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Precision Drilling shares jump on earnings beat despite lower revenue


CALGARY — Shares in Precision Drilling Corp. jumped by 10 per cent on the Toronto Stock Exchange Thursday after it reported fourth-quarter revenue and earnings that beat expectations.

The Calgary-based driller says it had a net loss of $1.06 million on revenue of $372 million in the three months ended Dec. 31, compared with a net loss of $198 million (mainly due to a goodwill writedown) on revenue of $427 million in the same period of 2018.

The figures beat analyst expectations of a net loss of $16.6 million on revenue of $357 million, according to financial markets data firm Refinitiv.

In early trading, Precision shares rose by as much as 17 cents to $1.83. Their 52-week high of $4.06 was set last April.

The company's 13 per cent decline in revenue was blamed on lower oil and gas drilling activity in both Canada and the United States, offset by higher activity in its international operations.

It reported a net after-tax loss of $15 million in the quarter due to decommissioning drilling and other equipment that no longer meets technology standards.

This report by The Canadian Press was first published Feb. 13.

Companies in this story: (TSX:PD)

The Canadian Press