Drilling company Foraco International (TSX: FAR) has just had its strongest quarter since the third quarter of 2014, and says it confirms a positive trend it has observed throughout 2017 and 2018.
For the second quarter ended June 30, Foraco tabled a net loss of US$1 million on revenue of US$45.7 million, compared to a loss of US$2.2 million on revenue of US$36.6 million in the year-ago quarter. That’s a 25% boost in quarterly revenue year over year.
Second quarter earnings before interest, taxes and depreciation were US$5.2 million, up 44% versus US$3.6 million a year ago.
Foraco says the stronger performance is primarily due to continued growth in Canada, Russia and Australia.
Foraco’s utilization rate rose to 43% during the second quarter, or its highest level since 2013, but the company says this is “still significantly below the rates reported before the industry downturn.”
The company’s net debt was US$ 127.2 million as of June 30 — up from US$ 122.7 million at the end of 2017 — with cash and equivalents standing at US$11.4 million at mid-year.
Most significantly in the first half of 2018, Foraco revenue in North America shot up 75% to US$31.6 million versus US$18.1 million in the first half of 2017 thanks to what the company describes as “new contracts with major and junior companies and increased activity on ongoing contracts in an overall growing market.”
In mid-day trading on Aug. 2, Foraco shares were up a penny to 40¢ on the quarterly results.