News

Precision Drilling Corp. Reports 36% Drop in Q3 Profit

1 2 3 4 5

5.0

Andrew R. Michaud

• October 26, 2023

Precision Drilling Corp., a Canadian drilling rig contractor, announced a decline in third-quarter profit and missed revenue expectations due to weaker drilling and service activity. The net earnings dropped by 36% to CAD 19.8 million ($14.4 million), compared to CAD 30.7 million in the same period last year.

Revenue Falls Short of Analyst Expectations

Although the revenue increased to CAD 446.8 million from CAD 429.3 million, it fell short of the projected rise to CAD 460.5 million, according to a poll on FactSet.

Higher Revenue per Utilization Day

Precision Drilling Corp. witnessed higher revenue per utilization day in both Canada and the U.S. In Canada, the figure rose by 20% to CAD 32,224, while in the U.S., it increased by 26% to $35,135. However, the company's fleet was utilized for fewer days during the quarter.

Utilization Days Decline

The number of utilization days declined in both Canada and the U.S. In Canada, it fell by 2.7% to 5,284 days. Meanwhile, the decline in the U.S. was more significant, where the utilization days dropped to 3,815 from 5,287 in the previous year.