Business
AKITA Drilling Ltd. Announces 2007 Earnings and Funds Flow
CALGARY, March 20 /CNW/ - Earnings for the year ended December 31, 2007 were $20,752,000 or $1.14...
About this update from Akita Drilling Ltd. Class A
[{"type":"text","content":"\n\n\n\nCALGARY, March 20 /CNW/ - Earnings for the year ended December 31, 2007\nwere $20,752,000 or $1.14 per share on revenue of $142,945,000. Comparative\nfigures for 2006 were $33,755,000 or $1.83 per share on revenue of\n$174,543,000. Funds flow from operations for the current year was $36,992,000\nas compared to $47,199,000 in 2006.\n\n\nOverall, 2007 was the weakest year in terms of rig utilization rates for\nthe Canadian drilling industry since 2002 and AKITA's results were affected by\nthat weakness. The Company's rig utilization in 2007 was 40.9% compared to the\nindustry average of 37.0% and AKITA's utilization of 56.6% in 2006.\n\n\nDuring 2007, AKITA deployed three new drilling rigs into the market. The\nfirst rig was a 1,200 metre single that incorporated several features that\nwere new to AKITA's fleet, but which will be incorporated into any additional\nrigs that the Company may add in the future in a similar depth capacity.\nAlthough operations for this rig are not governed under a long-term contract\narrangement, it was able to generate 29% more operating days than the average\nAKITA rig in its depth range.\n\n\nIn addition to the new concept single rig noted above, AKITA completed\nthe construction of two new 3,000 metre pad-style drilling rigs suitable for\ndrilling heavy oil. The first pad-style drilling rig commenced its multi-year\nterm contract midway through the second quarter, while the other pad-style\ndrilling rig, which does not have a term contract associated with it,\ncommenced drilling operations in late August.\n\n\nIn light of current weaker market conditions, the Company does not have\nimmediate plans to increase its fleet size. AKITA remains poised, with the\nfinancial and other resources it has at its disposal, to respond to market\nopportunities, as they arise. At December 31, 2007 the Company had $49 Million\nin working capital, including $43 Million of cash and no long-term debt.\n\n\nFor the second year in a row, AKITA benefited from a reduction in future\nincome taxes as a result of government announcements for future income tax\nrates. The positive impact to earnings was $2,099,000 in 2007 compared to\n$1,943,000 in 2006.\n\n\nSelected financial information for the Company is as follows:\n\n\nConsolidated Balance Sheets\n\n----------------------------------------------------------------...