CALGARY, AB, March 21, 2024 /CNW/ - AKITA Drilling Ltd. (TSX: AKT.A)

AKITA Drilling Ltd. ("AKITA" or the "Company") announces net earnings of $18,415,000 for the year ended December 31, 2023, compared to $4,288,000 in 2022, an increase of 329% year over year and a return to a positive retained earnings balance. Significantly improved earnings translated into a 31% increase in adjusted funds flow from operations, which increased to $45,522,000 in 2023, from $34,813,000 in 2022. Both net income and adjusted funds flow from operations were the highest achieved since 2014. Despite improved financial results, activity was down year over year with the Canadian division achieving 2,239 operating days in 2023, compared to 2,518 operating days in 2022 and the US division achieving 3,853 operating days in 2023, compared to 4,088 operating days in 2022. In the US, 2023 started at full capacity but began to decline over the second half of the year while Canada fell behind 2022 in the second quarter and remained behind for the balance of the year. Improved operating margins per day, driven by improved day rates, were the key driver for the Company's improved year over year results. Operating margin per operating day increased 30% in Canada and 31% in the US.  Capital spending for the year was $24,592,000 in 2023 compared to $17,982,000 in 2022, and included the cost of upgrading one Canadian oil sands configured rig to position it for deep gas drilling. The Company's debt balance decreased by $24,000,000 in 2023, exceeding the Company's $20,000,000 debt repayment target, and now sits at $69,542,000 total debt compared to $93,514,000 total debt a year prior.