CALGARY, AB, March 20, 2023 /CNW/ - AKITA Drilling Ltd. (TSX: AKT.A)

AKITA Drilling Ltd. ("AKITA" or the "Company") announces net earnings of $4,288,000 in 2022 compared to a net loss in 2021 of $20,990,000, marking a significant turning point for the Company. This meaningful improvement in the Company's results is primarily due to strong results in the Company's US division. While the Company was more active in both Canada (2,518 operating days in 2022 compared to 1,594 operating days in 2021) and the US (4,088 operating days in 2022 compared to 2,871 operating days in 2021) the primary driver for the improved results was the 165% increase in the Company's adjusted operating margin in the United States in 2022, most of which was generated in the second half of the year. Funds flow from operations increased to $34,813,000 in 2022, the highest annual funds flow from operations since 2015. The Company's net earnings and funds flow from operations were both weighted heavily to the fourth quarter which generated 46% of the funds flow from operations for the entire year. Capital spending for the year was 10% higher in 2022 than in 2021, with 36% of the 2022 capital being spent in the first quarter of the year. This weighting of capital spend early in the year, when significantly improved results were not yet realized, increased the Company's total debt to $95 million in the first quarter of 2022, with the balance of the Company's capital program for the year funded through cash flow.