The impact of the severe economic slowdown, attributable to the COVID-19 global pandemic that curtailed drilling activity over the last three quarters of 2020, continued to influence the first quarter of 2021. In the first quarter of 2021, the company recorded a net loss of
Compared to the fourth quarter of 2020, the first quarter of 2021 has shown definite signs of improvement. Activity levels in both
CONSOLIDATED FINANCIAL HIGHLIGHTS
($ thousands except per share amounts) | |||||||
For the three months ended | 2021 | 2020 | Change | % Change | |||
Revenue | 27,171 | 53,572 | (26,401) | (49%) | |||
Operating and maintenance expenses | 20,012 | 41,192 | (21,180) | (51%) | |||
Operating margin | 7,159 | 12,380 | (5,221) | (42%) | |||
Margin % | 26% | 23% | 3% | 13% | |||
Adjusted EBITDA(1) | 4,534 | 11,646 | (7,112) | (61%) | |||
Per share | 0.11 | 0.29 | (0.18) | (61%) | |||
Net cash from (used in) operating activities | (5,692) | 4,583 | (10,275) | (224%) | |||
Adjusted funds flow from operations(1) | 3,719 | 10,154 | (6,435) | (63%) | |||
Per share | 0.09 | 0.26 | (0.17) | (65%) | |||
Net loss | (3,651) | (52,257) | 48,606 | 93% | |||
Per share | (0.09) | (1.32) | 1.23 | 93% | |||
Capital expenditures | 1,604 | 3,527 | (1,923) | (55%) | |||
Weighted average shares outstanding | 39,608 | 39,608 | - | 0% | |||
Total assets | 252,771 | 317,567 | (64,796) | (20%) | |||
Total debt | 79,258 | 86,631 | (7,373) | (9%) |
CONSOLIDATED OPERATIONAL HIGHLIGHTS
For the three months ended | 2021 | 2020 | Change | % Change | |||
Operating days | 490 | 613 | (123) | (20%) | |||
Utilization | 27% | 55% | (28%) | (51%) | |||
Revenue per operating day(1)(2) | 28,816 | 30,449 | (1,633) | (5%) | |||
Operating and maintenance expenses per | 21,071 | 23,002 | (1,931) | (8%) | |||
Operating margin per operating day | 7,745 | 7,447 | 298 | 4% | |||
Operating days | 704 | 1,108 | (404) | (36%) | |||
Utilization | 46% | 68% | (22%) | (32%) | |||
Revenue per operating day(1) | 26,888 | 35,996 | (9,108) | (25%) | |||
Operating and maintenance expenses per | 20,878 | 28,013 | (7,135) | (25%) | |||
Operating margin per operating day | 6,010 | 7,983 | (1,973) | (25%) | |||
(1)Non-GAAP Items | |||||||
(2)Includes AKITA's share of Joint Venture revenue and expenses. |
United States Drilling Division
In the US, the land drilling active rig count reached a decade low of 244 rigs in August of 2020, and has been slowly increasing since then, with 417 rigs active at the end of the first quarter of 2021. This level of activity is still significantly lower than the prior two years. AKITA's utilization was 48% (704 operating days) in the first quarter of 2021, compared to 32% (506 operating days) in the fourth quarter of 2020 and 68% (1,108 operating days) in the first quarter of 2020. Although activity has begun to improve in the US, it is improving slowly and day rates remain depressed.
Revenue in the US was
Canadian Drilling Division
In
Revenue in
FURTHER INFORMATION
This news release shall be used as preparation for reading the full disclosure documents. AKITA's unaudited interim condensed consolidated financial statements and management's discussion and analysis for the quarter ended
NON-GAAP ITEMS
This news release references Non-GAAP (Generally Accepted Accounting Principles) items. Revenue per operating day, operating and maintenance expense per operating day, adjusted revenue, adjusted operating and maintenance expense, EBITDA and adjusted funds flow from operations are all considered Non-GAAP items. Management feels that these Non-GAAP items are useful in assessing the Company's performance. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies. For further information, see "Basis of Analysis in this MD&A and Non-GAAP Items" in AKITA's
FORWARD-LOOKING INFORMATION:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions (including as may be affected by the COVID-19 pandemic), and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
SOURCE
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