It's not the Caribbean but North America that is the focus of Trinidad Drilling (formerly Trinidad Energy Services Income Trust). The company provides contract drilling to a range of oil and gas companies. Trinidad Drilling operates a combined fleet of more than 140 drilling and barge rigs that have the capacity to drill to depths between 1,000 and 6,500 meters. The company has pursued a strategy of growing its operations through the acquisition of a number of smaller drilling companies and the construction of new drilling rigs. In 2011 it had operations in Canada, Mexico, and the US.
Trinidad Drilling has expanded geographically and increased the depth capacity of its drilling rigs in order to exploit new drilling opportunities. In 2008 the company moved into Mexico, relocating three rigs from Canada into central eastern Mexico. It commenced drilling operations in Chile in 2009, but sold its rig there in 2010 to its operating partner, in order to focus on the recovering US drilling market.
Robust oil prices and higher demand (especially in the US) helped to lift the company's revenues in 2010, despite lower contract drilling day rates. However, additional repair, maintenance, training, and safety costs associated with putting previously inactive rigs back into action ramped up expenses and deepened Trinidad Drilling's net loss for the year.
The strong oil and gas exploration market continued in 2011. Record operating days and increased day rates spiked revenues and lifted net earnings for the year.
In 2011 Trinidad Drilling sold its 22 well servicing rigs to Central Alberta Well Services Corp. for $38 million, in order to raise cash and to focus on its core contract drilling business. It also bought four US-based drilling rigs that year.
The company, formed in 1996 as Trinidad Drilling, reorganized its operations into an income trust structure in 2002. At the time that structure had strong financial advantages for investors. (Subsequent changes in financial legislation made this form less attractive). In 2008 it reconverted itself from a trust back into a pure drilling business corporation to give a better return to its shareholders. – less