Precision Drilling posts smaller-than-expected quarterly loss

The derrick of an oil rig belonging to Canada's Precision Drilling Corporation is raised for the first time as assembly work continues before starting to drill an escape hole to rescue 33 miners trapped in the San Jose mine, in Copiapo , September 16, 2010. REUTERS/Luis Hidalgo

Ahmed Farhatha, Reuters

Jul 31, 2017

Share

Canadian rig contractor Precision Drilling Corp reported a smaller-than-expected quarterly loss on Monday, helped by higher oil prices that drove strong demand from North America and the Middle East.

As global crude prices have risen, oil and gas companies have been putting more rigs to work. Brent crude prices averaged US$50.79 per barrel in the second quarter of the year, up 8 percent from 2016.

Precision Drilling's U.S. rig count rose to 59 in the second quarter ended June 30, up from 24 rigs a year earlier. The company had 29 active rigs in Canada, up from 13 rigs a year earlier.

The company's net loss narrowed to $36.1 million (US$29 million), or 12 Canadian cents per share in the second quarter ended June 30, from $57.7 million, or 20 Canadian cents per share, a year earlier.

Revenue rose to $275.5 million from $164 million.

Analysts on average had expected a loss of 20 Canadian cents and revenue of $272.3 million, according to Thomson Reuters I/B/E/S.