LONDON (ShareCast) - Capital Drilling, the emerging and developing markets drilling company, has reported record first half revenues of $59.5m, up 107% on a like-for-like basis compared to last year.

Earnings before interest, tax, depreciation and amortisation increased by 127.8% to $16.3m, but cash was down by 30% to $12.8m (2010: $18.2m).

Executive chairman, Jamie Boyton, said: "All key metrics showed strong improvement over the previous corresponding period with utilisation back near peak levels and ARPOR [Average Revenue Per Operating Rig] running at levels last seen in 2008. The results are particularly pleasing given the significant headwinds the group experienced in relation to adverse currency movements and the tightening labour market.

"The first half of the year saw some significant milestones achieved for the group, including our first contracts with global majors BHP Billiton (in Chile and Ethiopia) and Rio Tinto (through their acquisition of Riversdale in Mozambique). New contract wins with Kinross and BHP Billiton will see us further expand our geographic foot print in Africa, with operations commencing in Ghana and Ethiopia in Q3 2011.

Pre-tax profit was up to $10.6m from $4.6m the previous year, while post-tax profit for the period more than doubled to $8.6m from $3.5m last year.

"Market conditions have continued to be very supportive with requests for tenders consistent with record levels last seen in 2008," continued Boyton.

"Commodity prices have continued their strong performance during the period despite recent market volatility and capital markets activity has continued at elevated levels.

"We are encouraged by increasing activity and are on track to meet earnings expectations for the full year."

The share price was up 0.87% to 86.75p at 14:19.

NR

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