Capital Drilling revenues rise quarter-on-quarter

African-focussed drilling solutions company Capital Drilling saw revenue increase 4.5% on last quarter but, as its first half drew to a close, the firm fell short of a year-on-year improvement.

Capital's second-quarter revenues grew 4.5% to $26.6m due to the improved utilisation of the group's fleet of exploration rigs, however, revenues over the half were still down 4.6% on this time last year.

The group's revenues were in line with guidance and reflected Capital's continued efforts to redeploy idle rigs to the high growth West African markets.

Capital said it made "substantial progress" in increasing its presence in West Africa over the half, with the establishment of key infrastructure and significant asset mobilisations, the group had 26 rigs in Côte d'Ivoire, Mali and Mauritania at 30 June.

The company's long-term mining and production contracts continued to perform well over the period, with strong contract performance contributing $200,000 to Capital's revenues throughout the half.

Jamie Boyton, Capital's executive chairman, said, "The investment in building new operational centres in Côte d'Ivoire and Mali will provide infrastructure to deploy further production and exploration rigs, into what is regarded as one of the fastest growing drilling markets in the industry."

"With the announced new contracts due to start over the coming months, we expect to see our utilisation rate further increase over the second half, which fully underpins the investment we have made to target the West African market," added Boyton.

As of 0920 BST, Capital shares had grown 2.20% to 41.90p.