Trinidad maintains balance
Contractor avoids significant income drop in first quarter
Canadian contract company Trinidad Drilling posted first quarter 2002 net income of $1.1 million, or 11 cents per share, nearly even with earnings of $1.3 million or 13 cents per share in prior year's first quarter.
The company said it was able to keep earnings steady by maintaining tight controls on operating expenses during the period of reduced drilling activity. Trinidad said it maintained its margins as a percentage of revenue in the first quarter of 2002 despite tightening market conditions which put downward pressure on dayrates.
According to Trinidad, drilling activity for the second quarter of 2002 is forecasted to see a return to lower than normal break-up levels. The company also believes that industry utilization is expected to increase early in the third quarter based on operator summer drilling programmes.
The company added that recent increases in commodity prices combined with low interest rates has provided operators with improved cash flow projections. Trinidad believes increased cash flow should provide the company with improved activity levels by the end of the third quarter.