- Precision Drilling (PD) has posted another quarter of underwhelming financial performance as the global oil sector continues to flounder
- For the third quarter of 2020, total revenue fell 56 per cent compared to the same period last year, from more than C$375 million to less than $165 million
- This culminated in a 706 per cent increase in net loss, from $3.5 million in 2019 to more than $28.4 million this year
- With market volatility set to continue, the company said it will further pursue financial support opportunities from the government as well as economic stimulus programs
- Precision Drilling (PD) is currently up 4.3 per cent to $0.97 per share at 12:02pm EDT
Precision Drilling (PD) has posted another quarter of underwhelming financial performance as the global oil sector continues to flounder.
For the three months ending September 30, the Calgary-based service provider reported a 56 per cent drop in total revenue, from more than C$375 million in the third quarter of 2019 to less than $165 million this year.
This ultimately led to a 706 per cent increase in net loss for the period, from $3.5 million last year to over $28.4 million.
The COVID-19 pandemic, in addition to the OPEC oil price war earlier this year, has led to a substantial downturn in business among oil producers and explorers, which represent the significant majority of Precision Drilling’s income.
As a result, the company has seen a 70.4 per cent drop in drill rig utilisation across the US compared to this time last year, as well as a 57.8 per cent drop in Canada and a 32.4 per cent drop internationally.
But despite the poor performance, Kevin Neveu, President and CEO of Precision Drilling, said the results were better than expected.
“In the US, we have seen rig counts improve from third quarter lows back to 25 rigs running today and expect additional rig deployments to occur into year-end.
“In Canada, the seasonal activity recovery to date has been largely led by deeper, gas and liquid-rich plays and is expected to continue into the winter season with a modestly improved outlook with 26 rigs running today,” he added.
With a substantial level of uncertainty set to continue, the company said it would continue to pursue government financial support and economic stimulus programs, such as the $1.7-billion well site abandonment and rehabilitation program.
Precision Drilling (PD) is currently up 4.3 per cent to $0.97 per share at 12:02pm EDT.