In
The impact of COVID-19 on demand for drilling services in
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CONSOLIDATED FINANCIAL HIGHLIGHTS
($Thousands except per share amounts) | For the three months ended | For the nine months ended | ||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |
Revenue | 18,849 | 42,610 | (23,761) | (56%) | 98,780 | 134,072 | (35,292) | (26%) |
Operating and maintenance expenses | 13,719 | 33,219 | (19,500) | (59%) | 75,785 | 102,091 | (26,306) | (26%) |
Operating income | 5,130 | 9,391 | (4,261) | (45%) | 22,995 | 31,981 | (8,986) | (28%) |
Margin % | 27% | 22% | 5 | 23% | 23% | 24% | (1) | (4%) |
Adjusted EBITDA(1) | 1,635 | 4,690 | (3,055) | (65%) | 16,265 | 16,992 | (727) | (4%) |
Per share | 0.04 | 0.12 | (0.08) | (67%) | 0.41 | 0.43 | (0.02) | (5%) |
Adjusted funds flow from operations(1) | (669) | 3,033 | (3,702) | (122%) | 11,583 | 12,333 | (750) | (6%) |
Per share | (0.02) | 0.08 | (0.10) | (125%) | 0.29 | 0.31 | (0.02) | (6%) |
Net loss | (8,203) | (5,397) | (2,806) | (52%) | (65,682) | (11,932) | (53,750) | (450%) |
Per share | (0.21) | (0.14) | (0.07) | (50%) | (1.66) | (0.30) | (1.36) | (453%) |
Capital expenditures | 742 | 3,301 | (2,559) | (78%) | 5,881 | 11,083 | (5,202) | (47%) |
Dividends declared | - | - | - | 0% | - | 6,734 | (6,734) | (100%) |
Weighted average shares outstanding | 39,608 | 39,608 | - | 0% | 39,608 | 39,608 | - | 0% |
Total assets | 278,072 | 376,877 | (98,805) | (26%) | 278,072 | 376,877 | (98,805) | (26%) |
Total debt | 74,252 | 82,318 | (8,066) | (10%) | 74,252 | 82,318 | (8,066) | (10%) |
(1) Non-GAAP Items |
OPERATIONAL HIGHLIGHTS
For the three months ended | For the nine months ended | |||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |
Operating days | ||||||||
134 | 338 | (204) | (60%) | 846 | 1,216 | (370) | (30%) | |
397 | 843 | (446) | (53%) | 2,048 | 2,991 | (943) | (32%) | |
Revenue per operating day(1) | ||||||||
38,881 | 37,601 | 1,280 | 3% | 34,132 | 32,935 | 1,197 | 4% | |
34,375 | 35,918 | (1,543) | (4%) | 36,588 | 32,401 | 4,187 | 13% | |
Operating and maintenance per operating day(1) | ||||||||
23,687 | 30,920 | (7,233) | (23%) | 25,246 | 24,718 | 528 | 2% | |
26,569 | 27,444 | (875) | (3%) | 28,548 | 24,818 | 3,730 | 15% | |
Utilization | ||||||||
7% | 16% | (9%) | (56%) | 13% | 19% | (6%) | (32%) | |
24% | 54% | (30%) | (56%) | 42% | 64% | (22%) | (34%) | |
(1) Non-GAAP items | ||||||||
(2) Includes AKITA's share of Joint Venture revenue and expenses. |
United States Drilling Division
Activity levels in the US appear to have reached a low point of the current cycle in the third quarter of 2020, bottoming out at 244 active rigs throughout the industry in August of 2020 and increasing from there. For AKITA, third quarter revenue declined by 55% to
The Company has four drilling rigs under contract, two active rigs contracted into the second quarter of 2021 and two rigs currently receiving standby revenue into the fourth quarter of 2021. The Company also currently has three rigs operating in the spot market and is anticipating this will increase as the market strengthens.
Canadian Drilling Division
The Canadian drilling industry has also been significantly impacted by the COVID-19 related pressure on oil demand. During the third quarter of 2020, AKITA achieved 134 operating days in
FURTHER INFORMATION
This news release shall be used as preparation for reading the full disclosure documents. AKITA's unaudited interim condensed consolidated financial statements and management's discussion and analysis for the quarter ended
NON-GAAP ITEMS
This news release references Non-GAAP (Generally Accepted Accounting Principles) items. Revenue per operating day, operating and maintenance expense per operating day, adjusted EBITDA and adjusted funds flow from operations are all considered Non-GAAP items. Management feels that these Non-GAAP items are useful in assessing the Company's performance. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies. For further information, see "Basis of Analysis in this MD&A and Non-GAAP Items" in AKITA's 2020 third quarter Management's Discussion & Analysis.
FORWARD-LOOKING INFORMATION:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions (including as may be affected by the COVID-19 pandemic), and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
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