Business
AKITA Drilling Ltd. Announces First Quarter Earnings and Funds Flow
CALGARY, April 30, 2013 /CNW/ - AKITA Drilling Ltd.'s net earnings for the three months ended...
About this update from Akita Drilling Ltd. Class A
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, April 30, 2013 /CNW/ - AKITA Drilling Ltd.'s net earnings for\n the three months ended March 31, 2013 were $12,495,000 ($0.70 per\n share) on revenue of $60,761,000 compared to $13,904,000 ($0.77 per\n share) on revenue of $68,177,000 for the corresponding period in 2012. \n Funds flow from operations for the quarter ended March 31, 2013 was\n $19,985,000 compared to $20,366,000 in the corresponding quarter in\n 2012.  Commencing with this quarterly report, the Company is reporting\n its financial results pursuant to a new accounting standard under\n International Financial Reporting Standards (\"IFRS\"), IFRS 11, whereby\n assets, liabilities, revenues and expenses of joint ventures are\n required to be reported on an equity accounting basis.  This adoption,\n which had no effect on net income, has resulted in a reduction of\n revenue amounts that would have been reported if the Company were\n allowed to continue to report using the proportionate consolidation\n basis.\n\n\nDuring the three months ended March 31, 2013, weaker market conditions\n for conventional doubles and triples affected financial results through\n lower drilling activity.  The impact of lower conventional activity was\n partially mitigated by higher margins when considered on a \"per\n operating day\" basis and as a result of increased pad drilling.\n\n\nThe Company continues to maintain a strong financial position\n highlighted by its working capital of $41,892,000 coupled with an\n unused loan facility for $75,000,000.  AKITA's strong financial\n position gives it the flexibility to meet changing customer needs and\n take advantage of investment opportunities as they arise.\n\n\nFuture prospects for AKITA Drilling Ltd. remain generally positive. \n Most of the Company's 16 pad rigs are expected to drill through the\n break-up period and beyond.  The remaining pad rigs and most of the\n conventional rigs in the Company's fleet should re-commence drilling\n operations once road bans are removed.  Nevertheless, management\n anticipates lower demand for shallow rigs that are located in gas prone\n regions until the winter drilling season.  In addition to the\n anticipated demand for AKITA's existing rigs, the Company is bidding on\n the construction of several new custom rigs to meet specialize...