SDI results off but brighter outlook for H2 like AKITAStampede Drilling results off but they share a brighter outlook just like AKITA.
Stampede Drilling loses $2.24-million in Q2
Second quarter 2024 operational highlights:
- Revenue was $9,918, a decrease of $3,879 (28 per cent) from $13,797 in the corresponding 2023 period. The decrease was primarily due to the decreased number of operating days.
- Gross margin (1) was 30 per cent, a decrease of 1 per cent from 31 per cent in the corresponding 2023 period. The decrease was primarily due to the reduction in operating days and revenue, and, as a result, an increase in repair and maintenance costs per day.
- Net loss was $2,248, a decrease of $2,187 (3,585 per cent) from $61 in the corresponding 2023 period. The decrease was primarily related to the decreased revenue as a result of lower operating days and higher depreciation expenses compared with the corresponding period of 2023.
- Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) was $934, a decrease of $1,619 (63 per cent) from $2,553 in the corresponding 2023 period. The decrease was primarily due to weather delays during the quarter, resulting in a reduction in operating days and operating margin.
- Free cash flow (1) was $841, a decrease of $1,136 (57 per cent), primarily related to the decrease of funds from operating activities.
- In the second quarter of 2024 the corporation repurchased and cancelled 2,600 common shares under its normal course issuer bid (NCIB) at a weighted average price per common share of 23 cents, for total consideration of $597. The total amount of common shares repurchased and cancelled during the second quarter of 2024 represents 1.23 per cent of the total issued and outstanding common shares of the corporation.
Outlook
Currently, the corporation has 13 out of its 19 rigs operating as of the date of this news release. The corporation anticipates maintaining this positive momentum into the back half of the year. The optimistic outlook for Western Canada, driven by rising global demand and increased tidewater access for Canadian producers, from the start-up of the Trans Mountain pipeline expansion in 2024 and LNG Canada planned for 2025, supports increased forecasted drilling activity amid continuing geopolitical challenges affecting global energy supply and commodity prices.