Capital Limited (LSE:CAPD) has increased its revenue guidance for the second time this year after a strong third quarter for the Africa-focused mining service group.

It reported better than anticipated drilling utilisation rates, and said the Sukari mining operations in Egypt were “delivering ahead of contract targets”.

As a result, it expects turnover to be in the order of US$220mln-US$225mln for 2021, up from previous guidance of US$200mln-US$210mlnm and US$185-US$195mln at the start of the year.

The upgrade followed a strong third quarter from the group. Revenue for the three months ended September 30 was a record US$61.6mln, up 12.6% quarter-on-quarter, or almost 75% year on year.

Capital highlighted the impact of non-drilling operations with this income stream contributing 26% of revenues.

Chief executive Jamie Boyton said: “Looking ahead we continue to see strong demand across all our business areas with the tender pipeline looking very encouraging.

“We see increased activity with our existing clients, given high commodity prices, but also new opportunities are opening in our key market Egypt, with exploration in the country showing very positive signs as we begin exploration contracts at Sukari and also with Thani and Allied.”

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