Saturday, July 24

Precision Drilling loses $ 75.9 million in Q2 despite improved outlook – CityNews Toronto

CALGARY – Precision Drilling Corp. fell short of expectations as its net loss increased in the second quarter to $ 75.9 million despite an improvement in the energy context due to compensation charges.

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

Revenue for the three months ended June 30 increased 6.1 percent 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 revenue, according to financial data firm Refinitiv.

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

Drilling rig usage days increased 199% in Canada compared to the second quarter of 2020 and 30% in the US.

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

“Our Canadian operations produced second quarter activity that tripled from 2020 levels and market strength continues to surprise to the upside,” said CEO Kevin Neveu.

Canada’s well services business has increased fivefold since last July, supported by commodity prices and the Canadian well abandonment program.

“The outlook for the broader Canadian market over the next 12 months remains exceptionally bright.”

This Canadian Press report was first published on July 22, 2021.

Companies in this story: (TSX: PD)

The Canadian Press

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