Business
AKITA Drilling Ltd. Announces Second Quarter Results
AKITA Drilling Ltd. Announces Second Quarter Results
About this update from Akita Drilling Ltd. Class A
[{"type":"text","content":"\n\n\n\n Jul. 30, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nCALGARY, July 30 /CNW/ - AKITA Drilling Ltd.'s net loss for the three months ended June 30, 2010 was $567,000 ($0.03 loss per share) on revenue of $19,357,000 compared to net earnings of $555,000 ($0.03 per share) on revenue of $17,881,000 in 2009. Funds flow from operations for the quarter ended June 30, 2010 was $3,758,000 compared to $2,750,000 in the corresponding quarter in 2009.\nEarnings for the six months ended June 30, 2010 were $448,000 ($0.02 per share) on revenue of $52,592,000. Comparative figures for 2009 were earnings of $4,463,000 ($0.24 per share) on revenue of $59,577,000. Funds flow from operations for the period was $10,824,000 compared to $14,801,000 in 2009.\nOperating statistics for the first six months of 2010 and 2009 are as follows:\n\n\n >\n\n\nDemand for rigs having certain capacities, particularly for heavy doubles and light triples increased during the second quarter. This increase in activity was offset by revenue rates that fell throughout most of last year and have not yet recovered to levels that were comparable to rates at the beginning of 2009. Consequently, earnings and funds flow are lower than comparative figures for 2009. Wet weather, particularly in June, delayed the start-up of a number of rigs until the third quarter. This also had an adverse impact on results.\nDemand for conventional (i.e. non-pad or specialized) rigs has improved, but remains far below supply. The categories of rigs that are most affected include deep (i.e. 5,000 metre plus capacities) and shallow (i.e. under 1,500 metre capacities), as these rigs typically drill for natural gas in conventional formations. As a result of low natural gas prices, limited opportunities for work are available.\nThe Company continues to receive inquiries about expanding its pad drilling capabilities. Earlier this year, AKITA retrofitted two of its smaller rigs (2,000 metre and 2,...