AKITA announces third quarter results and net income of $1.1 million for the quarter
CALGARY, AB , Nov. 4, 2024 /CNW/ - AKITA Drilling Ltd. (TSX:AKT)
AKITA Drilling Ltd. ("AKITA" or the "Company") announces results for the nine months ended September 30, 2024.
The Company's net income decreased to $1,106,000 in the third quarter of 2024 from $3,880,000 during the same period of 2023. Adjusted funds flow from operations decreased to $8,435,000 in the third quarter of 2024, from $10,566,000 in the same period of 2023. Results in the third quarter of 2024 were down compared to the same period of 2023 due to reduced operating margin per day in the Company's Canadian division due to rig mix and reduced activity in the US division.
Net cash from operations increased to $6,458,000 for the three months ended September 30, 2024, compared to $2,308,000 in the same period of 2023, due to the positive change in non-cash working capital. Total debt decreased to $55,551,000 at the end of the third quarter of 2024 from $79,223,000 at the same time in 2023.
In contrast to the continuing decrease in the US industry active rig count, AKITA's US active rig count increased through the quarter, from 8 rigs at the start of July to 12 active rigs at the end of September, equivalent to 80% utilization compared to a utilization rate of 40% for the industry as a whole at the end of the quarter. A similar increase occurred in Canada where AKITA's active rig count increased from 9 rigs at the start of the quarter to 12 rigs at the end of the quarter, equivalent to 71% utilization compared to 57% in the Canadian industry at quarter end.
Colin Dease, AKITA's Chief Executive Officer stated: "We are extremely proud of the debt repayment we have achieved year to date and of our success in reactivating rigs in the US despite challenging market conditions. With 12 active rigs in each division, our activity is now strong and balanced between Canada and the US, and we anticipate a strong fourth quarter for the Company."
CONSOLIDATED FINANCIAL HIGHLIGHTS
($Thousands except per share amounts)
For the three months ended September 30,
For the nine months ended September 30,
2024
2023
Change
% Change
2024
2023
Change
% Change
Revenue
45,828
54,813
(8,985)
(16 %)
130,469
178,162
(47,693)
(27 %)
Operating and maintenance expenses
35,727
41,387
(5,660)
(14 %)
99,044
128,801
(29,757)
(23 %)
Operating margin
10,101
13,426
(3,325)
(25 %)
31,425
49,361
(17,936)
(36 %)
Margin %
22 %
24 %
(2 %)
(8 %)
24 %
28 %
(4 %)
(14 %)
Net cash from operating activities
6,458
2,308
4,150
180 %
24,318
18,044
6,274
35 %
Adjusted funds flow from operations(1)
8,435
10,566
(2,131)
(20 %)
26,080
38,346
(12,266)
(32 %)
Per share
0.21
0.27
(0.06)
(22 %)
0.66
0.97
(0.31)
(32 %)
Net income (loss)
1,106
3,880
(2,774)
(71 %)
3,254
19,580
(16,326)
(83 %)
Per share
0.03
0.10
(0.07)
(70 %)
0.08
0.49
(0.41)
(84 %)
Capital expenditures
7,378
4,566
2,812
62 %
18,439
11,770
6,669
57 %
Weighted average shares outstanding
39,734
39,650
84
0 %
39,728
39,650
78
0 %
Total assets
251,486
267,061
(15,575)
(6 %)
251,486
267,061
(15,575)
(6 %)
Total debt
55,551
79,223
(23,672)
(30 %)
55,551
79,223
(23,672)
(30 %)
(1) See "Non-GAAP and Supplementary Financial Measures" near the end of this release for further detail.
Canadian Drilling Division
$Thousands except per day amounts
2024
2023
Change
% Change
2024
2023
Change
% Change
Revenue Canada
14,842
15,104
(262)
