Capital LtdCapital Ltd is another driller focused on the African market. Interestingly, they are big in Egypt re Geodrill is expanding and were the only act in town. They mostly do drilling but also offer lab services.
They just publish (october 13) their trading update as of september 30. Results were pretty good, Outlook for 4the quarter was raised. Interesting comment : Looking ahead we continue to see strong demand across all our business areas with the tender pipeline looking very encouraging. We see increased activity with our existing clients, given high commodity prices, but also new opportunities are opening in our key market Egypt, with exploration in the country showing very positive signs as we begin exploration contracts at Sukari and also with Thani and Allied
I have not done the math but they also trade very cheaply having made something like .10 in eps in the first half.
All this to say, everything points to an excellent quarter for GEO and the next ones should be pretty good. While it might be boring to wait for the rerating, it will boom one of these days. All the drillers are cheap, it will not stay this way forever. Otherwise, we will see some M&A in the sector. MDI did an acquisition in Australia and DH1 just merged with another company.
GLTA