Drilling rig contractor’s profit doubles as Canadian oilfield activity jumps 25%
Precision, Canada’s largest drilling rig contractor, said it increased its capital budget to $210 million for 2024, up from the $195 million the company had planned to spend, in part to purchase extra drill pipe from China for use next year.
The Calgary-based company said it earned a profit of $39 million in the third quarter, nearly double the $20 million posted in the same period last year.
Precision said revenue from increased activity in Canada and internationally in the third quarter more than offset lower demand in the United States. It posted revenues of $477 million, compared to $447 million in the same quarter of 2023.
U.S. activity dropped to an average of 35 drilling rigs compared to 41 in the same period last year. Eight drilling rigs were fully contracted internationally this year following rig reactivations in 2023.
Precision chief executive Kevin Neveu said increased takeaway capacity from Western Canada is strengthening Canadian fundamentals for heavy oil, condensate and liquefied natural gas (LNG).