Precision Drilling Q1 loss narrows as active rig count in U.S. grows

Karan Nagarkatti, Reuters

Trainees Dan Brook and Bradley Williams are directed by instructor Clint Dyck while training to lay down drill pipe on a rig floor, at Precision Drilling in Nisku, Alta., January 20, 2016 , The Canadian Press/Jason Franson

Security Not Found

The stock symbol {{StockChart.Ric}} does not exist

See Full Stock Page »

Canadian rig contractor Precision Drilling Corp (PD.TO) reported a smaller quarterly loss on Thursday, helped by a 36-per-cent rise in the number of active rigs in the United States.

Revenue from rig utilization per day was up marginally to US$20,603 in the U.S., while it rose 3.8 per cent to $22,209 in Canada.

Precision Drilling's average rig count in the U.S. rose to 64 from 47 in the year-ago quarter. The company had 72 active rigs in Canada on average, down from 76 a year ago.

"As a result of increased demand in our U.S. operations, we are increasing our projected capital spending by $22 million," Precision Chief Executive Kevin Neveu said, adding that about half the addition would be used to expand and upgrade the drilling fleet.

Net loss narrowed to $18.1 million, or six cents per share, in the first quarter ended Mar. 31, from net loss of $22.6 million, or eight cents per share, a year earlier.

Revenue rose to $401 million from $368.7 million.