AKITA Drilling Ltd. ("AKITA" or the "Company") announces results for the nine months ended September 30, 2025.
The Company's net income increased to $1,545,000 in the third quarter of 2025, up 40% when compared to the same quarter of 2024. The increase in net income was driven by improved results in the Company's Canadian operating segment and lower selling and administrative expenses in the quarter. These improvements were partially offset by declining results in AKITA's US operating segment. The same factors influenced the Company's adjusted funds flow from operations, which increased to $9,272,000 in the third quarter of 2025 up from $8,435,000 in the same period of 2024. Net cash from operations decreased to $5,663,000 for the three months ended September 30, 2025, compared to $6,458,000 in the same period of 2024. This decrease was mainly due to the change in non-cash working capital, which increased to $1,146,000 in the third quarter of 2025, compared to a decrease of $1,175,000 in the third quarter of 2024. Capital expenditures increased to $8,832,000 in the third quarter of 2025, from $7,378,000 in the third quarter of 2024. In both periods, capital expenditures related to routine items. At September 30, 2025, AKITA's net debt balance was $27,814,000, down from $47,718,000 at September 30, 2024. During the quarter the Company repurchased and cancelled 84,366 Class A non-voting shares under its NCIB.
Colin Dease, AKITA's Chief Executive Officer stated: "The third quarter was challenging for the Company, with industry-wide activity in the US continuing to decline and several programs in Canada delayed. Looking ahead, the fourth quarter and early part of next year are expected to be very active for our Canadian fleet, while activity in our US fleet is not showing signs of recovery until the first quarter of 2026."
CONSOLIDATED FINANCIAL HIGHLIGHTS
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
$Thousands, except per share amounts
2025
2024
Change
%Change
2025
2024
Change
%Change
Revenue
44,604
45,828
(1,224)
(3 %)
159,264
130,469
28,795
22 %
Operating and maintenance expenses
34,006
35,727
(1,721)
(5 %)
117,669
99,044
18,625
19 %
Operating margin
10,598
10,101
497
5 %
41,595
31,425
10,170
32 %
Margin %
24 %
22 %
2 %
9 %
26 %
24 %
2 %
8 %
Net cash from operating activities
5,663
6,458
(795)
(12 %)
32,881
24,318
8,563
35 %
Adjusted fund flow from operations(1)
9,272
8,435
837
10 %
36,164
26,080
10,084
39 %
Per share
0.23
0.21
0.02
10 %
0.91
0.66
0.25
38 %
Net Income
1,545
1,106
439
40 %
12,474
3,254
9,220
283 %
Per share
0.04
0.03
0.01
33 %
0.31
0.08
0.23
288 %
Capital expenditures
8,832
7,378
1,454
20 %
23,449
18,439
5,010
27 %
Weighted average shares outstanding
39,731
39,734
(3)
(0 %)
39,733
39,728
5
0 %
Total assets
259,824
251,486
8,338
3 %
259,824
251,486
8,338
3 %
Total debt
39,674
55,551
(15,877)
(29 %)
39,674
55,551
(15,877)
(29 %)
(1) See "Non-GAAP and Supplementary Financial Measures" near the end of this release for further detail.
Canada
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
$Thousands, except per day amounts
2025
2024
Change
%Change
2025
2024
Change
%Change
Revenue Canada
18,217
14,842
3,375
23 %
52,766
40,211
12,555
31 %
Revenue from joint venture drilling rigs
10,530
11,038
(508)
(5 %)
31,637
33,185
(1,548)
(5 %)
Flow through charges(1)
(1,369)
(855)
