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