Precision Drilling Corp. says it lost $48.9 million for the three months ending June 30, in a July 23, 2020 story. (Photo by THE CANADIAN PRESS)

Precision Drilling Q2 loss surges as pandemic weakens demand for oil

$48.9 million lost

CALGARY — Precision Drilling Corp. says its second-quarter loss surged while revenues plummeted as the COVID-19 pandemic caused demand and prices for oil to dwindle.

The drilling company says it lost $48.9 million or 18 cents per share for the three months ending June 30, compared with a $13.8-million, five cents per share loss a year earlier.

Revenues for the three months ended June 30 decreased 47 per cent to $189.8 million, from $359.4 million in the second quarter of 2019.

The results were in line with expectations, according to financial markets data firm Refinitiv.

Precision says its Canadian market share was 36 per cent in the quarter with a third-quarter seasonal rebound expected to be “muted with limited visibility into long-term customer demand.”

Precision says deeper cost-cutting than was previously announced should lead to an additional $14 million in annualized savings. Total savings, capital expenditure reductions and the Canadian wage subsidy program will reduce 2020 cash outflows by up to $150 million, above its $100-million previous target.

“Our actions have further strengthened and positioned the company both financially and competitively for an eventual industry recovery,” stated president and CEO Kevin Neveu.

This report by The Canadian Press was first published July 23, 2020.

oil and gas

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘So sorry:’ Man pleads guilty for gas-and-dash death of Thorsby gas station owner

Mitchell Robert Sydlowski was charged with second-degree murder, but the 29-year old pleaded guilty to the lesser offence

84 new cases of COVID-19 reported Friday

1,036 active cases across Alberta, 10,796 recovered cases

The photography trend that continues to climb: Best friend photo shoots

Rimbey photographer reflects on the growing demand for these lifestyle set shoots.

76 new cases of COVID-19 reported Thursday

Active cases at 1,036, 10,713 recovered cases

Wetaskiwin Regional Public Schools receive grant from Indigo Love of Reading Foundation.

WRPS has received $15,975 from the Indigo Love of Reading Foundation.

Premier Jason Kenney in Lacombe to introduce rural Internet

Shaw to provide 1g Internet to all AB residential customers

Widow of slain Red Deer doctor thanks community for support ahead of vigil

Fellow doctors, members of the public will gather for a physically-distanced vigil in central Alberta

VIDEO: World responds to B.C. girl after pandemic cancels birthday party

Dozens of cards and numerous packages were delivered to six-year-old Charlie Manning

U.S.-Canada pandemic border restrictions extended into September

‘We will continue to keep our communities safe,’ says Public Safety Minister Bill Blair

AB Infrastructure Minister announces $8,522,800 regional water transmission line

Funding is covered jointly by the province, Ottawa and benefiting municipalities

WE Charity registers as lobbyist, lays off staff, looking to sell real estate

WE Charity said its financial position has been greatly affected by the COVID-19 pandemic

Ermineskin Cree Nation has a new chief

There were seven challengers to incumbent, including NGCI president

Three people drown at Crescent Falls

Rocky Mountain House RCMP say the incident occurred Tuesday

Most Read