Independence Contract Drilling (ICD) saw its loss widen to $10.38 million, or $0.28 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.23 million, or $0.22 a share.
Revenue during the quarter dropped 24.06 percent to $17.99 million from $23.69 million in the previous year period. Gross margin for the quarter contracted 629 basis points over the previous year period to 32.92 percent. Operating margin for the quarter stood at negative 53.85 percent as compared to a negative 16.05 percent for the previous year period.
Operating loss for the quarter was $9.69 million, compared with an operating loss of $3.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.56 million compared with $7.21 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1623 basis points in the quarter to 14.23 percent from 30.46 percent in the last year period.
Chief executive officer Byron Dunn commented, "I am very pleased with ICD's performance throughout the extraordinarily difficult 2016 fiscal year. Despite suffering the worst energy industry downturn in history, ICD remained EBITDA positive with substantial margins generated by working rigs. During 2016, the ICD team reorganized and streamlined, and exited 2016 with a much more efficient cost structure. True pad-optimal ShaleDriller rigs were the last rigs to go down during the downturn, and have been the first to return to work as the market recovers. Since the end of 2016, ICD has signed term contracts with tenors ranging from six months to one year or longer for six rigs, and 100% of its marketed fleet is now contracted. ICD will be running more rigs than at any other point in the Company's history. Driven by what we believe is 100% effective utilization of available pad optimal rigs across the industry, dayrates for pad optimal ShaleDriller rigs have now moved higher from trough dayrates. We are in discussions with multiple customers for the addition of three ShaleDriller rigs to our marketed fleet, including our final rig conversion, and expect to resume ICD's growth arc shortly as market conditions continue to improve."
Operating cash flow drops significantlyIndependence Contract Drilling has generated cash of $16.97 million from operating activities during the year, down 38.01 percent or $10.41 million, when compared with the last year. The company has spent $20.06 million cash to meet investing activities during the year as against cash outgo of $72.22 million in the last year. It has incurred net capital expenditure of $20.25 million on net basis during the year, down 73.05 percent or $54.87 million from year ago.
Cash flow from financing activities was $4.81 million for the year, down 87.80 percent or $34.62 million, when compared with the last year.
Cash and cash equivalents stood at $7.07 million as on Dec. 31, 2016, up 32.32 percent or $1.73 million from $5.34 million on Dec. 31, 2015.
Working capital declines
Independence Contract Drilling has witnessed a decline in the working capital over the last year. It stood at $9.60 million as at Dec. 31, 2016, down 8.99 percent or $0.95 million from $10.55 million on Dec. 31, 2015. Current ratio was at 1.52 as on Dec. 31, 2016, down from 1.56 on Dec. 31, 2015.
Debt comes down significantlyIndependence Contract Drilling has recorded a decline in total debt over the last one year. It stood at $26.52 million as on Dec. 31, 2016, down 57.71 percent or $36.19 million from $62.71 million on Dec. 31, 2015. Short-term debt stood at $0.44 million as on Dec. 31, 2016. Total debt was 8.78 percent of total assets as on Dec. 31, 2016, compared with 19.92 percent on Dec. 31, 2015. Debt to equity ratio was at 0.10 as on Dec. 31, 2016, down from 0.27 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
