Business
AKITA Drilling Ltd. increases funds flow during third quarter
CALGARY , Oct. 28, 2013 /CNW/ - AKITA Drilling Ltd.'s net income for the three months ende...
About this update from Akita Drilling Ltd. Class A
[{"type":"text","content":"\n\n\nCALGARY, Oct. 28, 2013 /CNW/ - AKITA Drilling Ltd.'s net income for the\n three months ended September 30, 2013 was $3,540,000 ($0.20 per share)\n on revenue of $32,945,000 compared to $4,331,000 ($0.24 per share) on\n revenue of $44,576,000 for the corresponding period in 2012.  Funds\n flow from operations for the quarter ended September 30, 2013 was\n $11,300,000 compared to $10,804,000 in the corresponding quarter in\n 2012.  Commencing in 2013, the Company is reporting its financial\n results pursuant to a new accounting standard under International\n Financial Reporting Standards (\"IFRS\"), IFRS 11, whereby assets,\n liabilities, revenues and expenses of joint ventures are required to be\n reported on an equity accounting basis.  This adoption, which had no\n effect on net income, has resulted in a reduction of revenue amounts\n that would have been reported if the Company were allowed to continue\n to report using the proportionate consolidation basis.\n\n\nNet income for the nine months ended September 30, 2013 was $18,793,000\n ($1.05 basic earnings per share/$1.04 diluted earnings per share) on\n revenue of $121,750,000.  Comparative figures for 2012 were net income\n of $20,327,000 ($1.13 per share) on revenue of $148,712,000.  Funds\n flow from operations for the January to September period in 2013 was\n $40,406,000 compared to $39,539,000 for the comparative period in 2012.\n\n\nRig activity declined during the third quarter of 2013 to 1,347\n operating days or 38.6% utilization compared to 1,529 operating days or\n 43.7% utilization during the corresponding quarter in 2012.  This\n decline was attributable to weak market conditions for conventional\n double and triple sized rigs.  However, AKITA's pad rigs continue to\n achieve strong utilization.\n\n\nDuring the third quarter, the Company completed the construction of and\n is currently operating its latest pad rig on a multi-year contract in\n the oil sands.  Additionally during the quarter, the Company entered\n into a multi-year contract to construct and operate a new ultra-deep\n pad rig for use in the Fort Liard Basin.  Construction on this latter\n rig has now commenced and is anticipated to be completed by mid-2014.\n\n\nIn addition to strong on-going pad drilling activity, the Company is\n currently recei...