Drillcon Group's quarterly and annual reports.
 

DRILLCON Q2 REPORT

Uncertain Global Environment – Yet Continued Contract Inflow
Despite ongoing volatility in the raw materials and metals markets due to an uncertain global environment, we managed during the second quarter to secure three smaller but important contracts within the infrastructure segment. These include directional drilling in the Stockholm subway (Yellow Line), core drilling related to an infrastructure project in Iceland, and an assignment in collaboration with NCC for drilling in an open pit. In addition, a larger drilling contract was signed for a mine in Portugal, which commenced at the end of the second quarter. Demand for vertical drilling in Scandinavia has been characterized by a challenging market with price pressure and increased competition. In line with our strategy to prioritize profitable and well-balanced projects, we have in some procurements chosen to abstain from negotiations where the compensation level did not reflect the project’s risk profile. This has slightly affected production volume for the quarter, but at the same time, we have been able to ensure efficient use of resources by reallocating operators to other contracts with more stable conditions.

Strategic Initiatives and Outlook
Drillcon will continue working to strengthen our position as a technically leading provider of drilling services in the mining and infrastructure sectors in Europe. This year's contracts signed in Portugal, Spain, Sweden, Norway, and Iceland confirm that our strategy — focusing on complex assignments with high customer value — is successful. Demand in our core markets is expected to remain unchanged, although fluctuations in customer call-offs have been an issue during the first half of the year. We prioritize selective growth and deeper customer relationships, while continuing to invest in technical capacity, project quality, and long-term partnerships. These efforts aim to enable a return to stable value growth and improved profitability.

Focus on Value Creation and Technical Excellence
We remain firmly committed to meeting market demands with innovative and productive solutions, delivering first-class service, and developing our competitiveness. We will continue to expand our geographical territory in Europe, which over time will bring in new customers.

Patrik Rylander - CEO