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.
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.