Capital Drilling revenue rise to signal recovery in mining sector?
Capital Drilling has reported a rise in revenue for the first time in four years, sparking something of a mining recovery.
The reported rise represents an “increasing interest” in the mining sector, the company said.
“The increasing interest from the mining industry, particularly over the last few months, to invest in assets combined with the firming of selected metal pricing, has injected some momentum in tendering for new contracts as well as higher demand from existing clients for the group's drilling services,” said Mark Parsons, chief executive.
The company reported a 7pc rise in revenue to $41.7m, with tax profits rising to $748,000 in the six months to June 30.
Capital Drilling, just one of many companies struggling with debt, has been initiating cost reduction measures for the last four years, with the increased revenue proving something of a turning point for the company and the wider industry.
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