Business
AKITA Drilling Ltd. Announces Record 2006 Earnings and Funds Flow
AKITA Drilling Ltd. Announces Record 2006 Earnings and Funds Flow.
About this update from Akita Drilling Ltd. Class A
[{"type":"text","content":"\n\n\n\nCALGARY, March 20 /CNW/ - Record earnings and funds flow and an active\nrig construction program highlighted AKITA's achievements for 2006.\n\n\nEarnings for the year ended December 31, 2006 were $33,755,000 or\n$1.83 per share on revenue of $174,543,000. Comparative figures for 2005 were\n$29,264,000 or $1.57 per share on revenue of $162,110,000. Funds flow from\noperations for the current year was $47,199,000 as compared to $42,421,000 in\n2005.\n\n\nMuch of the financial success in 2006 occurred in the first half of the\nyear. Demand for shallow capacity rigs, and to a lesser degree, deep drilling\nrigs, tapered off starting in the third quarter, primarily as a result of\nweakness in natural gas prices. Since demand for medium capacity rigs and\nheavy oil pad rigs is largely influenced by oil prices, demand for these types\nof equipment remained strong throughout the year. Drilling rig utilization was\n56.5% compared to the industry average of 55.1% and AKITA's utilization of\n59.3% in 2005.\n\n\nIn 2006, a 3,350 metre capacity rig was constructed for the Doyon Akita\nJoint Venture at a cost of $7,594,000 (net cost to AKITA) and commenced\noperations on a multi-year contract in Alaska.\n\n\nAt year-end, AKITA's fleet stood at 39 drilling rigs (35.575 net),\nincluding three drilling rigs (1.5 net) in Alaska. In addition, the Company\nhas three well servicing rigs (1.5 net), all of which operate in southern\nCanada.\n\n\nAKITA had three drilling rigs under construction throughout 2006. The\nfirst of these rigs, a shallow capacity rig, commenced operations in early\nJanuary of 2007. Two heavy oil pad rigs remain under construction and are\nexpected to be operational by the second quarter of 2007.\n\n\nIn October 2006, AKITA's board of directors approved the payment of an\nincreased quarterly dividend of $0.07 per share. This represents an increase\nof 16.7% calculated on an annual basis. During the year, the Company made\ndirect contributions to enhance shareowner value through purchases pursuant to\nits Normal Course Issuer Bid by repurchasing 257,400 Class A Non-Voting Shares\n(1.5% of the class) at an average price of $19.46 per share.\n\n\nSelected financial information for the Company is as follows:\n\n CONSOLIDATED BALANCE SHEETS\n (Dollars in thousands)\n\n----------------------------------------------------------...