Capital Drilling swings to interim loss amid mining sector slump

25th Aug 2015 10:49

(ShareCast News) - Drilling services provider Capital Drilling said it swung to a loss in the first six months of 2015, as the slump in the mining industry dragged revenue lower.In the six months to 30 June, the group posted a $3.9m pre-tax loss compared with a $1.8m profit in the corresponding period a year earlier, while revenue declined 27.5% year-on-year to $39m, which represented a 13.5% drop from the previous quarter.The group said its fleet utilisation declined from 45% on an average fleet size of 95 rigs to 34% from 97 rigs, while average revenue per operating rig declined 2% to $189,000.Despite the ongoing pressure in the mining industry, group chief executive Mark Parsons said the company had delivered a "resilient" performance."We continue to maintain a conservative approach to capital expenditure and a rigorous approach to cost management and savings through all levels of the group," he added.The group will pay an interim dividend of 1.9 cents per share, having not paid a dividend for the first half of 2014.Capital Drilling shares were untraded on Tuesday.