Trinidad Drilling Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company's revenue was $129,578,000 compared to $101,166,000 a year ago, due to higher base dayrates and higher activity levels in both of Trinidad's US and Canadian drilling divisions; partly offset by lower early termination and standby revenue recorded in 2018. Loss before income taxes was $21,553,000 compared to $20,796,000 a year ago. Net loss was $12,057,000 compared to $5,979,000 a year ago. Net loss attributable to shareholders of the company was $11,882,000 compared to $5,583,000 a year ago. Net loss increased in the second quarter of 2018 mainly due to higher depreciation and amortization expense due to a change in the useful life estimates in the third quarter of 2017 and a lower gain from investments in joint ventures recorded in the current year. Basic and diluted loss per share was $0.05 compared to $0.02 a year ago. Adjusted EBITDA was $32,977,000 compared to $14,655,000 a year ago. Capital expenditures were $7,142,000 compared to $35,386,000 a year ago. Funds flow was $30,761,000 compared to $10,517,000 a year ago. Basic and diluted funds flow per share was $0.11 compared to $0.04 a year ago. Increased activity and improving market dayrates recorded in each of Trinidad's Canadian and US drilling divisions in the current year improved operating income compared to the prior year.

For the six months, the company's revenue was $282,825,000 compared to $233,903,000 a year ago, due to higher base dayrates and higher activity levels in both of Trinidad's US and Canadian drilling divisions; partly offset by lower early termination and standby revenue recorded in 2018. Loss before income taxes was $53,735,000 compared to $45,740,000 a year ago. Net loss was $34,447,000 compared to $18,097,000 a year ago. Net loss attributable to shareholders of the company was $34,344,000 compared to $17,519,000 a year ago. Basic and diluted loss per share was $0.13 compared to $0.07 a year ago. Adjusted EBITDA was $70,837,000 compared to $65,914,000 a year ago. Cash flow provided by operating activities was $56,157,000 compared to $32,883,000 a year ago. Purchase of property and equipment was $23,156,000 compared to $58,558,000 a year ago. Purchase of intangibles was $1,663,000 compared to $3,145,000 a year ago. Net debt was $466,756,000. Total capital expenditures including TDI joint venture was $24,207,000 compared to $58,836,000 a year ago. Funds flow was $52,913,000 compared to $10,754,000 a year ago. Basic and diluted funds flow per share was $0.19 compared to $0.04 a year ago. In the three and six months ended June 30, 2018, industry conditions significantly improved compared to the prior year, driving higher operating days, higher dayrates and stronger operating income from the same periods last year.

In 2018, the company expects to spend approximately $114.3 million in capital expenditures, with $51.0 million in maintenance capital and $63.3 million in growth capital. In addition, Trinidad expects to spend $55.3 million (Trinidad's 60% share) in capital expenditures in the joint venture mainly related to deploying two rigs to Kuwait, as well as costs incurred to move one rig into Bahrain. Trinidad expects to fund its capital program through cash flow generated from operations and approximately $88.0 million of proceeds generated from the sale of assets, for a total net capital spend in 2018 of approximately $81.6 million.