Independence Contract Drilling, Inc. (ICD) gained in the current market after announcing its fourth quarter and fiscal 2021 results. ICD values at $4.66, gaining more than 8.12% compared to Friday’s closing price. The stock closed at $4.31 at the end of the last trading session. The stock volume traded in the previous trading session was around 264.79K shares. The current market cap of the company is about $48.48 million.
ICD: Q4 and Fiscal 2021 Key Financials
- Independence Contract Drilling, Inc.’s revenue in Q4 2021 was $28.6 million. It is an increase compared to the revenue of $13.3 million in Q4 2020.
- Fiscal 2021 revenue was $88 million, witnessed a slight increase in the revenue compared to $83.4 million in fiscal 2020.
- The company’s net loss in Q4 2021 was around $31.5 million, less than the net loss of $43.1 million in Q4 2020.
- ICD’s net loss in fiscal 2021 was around $66.7 million, and profitability improved significantly compared to the net loss of $96.6 million in fiscal 2020.
- The Q4 2021 loss per share was $3.23, compared to a net loss of $7.02 in Q4 2020.
- For fiscal 2021, the loss per share was $8.89, compared to $19.69 in fiscal 2020.
ICD CEO’s Remarks
ICD’s CEO, Anthony Gallegos, said that ICD achieved all operational and financial targets in 2021. Market conditions are progressively improving as the supply of pad-optimal super spec rigs becomes scarce. Although I foresee a slowdown in rig reactivations in 2022 compared to 2021, I expect dayrate growth to continue. For this reason, ICD is well-positioned to benefit from the market’s improvement.
ICD 2022 Outlook
Revenue per day is expected to rise by roughly 14% sequentially in the first quarter of 2022 compared to the fourth quarter of 2021. The first and second quarters of 2022 are expected to show extensive sequential improvements in revenue and margin per day for ICD, and the second half of the year is expected to see even more significant gains.
Conclusion
The company’s profitability is improved this year compared to the last year. Due to this, the stock is gaining significantly in the current market today. The company expects to increase revenue in the upcoming quarters because of the existing contracts.
