Business
AKITA Drilling Ltd. Reports Higher Net Income and Funds Flow during Second Quarter of 2013
CALGARY , July 30, 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, July 30, 2013 /CNW/ - AKITA Drilling Ltd.'s net income for the\n three months ended June 30, 2013 was $2,757,000 ($0.15 per share) on\n revenue of $28,044,000 compared to $2,092,000 ($0.12 per share) on\n revenue of $35,959,000 for the corresponding period in 2012.  Funds\n flow from operations for the quarter ended June 30, 2013 was $9,121,000\n compared to $8,368,000 in the corresponding quarter in 2012. \n Commencing in 2013, the Company is reporting its financial results\n pursuant to a new accounting standard under International Financial\n Reporting Standards (\"IFRS\"), IFRS 11, whereby assets, liabilities,\n revenues and expenses of joint ventures are required to be reported on\n an equity accounting basis.  This adoption, which had no effect on net\n income, has resulted in a reduction of revenue amounts that would have\n been reported if the Company were allowed to continue to report using\n the proportionate consolidation basis.\n\n\nNet income for the six months ended June 30, 2013 was $15,252,000 ($0.85\n per share) on revenue of $88,805,000.  Comparative figures for 2012\n were net income of $15,996,000 ($0.89 per share) on revenue of\n $104,136,000.  Funds flow from operations for the January to June\n period in 2013 was $29,106,000 compared to $28,734,000 for the\n comparative period in 2012.\n\n\nWeaker markets conditions, particularly for conventional drilling rigs,\n as well as wetter than normal weather in June, were the two main\n influences that resulted in AKITA Drilling achieving fewer operating\n days in the second quarter of 2013 than in the corresponding quarter of\n 2012 (i.e., 1,017 compared to 1,161 in 2012).  However, the financial\n impact of this lower activity was more than offset by having stronger\n day rates due to the Company's high percentage of pad drilling rigs.\n\n\nIt appears that market conditions will be slower for the balance of the\n summer drilling season and perhaps the upcoming winter, especially for\n conventional drilling rigs.  However, management does not anticipate\n any adverse impact to its pad rig activity as a result of a generally\n weaker set of market conditions.  Further, during the third quarter,\n AKITA anticipates having a new pad rig commence operations on a\n multi-year project.\n\n\nIn the first quarter rep...