Exploration drilling industry results for 2022: early snapshot

March 15, 2023

With the conclusion of 2022, the performance of exploration drilling companies has begun trickling through the results of publicly listed companies. The annual reports of Geodrill, Major Drilling, and Boart Longyear provide an insight into the state of the industry in preparation for the Coring Magazine annual statistics.

Geodrill marks an impressive 2022 fourth quarter and year-end financial results

Geodrill, West Africa’s leading drilling company, has released its financial results for the Fiscal 2022, ended December 2022. According to the company’s official statistics Geodrill has registered an increase of all financial performance indicators.

In fiscal 2022, Geodrill generated revenue of USD 138.6 million representing a 20% increase year-over-year. The company also recorded a gross profit of USD 40 577 463. In the past fiscal year Geodrill grew its fleet size to 76 drills and maintained rig utilization of approximately 70%.

‘Once again, Geodrill delivered a record year, generating an increase in annual revenue, net income and EBITDA. This accomplishment follows on the backdrop of our 2021 financial performance in which the Company also delivered significant increases on these financial metrics,” said Geodrill CFO, Greg Borsk. ‘Our continued financial success is a testament to our business strategy: to provide diverse drilling services, back-stopped by an unparalleled access to a high-performance rig fleet and workforce. This strategy, combined with taking the prudent step to geographically expand into Egypt and South America, has allowed Geodrill to return capital to our shareholders with an increased semi-annual dividend.’

Major Drilling reports 2022 fiscal year delivered best financial performance since 2013

The fiscal year that ended on 30 April, 2022, was a rewarding year for Major Drilling according the company’s officially released financial report.

The Company recorded its highest annual revenue since fiscal 2013, at CAD 650.4 million, up 51% from revenue of CAD 432.1 million recorded in the prior year. The gross profit amounts to CAD 140 million which is a 21.5% increase from fiscal 2021.

‘Specialized drilling remains the key focus and strategy of the Company as 64% of the year’s revenue was attributed to specialized projects. Customers are increasingly turning to Major Drilling for their challenging drill programs, as exploration programs are becoming more remote or deeper in the ground, requiring complex drilling solutions’, is stated in the company’s official report.

Boart Longyear announced revenue increase of 13% for full year 2022

Boart Longyear announced that for fiscal 2022 (ending on 31 Dec. 2022) revenue has increased with 13% compared to the previous year. The company delivered revenue in excess of USD 1 billion and net profit after tax of USD 12 million. Average rig utilization is 49% which makes for 2% increase over 2021.

‘I am enthusiastic for 2023 as we execute our targeted operating plan focused on strategically growing Drilling Services, selectively expanding Global Products and revolutionizing the mining industry through Veracio’s breakthrough technology,’ reads the official statement of Boart Longyear’s Chief Executive Officer, Jeff Olsen.

Behind the numbers

The results announced by Geodrill, Major Drilling, and Boart Longyear indicate significant improvement in income, profits, as well as rig utilization. Whether this trend will be confirmed across the entire exploration drilling industry, look forward to the upcoming editions of Coring Magazine!