Precision Drilling reports $37.5M loss in Q4, revenue down 46 per cent

CALGARY – Precision Drilling Corp. reported a fourth-quarter loss of $37.5 million as its revenue fell 46 per cent compared with a year earlier.

The contract drilling company says the loss amounted to $2.74 per share for the quarter ended Dec. 31 compared with a loss of nearly $1.1 million or eight cents per share a year earlier.

Revenue totalled $201.7 million, down from $372.3 million in the last three months of 2019.

The company said the drop in revenue was the result of lower activity across all of its operating segments with reduced customer drilling programs due to the economic slowdown.

Precision Drilling said the industry outlook and customer sentiment has improved in recent months, largely due to vaccine announcements, reopening of economies and steadily increasing commodity prices.

It said that although longer-term visibility remains limited, improved fundamentals from recovering global oil demand should further stabilize commodity prices and result in customers continuing to increase activity levels throughout the year.

This report by The Canadian Press was first published Feb. 10, 2021.

Companies in this story: (TSX:PD)