Trinidad Drilling Swings To Loss In Q3 On Lower Utilization

11/4/2009 5:55 PM ET

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Trinidad Drilling Slips To Q3 Loss - Quick Facts

(RTTNews) - Wednesday, a provider of drilling rigs, Trinidad Drilling Ltd. (TDG.TO: News , TDG.DB), reported a loss for the third quarter ended September 30, reflecting a 34% downslide in revenues, impacted by a significant drop in utilization of the rigs due to lower activity levels and a competitive pricing environment.

The Calgary, Alberta-based company's third-quarter net loss was C$12.14 million or C$0.10 per share compared with net income of C$20.37 million or C$0.21 per share a year earlier. Excluding stock-based compensation, net loss was C$10.06 million or C$0.08 per share compared with net income of C$21.57 million or C$0.22 per share for the year-ago period.

EBITDA plunged by 59.4% to C$27.26 million from C$68.15 million last year and EBITDA before stock-based compensation dropped by 57.1% to C$29.35 million from C$68.35 million last year.

Quarterly revenues slipped by 34.2% to C$126.14 million from C$191.69 million for the same period last year.

In land drilling market, utilization rate came down to 36% from 63% last year in Canada and rate of utilization was down to $61% from $85% in U.S. and International segment. Further, utilization rate for service rigs came down to 27% from 49% last year.

Rates per drilling day in Canada dropped to C$21.49 million from C$21.77 million for the same period last year and rates per drilling day in U.S. and international markets came down to C$21.82 million from C$22.67 million for the year-ago period.

In barge drilling market, rate per drilling day came down by 29.2% to C$28.81 million from C$40.68 million last year and utilization rate dropped to 72% from 83% for the same period last year.

For the nine months period, net loss was C$26.38 million or C$0.25 per share compared with net income of C$60.43 million or C$0.67 per share for the same period last year. However, excluding the impairment of intangible assets, net loss was C$3.19 million or C$0.03 per share compared with net income C$60.43 million or C$0.67 per share for the year earlier period.

Revenues for the nine month period was C$434.41 million, down 21.4% from C$552.52 million last year.

Wednesday TDG.TO closed at C$6.75, down C$0.23 or 3.30% on TSE.