The gross margin for first half of the year and the second quarter of 2013 was 24% and (54)%, respectively, compared to 31% and 5% in the first half and second quarter of 2012. The negative gross margin during the period relates to lower work levels associated with spring breakup while costs associated with moving equipment and personnel still continued as equipment is returned to their summer locations. In the first half of 2013, Bertram drilled approximately 202,800 meters in Canada and approximately 21,000 in the U.S. This compares to the first half of 2012 where Bertram drilled approximately 347,600 meters in Canada and approximately 181,900 in the U.S.
Oil sands operations accounted for over $1.5 million of second quarter revenues and $30.6 million of year-to-date revenues in 2013 compared to $0.8 million and $16.9 million of second quarter and year-to-date revenues, respectively in 2012. Revenue was generated from programs conducted on behalf of major operators. Geothermal and geotechnical drilling activity accounted for $0.9 million of second quarter revenues and $1.8 of year-to-date revenues in 2013 compared to $1.9 million in the second quarter and $6.0 million of year-to-date revenue in 2012. Track seismic represents the remainder of the revenues.
Going forward, the Company anticipates continued strong activity levels in the Canadian oil sands. The bulk of growth in the energy division will be dependent on weather in the latter part of the year as an early freeze would positively impact work levels and financial performance. At the moment most of Bertram's oil sands rigs are fully committed for the 2013/2014 season including two newly acquired rigs capable of reaching greater depths that could translate into a dramatic effect on utilization going forward. Management also forecasts an increasing pipeline of seismic opportunities in North America and Latin America as evidenced by the Company's new Columbian joint venture, EESI. Finally, the geothermal and geotechnical markets are showing signs of increased activity and tender opportunities in the coming year.
MANUFACTURING DIVISION - DANDO DRILLING INTERNATIONAL LTD ("Dando")
Year-to-date revenues for 2013 were $8.8 million with an operating margin of 14% compared to revenues of $7.8 million with an operating margin of 24% in the first half of 2012. Revenues in the second quarter of 2013 were $4.7 million with an operating margin of 16% compared to revenues of $5.9 million with an operating margin of 28% in the second quarter of 2012. In the second quarter of 2013, the Company delivered ten rigs which comprised of three Watertec 40 heavy water well drills, one Mintec 12.8, one Watertec 6000, three Terrier mini rigs, one 3000 cable percussion rig and one Multitec 9000.
Demand for rigs and equipment remains high. Currently Dando has a confirmed order book in excess of $8.0 million and continues to have strong enquiries for its products. As part of its plans to service future growth, Dando is continuing to build additional small rigs for stock and a new prototype, a remote controlled self-loading tracked vehicle capable of carrying in excess of five tonnes. The Company continues to be on target to achieve a substantial increase in revenues and profit.
Markets continue to provide mixed signals with the hard rock mineral market showing some signs of recovery with good enquiries from mining companies. The water-well market remains buoyant with sizeable orders from Africa and very promising enquiries from Indonesia, Africa and Eastern Europe.
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