Precision Drilling reports profit for first time since 2019


Revenues jump on tight rig supply and 27% increase in North American drilling activity

Article content

Precision Drilling Corp. announced net earnings of $31 million in the third quarter of the year, as customer demand helped the oilfield service company return to profitability for the first time since 2019.

Advertisement 2

Article content

The Calgary-based company generated net earnings equivalent to $2.26 per share for the three months ended Sept. 30, compared with a net loss of $38 million in the third quarter of 2021, or $2.86 per share, the company said in a release Thursday.

Article content

“I am very pleased to see Precision’s financial performance return to profitability as the recovery in customer demand continues to gain momentum and now spans all geographies and services we provide,” chief executive Kevin Neveu said in a statement.

“With strong demand for our services, tight rig supply and pricing momentum on leading-edge day rates, we expect fleet average day rates and operating margins to continue trending upward well into 2023.”

Precision reported revenue gains thanks to a 27 per cent increase in North American drilling activity over the third quarter of 2021.

Advertisement 3

Article content

The company reported an average of 57 active drilling rigs in the U.S. during the third quarter, with 61 operating currently — a 20 per cent increase from the beginning of the year. In Canada, the company averaged 58 active rigs during the quarter, a 16 per cent increase over the same period last year.

Precision said it is focused on debt reduction while allocating 10 to 20 per cent of free cash flow toward share repurchases.

The company announced earlier this month that it had been awarded five-year drilling contracts in Kuwait and Saudi Arabia that will increase its active rig count in the region to eight rigs by the middle of 2023, representing $820 million in contracted revenue.

• Email: [email protected] | Twitter:

_____________________________________________________________

If you liked this story, sign up for more in the FP Energy newsletter.

_____________________________________________________________

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.



Leave a comment

x
SMM Panel PDF Kitap indir