Canada's Precision Drilling swings to Q3 profit as year-ago U.S. deferred tax expense falls away
PDS•PDS•PDS•PDS•Precision Drilling reported Q3 net earnings of C$21.29 million, reversing a year-ago loss, while revenue rose 15% to C$531.65 million and beat the C$523.42 million analyst consensus. Adjusted EBITDA grew 6%, and the company gave Q4 operating-margin ranges for Canada and the United States.
Precision Drilling's Q3 revenue rose 15% to C$531.65 million, above analyst expectations of C$523.42 million. Net earnings attributable to shareholders were C$21.29 million, reversing a loss in the year-ago quarter. Adjusted EBITDA increased 6% as stronger North American activity was partly offset by higher U.S. reactivation costs.
The company said higher rig utilization and robust heavy oil activity in Canada, along with an increased U.S. rig count and day rates, drove revenue growth. Lower international margins and non-billable days reduced segment results. Precision Drilling expects Q4 Canadian operating margins of C$13,500-C$14,500 per utilization day and U.S. margins of US$9,500-US$10,500 per utilization day.
