KCA Deutag - comment

KCA Deutag announced their Q2 results will a subsequent call to be held on Thursday.  With the announcement of the $1.9725bn bid for KCA Deutag by Helmerich & Payne (H&P), analysts are less focused on the operational numbers.  H&P expect that the acquisition will close prior to year-end, subject to some regulatory approval.  

Operationally, the business continues to see growth in both revenue and EBITDA across all segments, with Land Drilling showing the strongest growth.  This isn’t reflected in the cashflow as some of the growth has consumed working capital.  The Company have only published the accounts with no accompanying commentary or presentation.  We expect further details on Thursday.