No dramatic turnaround in the near future, says Cabo Drilling

Michael Allan McCrae | October 30, 2014 | 4:54 pm Canada 

Cabo Drilling announced year end revenue down by almost half in its fiscal year end.

  • Cabo Drilling generated revenues for fiscal 2014 of $23.01 million, a 46% decrease compared to the $42.53 million recorded in the comparable period in fiscal 2013.
  • Revenue for the fourth quarter fiscal 2014 (“Q4 FY2014”) of $4.74 million compared to $8.91 million in the fourth quarter fiscal 2013 (“Q4 FY2013”).
  • Gross margin percentage for the quarter was (20.8%) (with depreciation included in direct costs), compared with 16.0% in for the corresponding period last year.
  • Negative EBITDA of $2.47 million for the quarter compared to $429,299 in Q4 FY2013, resulting in negative EBITDA per share of $0.03 for the quarter compared to $0.01 in Q4 FY2013.

The company said it closed its Montreal division and it’s reducing general and administration expenses.

“We believe we are at the bottom, but we do not believe there will be any dramatic turnaround in the industry in the near future,” commented Mr. Versfelt, President and CEO of Cabo Drilling.

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