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Mining services company Capital hiked its interim dividend after reporting a rise in profit as revenue was boosted by rising demand for drilling services.
For the period 1 January to 30 June 2021, pre-tax profit rose $24.3 million from $19.1 million year-on-year as revenue jumped to $98.7 million from $65.1 million.
First-half average rig utilisation was 73%, an increase of 28.1% on H1 2020 (57%) and 21.7% on H2 2020 (60%).
'Strength across all areas of the business has led to significant revenue growth, up 52% on the prior period, a reflection of an outstanding performance at our underlying operations and improved market activity,' the company said.
'Given the strength of the underlying business, we have today announced an interim dividend to shareholders of 1.2 cents per share, representing a 33% increase on the previous corresponding period,' it added.
The company maintained its revenue guidance range of $200-to-$210 million for 2021, as guided in the Q2 2021 trading update.
'Demand for drilling services has continued to increase this year and the outlook remains robust for maintaining a high utilisation rate through H2 2021;