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 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

Alberta Premier Jason Kenney said Thursday that the province may consider a regional approach to loosening COVID-19 restrictions if numbers continue to decline. (photo by Chris Schwarz/Government of Alberta)
Province further easing health restrictions

Numbers of people hospitalized and in intensive care has dropped dramatically, says premier

Government of Alberta COVID-19 Aggregate Data Map. Screen Grab/ https://www.alberta.ca/stats/covid-19-alberta-statistics.htm#geospatial
City of Wetaskiwin under 10 active cases; single active case in County

Active COVID-19 cases in the City and County of Wetaskiwin continue to drop.

File photo
Alberta’s central zone has 670 active cases

301 new cases identified Sunday

Alberta has 1,910 active cases of COVID-19 as of Wednesday. Red Deer is reporting five active cases, with 108 recovered. (File photo)
Red Deer reports 25th COVID-19 death

415 new cases identified provincially Saturday

Alberta Health reported two new COVID-19 deaths in Red Deer Friday. (Image courtesy CDC)
Two more deaths linked to Olymel outbreak in Red Deer

Province reported 356 additional COVID-19 cases Friday

A ” Justice for Jeff” T-shirt. (Photo submitted)
Rally to be held outside Red Deer courthouse for slain Ponoka man

Sentencing for accused charged with manslaughter with a firearm set for March 4

THE CANADIAN PRESS/Jeff McIntosh
Time to check the mail: Every household to receive a Canada Post postcard this spring

Postcard can be mailed for free to any address in Canada

A cross-country skier glides along the banks of the Ottawa River in Ottawa on Thursday, Feb. 25, 2021. Canadians across the country can look forward to a mild spring peppered with the odd winter flashback throughout the first part of the season, according to predictions from one prominent national forecaster. THE CANADIAN PRESS/Sean Kilpatrick
Mild spring with some wintry blasts predicted for most of Canada: Weather Network

Weather Network is forecasting a slower than average start to spring in British Columbia

AstraZeneca’s vaccines are ready for use at the vaccination center in Apolda, Germany, Sunday, Feb.28, 2021. (Michael Reichel/dpa via AP)
Feds hoping for AstraZeneca shots this week as Pfizer-BioNTech prepare next delivery

The first of those doses could start to arrive in Canada as early as Wednesday

People line up outside a vaccine clinic as seniors wait to get the COVID-19 vaccine in Edmonton Alta, on Friday February 26, 2021. THE CANADIAN PRESS/Jason Franson
Alberta Health Services head sorry for glitches in vaccine booking system for seniors

AHS president said technical issues have been fixed and a virtual waiting room is in place

Vandalism is shown on Alberta NDP MLA Janis Irwin’s constituency office in Edmonton in this handout photo on Saturday, February 27, 2021. Alberta Premier Jason Kenney quickly condemned vandalism at an Opposition legislature member Janis Irwin’s Edmonton office after the MLA posted pictures showing her front window spray-painted with the words “Antifa Liar.” THE CANADIAN PRESS/HO, Janis Irwin *MANDATORY CREDIT*
Alberta Premier slams vandalism after slur painted on MLA’s office window

Edmonton MLA Janis Irwin posted pictures showing the front window spray-painted with the words ‘Antifa Liar’

A helicopter flies past a mountain near McBride, B.C., on Saturday January 30, 2016. THE CANADIAN PRESS/Darryl Dyck
Avalanche warning for backcountry users in North and South Rockies

Avalanche Canada is urging backcountry users to always check their regional avalanche forecasts

Most Read