The $14 million loss before interest tax depreciation and amortisation compares unfavourably with a $2 million loss posted in the first quarter of 2014, and was generated from revenue of $187 million — $10 million lower than in the previous corresponding quarter.
The company said the fall was primarily due to a $7 million before tax loss recorded on its drilling business as a result of higher consumable expenses incurred on its North American operations, as well as a higher US dollar and price reductions.
Drilling revenue decreased by 3%, or $3 million against the previous corresponding quarter, while products revenue fell by 12% or $7 million primarily due to currency movements, though the company said demand continued to be tempered by market conditions.
The adjusted EBITDA loss was $10 million, down from a $4 million profit recorded during the March 2014 quarter, while the loss from consolidated trading activities of $24 million was greater than the $23 million loss recorded in the first three months of 2014.
Cash flows for the quarter totalled $75 million, up from $6 million in the March 2014 quarter as a result of changes in working capital and around $19 million spent on fees related to the company’s recapitalisation.
Boart president and chief executive Richard O’Brien said there were positives in the results for the company.
“Despite continuing challenges we face from historically weak demand for our services and products, we are seeing the benefits of our aggressive cost actions and other strategies to improve productivity in our core operations, as reflected in a loss from trading activities for the period which was unfavourable by only $1 million compared to the same period in 2014 even though comparable period revenue decreased by $10 million,” he said.
“Along with our ongoing efforts to improve financial performance, we remain focused on supporting the needs of our customers, operating safely and pursuing new product innovations, all supported by an improved capital structure as a result of the recapitalisation completed in January this year.
Boart had a cash and cash equivalent position of $169 million at the end of March, with a net debt position of $538 million.
