Precision Drilling Q3 revenue up more than 50% from year ago as drilling ramps up

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Precision Drilling Corp. says it lost $38 million in its latest quarter as drilling accelerated and revenue increased more than 50 percent compared to a year ago.

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The Calgary-based company says the loss for the year ended September 30 was $2.86 per diluted share, compared to a loss of $28.5 million, or $2.08 per diluted share, in the same quarter last year.

The company’s third quarter revenue totaled $253.8 million, up from $164.8 million a year ago.

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Precision, which is the largest drilling rig contractor in the country, says there were an average of 51 active drilling rigs in Canada this quarter, up from 18 in the same quarter last year.

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In the US, the company had an average of 41 active drilling rigs in the quarter, up from 21 a year ago, while its international drilling business averaged six rigs, the same as a year ago.

In its outlook, Precision says that at current commodity prices it expects higher demand for its services and better fleet utilization as customers seek to maintain and replenish production levels.

“We believe current industry fundamentals are providing the most promising background for our business that we have experienced in nearly a decade,” Precision CEO Kevin Neveau said in a statement.

“Strong oil and natural gas prices, a significantly improved Canadian market structure and a rapidly declining drill but unfinished well all point to higher drilling activity in our core markets.”

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“While we are likely to be in the early innings, our firm bookings and current customer inquiries indicate significantly stronger demand for our services and improved fleet utilization as it continues to rebound.”



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