Canada’s Precision Drilling saw its net take a dive
Canada’s Precision Drilling saw its net earnings fall 15% in the third quarter, primarily due to higher foreign exchange gain recorded last year.
Upstream staff 21 October 2010 11:59 GMT
The company said net earnings fell to C$61.1 million (US$59.84 million), or 21 Canadian cents per share, from C$71.7 million, or 25 Canadian cents in the same quarter last year.
The earnings included foreign exchange gain of C$18 million, compared with C$63 million last year.
The company was expected to post a profit of 9 Canadian cents per share, the average of analysts estimates compiled by Thomson Reuters.
Drilling activity in Canada and the US has risen from recessionary lows as petroleum companies look to tap unconventional natural gas deposits like shale fields, while oil prices are relatively strong.
Precision, which converted its business from a trust to a corporation earlier this year, said revenue rose 42% to C$359.15 million from C$253.3 million in the year-earlier period.
Precision Drilling expects to have an average of about 96 rigs committed under term contracts in North America in the fourth quarter.
Precision shares closed at C$7.52 on the Toronto Stock Exchange on Wednesday, mostly unchanged from a year ago.