AKITA Drilling Ltd. Announces First Quarter Results



    CALGARY, April 26 /CNW/ - AKITA Drilling Ltd. announced first quarter
earnings and funds flow today. AKITA Drilling Ltd.'s net earnings for the
three months ended March 31, 2007 were $9,087,000 or $0.50 per share on
revenue of $52,873,000. Comparative figures for 2006 were earnings of
$11,002,000 or $0.59 per share on revenue of $61,195,000. Funds flow for the
period was $15,630,000 compared to $16,519,000 in 2006.
    Weaker market conditions that began in the second half of 2006 continued
into the first quarter of 2007, resulting in lower contribution margins for
all rig categories. Operating statistics for the first three months of 2007
and 2006 are as follows:

    
    -------------------------------------------------------------------------
                                            Number of
                          Number of Rigs      Wells     Operating  Operating
                        ------------------  Drilled or    Days       Hours
                         Gross       Net     Serviced  (Drilling) (Servicing)
    -------------------------------------------------------------------------
    Canadian       2007    37      35.075       313       2,085       N/A
     Drilling      2006    37      34.075       399       2,601       N/A
    -------------------------------------------------------------------------
    Alaskan        2007     3         1.5         1          59       N/A
     Drilling      2006     1         0.5         2          70       N/A
    -------------------------------------------------------------------------
    Canadian Well  2007     3         1.5        24         N/A      1,128
     Servicing     2006     3         1.5        26         N/A      2,437
    -------------------------------------------------------------------------
    

    On April 13, 2007, the Company's management and employees were recognized
for the eighth time in the past nine years for their achievement in safety by
receiving a CAODC Safety Leadership Award at the 27th Annual CAODC Safety
Banquet.
    As a result of lower commodity prices for natural gas, and to a lesser
extent crude oil, management anticipates that weaker market conditions will
continue in the drilling business for the next six months and in the service
business for the foreseeable future. AKITA continually reviews its strategies
in order to optimize its market position and has the financial strength to
retain its focus in terms of safety and quality service for its customers.
Additionally, the Company remains well positioned to capitalize on longer-term
improvements in demand as a result of its diversified fleet.

    Financial results for the first quarter are as follows:


    
    Consolidated Balance Sheets
    -------------------------------------------------------------------------
                                                   March 31       December 31
    ($000's)                                    2007       2006      2006
                                                  (Unaudited)      (Audited)
    -------------------------------------------------------------------------
    ASSETS
    -------------------------------------------------------------------------
    Current assets
      Cash                                    $ 30,337   $ 38,486   $ 49,927
      Accounts receivable                       58,405     56,602     38,529
      Other                                      1,492        517        206
                                              ---------  ---------  ---------
                                                90,234     95,605     88,662

    Investments                                      -         55          -
    Capital assets                             138,450    106,279    133,575
                                              ---------  ---------  ---------
                                              $228,684   $201,939   $222,237
                                              ---------  ---------  ---------

    -------------------------------------------------------------------------
    LIABILITIES
    -------------------------------------------------------------------------
    Current liabilities
      Bank indebtedness                       $  2,850   $      -   $      -
      Accounts payable and accrued liabilities  22,237     21,111     24,772
      Deferred revenue                           1,732          -          -
      Dividends payable                          1,280      1,112      1,285
      Income taxes payable                       1,485      3,428      5,924
                                              ---------  ---------  ---------
                                                29,584     25,651     31,981
    Future income taxes                         15,396     14,985     14,016
    Pension liability                            3,432      3,171      3,367

    -------------------------------------------------------------------------
    CLASS A AND CLASS B SHAREHOLDERS' EQUITY
    -------------------------------------------------------------------------
    Class A and Class B shares                  23,391     23,677     23,440
    Contributed surplus                            887        474        652
    Retained earnings                          155,994    133,981    148,781
                                              ---------  ---------  ---------

                                               180,272    158,132    172,873
                                              ---------  ---------  ---------
                                              $228,684   $201,939   $222,237
                                              ---------  ---------  ---------
                                              ---------  ---------  ---------

    -------------------------------------------------------------------------



    Consolidated Statements of Earnings, Comprehensive Income and Retained
    Earnings
    -------------------------------------------------------------------------
    Unaudited                                               Three Months
    ($000's except per share amounts)                          Ended
                                                              March 31
                                                           2007      2006
    -------------------------------------------------------------------------
    REVENUE                                              $ 52,873   $ 61,195
    -------------------------------------------------------------------------

    COSTS AND EXPENSES
      Operating and maintenance                            30,156     34,527
      Depreciation                                          4,966      4,762
      Selling and administrative                            4,666      5,606
                                                         ---------  ---------
                                                           39,788     44,895
                                                         ---------  ---------
    OPERATING INCOME                                       13,085     16,300
                                                         ---------  ---------

    OTHER INCOME (EXPENSE)
      Interest income                                         409        384
      Gain on sale of joint venture interests in
       rigs and other assets                                  103        108
      Gain (loss) on foreign currency translation             (96)        30
                                                         ---------  ---------
                                                              416        522
                                                         ---------  ---------
    EARNINGS BEFORE INCOME TAXES                           13,501     16,822
                                                         ---------  ---------

    INCOME TAXES
      Current                                               3,034      5,035
      Future                                                1,380        785
                                                         ---------  ---------
                                                            4,414      5,820

    -------------------------------------------------------------------------
    NET EARNINGS AND COMPREHENSIVE INCOME                   9,087     11,002
    -------------------------------------------------------------------------

    Retained earnings, beginning of period                148,781    124,343
    Dividends declared                                     (1,280)    (1,112)
    Adjustment on repurchase and cancellation of
     share capital                                           (594)      (252)
    -------------------------------------------------------------------------
    RETAINED EARNINGS, END OF PERIOD                     $155,994   $133,981
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EARNINGS PER CLASS A & CLASS B SHARE
      Basic                                              $   0.50   $   0.59
      Diluted                                            $   0.50   $   0.59
    -------------------------------------------------------------------------



    Consolidated Statements of Cash Flows
    -------------------------------------------------------------------------
    Unaudited                                               Three Months
    ($000's)                                                   Ended
                                                              March 31
                                                           2007      2006
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    -------------------------------------------------------------------------
    Net earnings                                         $  9,087   $ 11,002
    Non-cash items included in earnings
      Depreciation                                          4,966      4,762
      Future income taxes                                   1,380        785
      Expense for defined benefit pension plan                 65         69
      Stock options charged to expense                        235          9
      Gain on sale of joint venture interests in
       rigs and other assets                                 (103)      (108)
                                                         ---------  ---------
    Funds flow from operations                             15,630     16,519
    Change in non-cash working capital                    (26,750)   (12,641)
                                                         ---------  ---------
                                                          (11,120)     3,878
                                                         ---------  ---------
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    -------------------------------------------------------------------------
    Capital expenditures                                   (9,877)    (4,959)
    Proceeds on sale of joint venture interests in
     rigs and other assets                                    139        140
    Change in non-cash working capital                        315       (244)
                                                         ---------  ---------
                                                           (9,423)    (5,063)
                                                         ---------  ---------
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    -------------------------------------------------------------------------
    Increase in bank indebtedness                           2,850          -
    Dividends paid                                         (1,280)    (1,112)
    Proceeds received on exercise of stock options              -        123
    Repurchase of share capital                              (643)      (256)
    Change in non-cash working capital                         26     (1,769)
                                                         ---------  ---------
                                                              953     (3,014)
                                                         ---------  ---------
    -------------------------------------------------------------------------
    DECREASE IN CASH                                      (19,590)    (4,199)
    -------------------------------------------------------------------------
    Cash position, beginning of period                     49,927     42,685

    -------------------------------------------------------------------------
    CASH POSITION, END OF PERIOD                         $ 30,337   $ 38,486
    -------------------------------------------------------------------------

    Interest paid during the period                      $     33   $     23
    Income taxes paid during the period                  $  7,473   $  7,480
    -------------------------------------------------------------------------
    

    %SEDAR: 00002868E




For further information:

For further information: Murray Roth, Vice President, Finance and Chief
Financial Officer, (403) 292-7950, website: http://www.akita-drilling.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890