin. This brings the Company's total rig count operating out of its Midland, Texas facility to ten rigs out of the Company's 17 rig US fleet.The third quarter of 2019 showed stronger results for the Company. Operating margin increased by 118%, up to $13,361,000 in the third quarter of 2019, from $6,120,000 in the same period of 2018. EBITDA improved significantly to $4,690,000 in the third quarter of 2019 up from a loss of $855,000 in the third quarter of 2018. Adjusted funds flow from operations was $3,076,000 in the third quarter of 2019 compared to $637,000 used in operations in the same period of the prior year. The Company's net loss decreased to $5,397,000 in the third quarter of 2019 from $5,459,000 in the third quarter of 2018. These significant improvements were driven by the number of rigs the company has located in the US (17) compared to the same time last year (four)1. In the US, demand for drilling services remains stronger than in Canada.In the third quarter of 2019, AKITA's fleet of 17 US-based rigs generated the majority of the Company's revenue, 70% up from 37% in the same period of 2018. Despite declining activity in the US, for both the industry and AKITA through the first three quarters of 2019, demand and activity in the US remain far stronger than in Canada.

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