Precision Drilling cuts capex spending, but sees strengthening demand

CALGARY – Precision Drilling Corp. (TSX:PD) says it plans to spend $109 million on capital expenditures in 2017, down from $213 million this year.

The spending plans comes as the company says it sees signs of strengthening demand for its services.

Chief executive Kevin Neveu says recent actions to stabilize and improve commodity prices appear to be well received by his customers.

The energy services company says the spending plan for next year includes $105 million on its contract drilling services business and $4 million for its completion and production services operations.

The plan includes the upgrade of 33 Super Triple rigs in North America and long lead items for additional future upgrades.

The forecast for $213 million to be spent this year is down from earlier guidance of $222 million.