Precision Drilling reports Q1 loss, revenue up nearly 50%

Precision Drilling Corp. reported a first-quarter loss as its revenue rose by nearly 50 per cent compared with a year ago, boosted by growing demand for its services.

The company also said it is increasing its 2022 capital spending plan to $125 million in response to higher demand and customer contracted rig upgrades.

Precision Drilling had said in February it expected to spend $98 million this year.

For the quarter ended March 31, the company lost $43.8 million or $3.25 per diluted share compared with a loss of $36.1 million or $2.70 per diluted share in the first quarter of 2021.

Revenue for the three-month period totalled $351.3 million, up from $236.5 million.

The increase came as drilling rig utilization days for the quarter increased 56 per cent in the U.S. and 48 per cent in Canada and well service activity gained 10 per cent compared with the first quarter of 2021.