Capital Share Discussion Threads

[thorpematt] 02/5/2014 10:00

Indeed, gradually been ticking up. Quietly ticking through those resistance levels.

[chizgreen68] 01/5/2014 20:44

good day today

[koolio] 20/3/2014 00:38

The achievable revenue per drilled meter rate has been under downward pressure for some years now, Each project that comes to tender has a long lead time and plenty of competition from independent drilling companies, this forces the larger players to chase the harder projects for more demanding clients to maintain higher per meter rate and better margins. capdril represents value but there is an over supply of rigs in mining and construction at present.

The biggest risk for me was that the management walk the share price down to a snip and then take CAPD private again, they could re float in better times ahead and be very rich.

Good luck all holders, I,ll watch from the side lines for now.

[chizgreen68] 19/3/2014 21:16

I think these little beauties will come good. Eventually. One to hold and forget for now

[hedgehog 100] 19/3/2014 21:10

18/03/2014 07:00 UKREG Capital Drilling Limited Full Year Results

"Capital Drilling Limited (CAPD:LN), the emerging and developing markets focused drilling company, today announces its full year results for the period ended 31 December 2013.

FULL YEAR FINANCIAL RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2013*

2013 2012
$m $m

Average Fleet
Size 91 88
Fleet Utilisation
(%) 55 76
ARPOR ($) 179,000 192,000

Revenue 116.3 158.9
EBITDA 17.0 37.1
EBIT (0.2) 20.9
Net (Loss) Profit
After Tax (1.9) 14.1

Earnings per
share
Basic (cents) (1.4) 10.5
Diluted (cents) (1.4) 10.5

Net Asset Value
per share (cents) 68.0 69.2
Return On Capital
Employed (%) (0.2) 19.8
Return on Total
Assets (%) (0.2) 16.2
--------------------- -------- --------
Net Debt / Cash 9.0 20.0
Net Debt to
Equity (%) 9.9 21.4
--------------------- -------- --------

* All amounts are in USD unless otherwise stated

Financial Overview(1)
-- Revenue down 27% to $116.3 million (2012: $158.9 million)
-- EBITDA remained positive despite sharp decline in revenue
-- Breakeven EBIT result in the face of a sharp revenue decline
-- Net (Loss)/Profit After Tax down 113% to -$1.9 million (2012: $14.1 million)
-- Net Debt to equity ratio of 9.9% (2012: 21.4%) improved by 54%
-- Net Operating cash flows of $15.0 million

Operational Highlights
-- Robust Average Revenue Per Operating Rig (ARPOR) of $179,000 (2012: $192,000) despite declining utilisation rates and inconsistent drilling requirements
-- Strong operational performance leading to preferred contractor status at sites in Mauritania, Tanzania and Papua New Guinea

Continued strategic progress
-- Previously announced contract wins:
v New production drilling contract win with Geita (AngloGold Ashanti) announced in October 2013, in line with the Group's focus on long term mining contracts
v New production drilling contracts with St Barbara in Papua New Guinea and the Solomon Islands
-- New contract wins:
v Renewed 5 year production drilling contract at the Sukari Gold Mine (Centamin), running to 2018
v Contract renewal for diamond and reverse circulation drilling (4 rigs in total) for MMG Limited in Tanzania, commencing in the second quarter of 2014
-- Continued focus on disciplined capital expenditure with 2013 CAPEX of $5.7 million (versus $30.0 million in 2012)
-- Current fleet age of approximately 4 years provides one of the most modern drilling fleets in the market
-- Significantly improved gearing profile with gearing ratio of 9.9%, driven by strong cash generation

Commenting on the results, Jamie Boyton, Executive Chairman and CEO of Capital Drilling, said:

"2013 was a challenging year for the Group however management's focus on cost reductions coupled with discipline around capital expenditure led to solid cash generation over the period. The Group concluded 2013 with year-end net debt to equity ratio of 9.9% and given the substantial capital investment program in prior years the Company continues to own and operate the youngest scale fleet in the industry, with ample capacity to deploy assets when market conditions improve.

Critically the Company continued to execute on its stated strategy of increasing our exposure to production contracts, securing a comprehensive 5 year contract at the Geita Gold Mine in Tanzania. We are also pleased to today announce that we have successfully negotiated a new 5 year production contract at the Sukari Gold Mine in Egypt, running to 2018. Based on current forecasts the Group expects production contracts to contribute over 50% of revenue in 2014, providing greater stability to the platform as we continue to seek to grow the business.

While we have seen a recent increase in tender enquiries the environment remains challenging and competitive, with excess global rig capacity, subdued levels of equity market activity and a continued focus on free cash flow generation and capital discipline from mining companies. The Group remains well positioned in this environment with ample capacity in both the fleet and our balance sheet, along with a strong performance culture that will continue drive future opportunities." "

[sirhedgealot] 07/3/2014 16:57

My pet lizard likes foreign exchange trading, I say its speculative and difficult. She says the equity markets are too efficient these days.

[thorpematt] 07/3/2014 11:35

Yep that's exactly what my dog just did.

(He's likes to do the crossword)

[sirhedgealot] 07/3/2014 08:43

(See's price move up...smiles and goes back to news paper) 8-)

[chinahere] 05/3/2014 17:46

Yes, I have great hopes for this.

[valhamos] 05/3/2014 16:00

Share price is waking up ahead of results on 18 March.

[thorpematt] 28/1/2014 19:23

My musings FWIW:-


Not that surprised by the numbers.

negatives:
Really do not like the utilisation %.
Still seeing drop in ARPOR
Concerned that NAV is made up of un-utilised rigs

Positives
1.Good work on the operating overheads
2. Surprisingly strong cash-flow
3. Miraculous debt reduction given headwinds
Outlook...potentially

On the negatives: 1st 2 are market headwinds and will resolve in due-course, 3 is OK for the foreseeable especially given modern rigs.

Positives explain themselves really.

I definitely am awaiting the results for more depth, but my first reaction is that things look under control all be it as discussed, against a backdrop of market uncertainties.

[thorpematt] 28/1/2014 19:23

My musings FWIW:-


Not that surprised by the numbers.

negatives:
Really do not like the utilisation %.
Still seeing drop in ARPOR
Concerned that NAV is made up of un-utilised rigs

Positives
1.Good work on the operating overheads
2. Surprisingly strong cash-flow
3. Miraculous debt reduction given headwinds
Outlook...potentially

On the negatives: 1st 2 are market headwinds and will resolve in due-course, 3 is OK for the foreseeable especially given modern rigs.

Positives explain themselves really.

I definitely am awaiting the results for more depth, but my first reaction is that things look under control all be it as discussed, against a backdrop of market uncertainties.

[pugugly] 28/1/2014 17:30

drewz: sorry mate get real - Until significant increase in market requirement for the type of drilling offered by CAPD their revenue is not going anywhere. To quote yourself on the NCCL thread "Certainly a 'bottom drawer for 5 years' candidate, this one."


I was not trashing - Just expressing a considered opinion - as I see it -

If you check back posts you should see that with a limited number of exceptions I have been consistent.

There is a major downturn in this market - Just because I was able to see what was happening and acted on my opinion this does not mean I do not think there may be value here but share price still too rich (imo) unless there is a major upturn in the world economy. UBS world forecast for 2014 is only 3%, while a small improvement - This is still below trend. (Source Paul Donovan - Global Economist UBS)

[drewz] 28/1/2014 14:54

sebass - 10/10 for analysis.

PUGUGLY - 1/10, I/m afraid. Your agenda of 'I've sold the shares so I'll rubbish them with some spurious scary sounding commentary' was all too obvious. CAPD's future is no longer in their hands, indeed - what arrant nonsense!

[sebass] 28/1/2014 10:58

I think the market has got this wrong there is no bad news that was not flagged up before.

Q3 revenue-21.7
Q4 revenue- 21.8

Q3 utilisation-46%
Q4 utilisation-46%

Arpor Q3-$165000
Q4-$163000

Net debt/equity Q3-12.7%
Q4-9.9%

Net op cashflow for the year $15.3m gives H2 net op cash at $7.7m which seems pretty decent given how tough conditions have been.

I guess the only suprise was profit after tax loss of $1.9m but that must relate to large amount of depreciation amortisation and one off costs-Ebitda $17.08 Ebit -0.2.

I just don't see anything new that warrants the fall in the share price maybe people were expecting conditions to have improved more or for the outlook to be more positive. I think management holding so many shares mean they are going to run a tight ship and be very cautious.

[clementwether] 28/1/2014 10:13

This is a cyclical business and obviously the mining cycle isn't in a good place right now. CAPD has the capacity to pick up slack and previous announcements have commented that main capex is behind them (although the bit about capex for Geita is new, hopefully more details in full results) and any upturn should therefore add to a cash-flow which is already pretty good in the circumstances.

Not only half NAV, but using 30 June BS, current assets less all liabilities is £29m versus market cap today of £32m, so almost a net/net share in value investment terms. Possibly there already given further debt reduction. An outside bet for Simon Thompsons 2014 bargain portfolio in IC next week?

[deanowls] 28/1/2014 09:47

Nothing new in there for me and like others I can wait.

Debt down q4 better than q3 and with the new contracts to come, centamin still hanging over the share, reduced head count and the costs associated with that and debt still down.

Wait for a recovery.

[kinbasket] 28/1/2014 08:37

Not sure what people were expecting ?? Looks like a great update to me. We know business in this sector is bad, we know they are under utilised, we know profits will be losses but the key is will they survive.

Cash generation is strong and debt is massively reduced to the point it's almost irrelevant.

Looks like a well run business to me and should be around to make hay when drilling CAPEX starts to recover. At half NAV it's a cheap acquisition target for one of the bigger drillers.

Investors need to be patient which is a problem in todays markets but I can wait and have added a few on the dip.

[pugugly] 28/1/2014 08:29

Very poor, but very honest update:. Basically says they are running hard to keep solvent. They are now totally dependent on a significant recovery in the demand for minerals to increase the requirement for new drilling contacts.

Unless and until demand increases they will (imo) be going backwards as the fleet will be getting older. There will be (imo) very significantly increased cost pressures from competitors desperate to maintain utilisation of rigs so they will quote at cost (or even below) to keep going. [Very much like the print industry some years ago]

i do not take comfort from the ntav figure as what price 2nd hand rigs in an over supplied market.

Sorry for all still holding as CAPD's future is no longer in their own hands.

[sundance 13] 28/1/2014 08:21

Disappointed to see such a large drop, update not great but hardly unexpected and the company valuation reflects this already, or perhaps not judging by the fall today!

[thepopeofchillitown] 28/1/2014 08:13

Not a great update but they seem to be over worst now.

[chinahere] 06/1/2014 13:21

I agree they seem to be an open company with value in there at current prices. I like the IPO photo too: