Precision Drilling reports Q1 loss, revenue down, five contracts cancelled

CALGARY – Precision Drilling Corp. (TSX:PD) reported a loss of $19.9 million in its latest quarter compared with a profit of $24.0 million a year ago.

The oilfield services company says the loss amounted to seven cents per share for the quarter ended March 31 compared with a profit of eight cents in the same quarter last year.

Revenue this quarter totalled $301.7 million down from $512.1 million in the first quarter of 2015, mainly due to lower drilling activity in the U.S., Canada and internationally.

The company says revenue from its contract drilling services and completion and production services segments both fell by 39 per cent and 57 per cent, respectively.

During the quarter, Precision Drilling says it received $23 million in one-time contract cancellation payments in connection with five contracts.

The company says it has been hit by a total of nine contract cancellations since the start of the downturn, which began in late 2014.