News

Precision Drilling loses $75.9 million in second quarter despite better outlook

Precision Drilling loses $75.9 million in second quarter despite better outlook
Business
CALGARY - Precision Drilling Corp. missed expectations as its net loss surged in the second quarter to $75.9 million despite an improving energy backdrop because of compensation charges.

The Calgary-based contract drilling company says its lost $5.71 per diluted share, compared with a loss of $3.56 per share or $48.9 million a year earlier.

Revenues for the three months ended June 30 increased 6.1 per cent to $201.4 million from $189.8 million in the second quarter of 2020.

Precision Drilling was expected to lose $4.10 per diluted share on $208.4 million in revenues, according to financial data firm Refinitiv.

The company says its revenues increased due to higher oil and natural gas prices that strengthened energy fundamentals.

Drilling rig utilization days increased 199% in Canada compared with the second quarter of 2020 and by 30 per cent in the U.S.

International drilling activity decreased 21 per cent due to the expiration of drilling contracts.

“Our Canadian operations produced second-quarter activity up three-fold from 2020 levels and the strength of the market continues to surprise to the upside,“ stated CEO Kevin Neveu.

The Canadian well service business is up five-fold from last July, supported by commodity prices and the Canadian well abandonment program.

“The outlook for the overall Canadian market over the next 12 months remains exceptionally bright.”
Read more on Toronto Star
News Topics :
Similar Articles :
Business
CALGARY Precision Drilling Corp. reported a loss of $198.3 million in its fourth quarter as it was hit by $208 million in goodwill impairment charges. The oilfield services company...
Canada
Trainees roll pipe off the catwalk during a training session to lay down drill pipe on a rig floor at Precision Drilling in Nisku, Alta., on Friday, January 20, 2016....
Business
CALGARY Precision Drilling TSX PD is reporting first quarter net earnings of $102 million, or 35 cents per diluted share, and also increased its revenues by 13 per cent. Net earnings...
Canada
The Calgary based company says it earned $25 million, or eight cents per diluted share, for the quarter ended March 31. That compared with a loss of $18.1 million, or six...
Business
CALGARY Precision Drilling Corp. says its second quarter loss surged while revenues plummeted as the COVID 19 pandemic caused demand and prices for oil to dwindle. The drilling company says it...