As prices for crude oil and natural gas increased, demand for drilling services continued to improve into the third quarter. Operating days increased to 1,169 in the third quarter of 2021 compared to 531 in the third quarter of 2020. In the third quarter of 2021, the Company recorded a net loss of
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CONSOLIDATED FINANCIAL HIGHLIGHTS
($Thousands except per share amounts) | For the three months ended | For the nine months ended | |||||||||
2021 | 2020 | Change | % Change | 2021 | 2020 | Change | % Change | ||||
Revenue | 29,906 | 18,849 | 11,057 | 59% | 75,728 | 98,780 | (23,052) | (23%) | |||
Operating and maintenance expenses | 25,354 | 13,719 | 11,635 | 85% | 59,267 | 75,785 | (16,518) | (22%) | |||
Operating margin | 4,552 | 5,130 | (578) | (11%) | 16,461 | 22,995 | (6,534) | (28%) | |||
Margin % | 15% | 27% | (12) | (44%) | 22% | 23% | (1) | (4%) | |||
Adjusted EBITDA(1) | 1,395 | 1,635 | (240) | (15%) | 7,529 | 16,265 | (8,736) | (54%) | |||
Per share | 0.04 | 0.04 | - | 0% | 0.19 | 0.41 | (0.22) | (54%) | |||
Adjusted funds flow from (used in) operations(1) | 252 | (669) | 921 | 138% | 5,027 | 11,583 | (6,556) | (57%) | |||
Per share | 0.01 | (0.02) | 0.03 | 150% | 0.13 | 0.29 | (0.16) | (55%) | |||
Net loss | (6,433) | (8,203) | 1,770 | 22% | (16,192) | (65,682) | 49,490 | 75% | |||
Per share | (0.16) | (0.21) | 0.05 | 24% | (0.41) | (1.66) | 1.25 | 75% | |||
Capital expenditures | 4,130 | 742 | 3,388 | 457% | 8,872 | 5,881 | 2,991 | 51% | |||
Total assets | 241,333 | 278,072 | (36,739) | (13%) | 241,333 | 278,072 | (36,739) | (13%) | |||
Total debt | 74,549 | 74,252 | 297 | 0% | 74,549 | 74,252 | 297 | 0% | |||
(1) Non-GAAP Items |
United States Drilling Division
For the three months ended | For the nine months ended | ||||||||||
2021 | 2020 | Change | % Change | 2021 | 2020 | Change | % Change | ||||
Operating days | 723 | 397 | 326 | 82% | 2,042 | 2,048 | (6) | (0%) | |||
Utilization | 46% | 25% | 21% | 84% | 44% | 42% | 2% | 5% | |||
Revenue per operating day(1) | 25,137 | 31,703 | (6,566) | (21%) | 24,715 | 32,370 | (7,655) | (24%) | |||
Operating and maintenance expenses per operating day(1) | 21,249 | 23,897 | (2,648) | (11%) | 19,498 | 24,331 | (4,833) | (20%) | |||
Operating margin per operating day | 3,888 | 7,806 | (3,918) | (50%) | 5,217 | 8,039 | (2,822) | (35%) | |||
(1)Excludes flow through costs. |
Activity increased 82% in the third quarter of 2021 to 723 operating days compared to 397 in the third quarter of 2020. The active rig count has continued to improve in the US since the trough seen in the third quarter of 2020. Despite increased activity, day rates are still low. Revenue per day decreased 21% to
Canadian Drilling Division
For the three months ended | For the nine months ended | ||||||||||
2021 | 2020 | Change | % Change | 2021 | 2020 | Change | % Change | ||||
Operating days | 446 | 134 | 312 | 233% | 1,096 | 846 | 250 | 30% | |||
Utilization | 24% | 7% | 17% | 243% | 20% | 15% | 5% | 34% | |||
Revenue per operating day(1)(2) | 23,112 | 34,985 | (11,873) | (34%) | 25,162 | 32,069 | (6,907) | (22%) | |||
Operating and maintenance expenses per operating day(1)(2) | 18,543 | 19,791 | (1,248) | (6%) | 18,710 | 23,182 | (4,472) | (19%) | |||
Operating margin per operating day | 4,569 | 15,194 | (10,625) | (70%) | 6,452 | 8,887 | (2,435) | (27%) | |||
(1)Excludes flow through costs. | |||||||||||
(2)Includes AKITA's share of Joint Venture revenue and expenses. |
During the third quarter of 2021, AKITA achieved 446 operating days 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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