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

Photo: The Canadian Press

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.”