Precision Drilling Q3 Loss Wider Than Estimates; Revenue Down 45%

(RTTNews) - Precision Drilling Corp. (PD.TO, PDS) reported a third-quarter net loss of C$47 million, or C$0.16 per share, compared to a loss of C$87 million, or C$0.30 per share, in the third quarter of 2015. On average, 15 analysts polled by Thomson Reuters expected the company to report a loss per share of C$0.15 for the quarter. Analysts' estimates typically exclude special items.

The company noted that, during the third quarter of prior year, significant decreases in industry activity resulting from the decline in oil and natural gas prices and its impact on current and future business were indicators of impairment in some of the cash generating asset groups resulting in an after tax impairment charges of C$74 million, or C$0.25 per share. For the third quarter of 2016, adjusted EBITDA was C$41 million, 63% lower than the third quarter of 2015. The company said the decrease in adjusted EBITDA as a percent of revenue was mainly due to decreased activity in all of its businesses and lower spot market pricing.

Third-quarter revenue was C$202 million or 45% lower than the third quarter of 2015, mainly due to decreased activity in all of the company's operations. Revenue from Contract Drilling Services and Completion and Production Services segments decreased over the comparative prior year period by 45% and 44%, respectively. Analysts expected revenue of C$160.32 million, for the quarter.