Hughes Drilling Pty Limited provides financial and operational guidance for the second half and fiscal 2013. For the period, the company utilisation of the expanded fleet continues at 97%. Clients have advised of an increase in required metres to be drilled reflecting a step-up in coal production. Consequently utilisation is expected to remain at or near 97%. By 30 June 2013, the company expects that the production rig fleet will have reached 38 rigs (the September 2012 Financial Briefing indicated 38 to 40 rigs). The 38th rig is expected to arrive in the last week of June.

For the second half of fiscal 2013, rig growth is therefore expected to be 4 new rigs compared with the 7 new rigs in the first half of fiscal 2013. New rig acquisitions will continue to be made following the securing of a new or expanding contract.

The company production drilling operations are expected to contribute approximately 85% of group profits for fiscal 2013 while Express Hydraulics and Reichdril are expected to contribute a combined 15% of fiscal 2013 group profits.