Increasing demand for Swick Mining Services’ rigs, higher drilling rates and robust commodity prices have prompted Deutsche Bank revise earnings forecasts and reinstate the company with a “hold” recommendation.
Increasing demand for Swick Mining Services ’ rigs, higher drilling rates and robust commodity prices have prompted Deutsche Bank revise earnings forecasts and reinstate the company with a “hold" recommendation.
Utilisation of the rig fleet is set to rise to 78 per cent in the first quarter of financial year 2012, following recent contract wins. The change will push the order book past $215 million for the company. Sale of the surface diamond and multi-purpose drilling fleet, both non-core assets, has strengthened the balance sheet and the company will use increased cash flow to pay down debt and fund capital expenditure.
