KCA Deutag - comment

Partially expected, but nice to have it confirmed, KCA Deutag continues to win extensions to its existing contracts, with this morning’s announcement relating to their middle east Land Drilling business. In total, the Company announced contract extensions and options totalling $170m. Two rigs have been extended in Oman, which is for 3yrs plus 4 optional, which is c. $80m in total. The other main portion of the contract wins come in Saudi Arabia where they have won a 5yr extension for one rig, which is valued at $60m.

All of these contracts improve the backlog and highlight the momentum KCA Deutag have in their Land Drilling business. KCA Deutag are due to report Q4 numbers in mid-May.