UPDATE 1-Precision Drilling posts smaller-than-expected quarterly loss

Published 2017-07-31, 06:31 a/m
© Reuters.  UPDATE 1-Precision Drilling posts smaller-than-expected quarterly loss
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July 31 (Reuters) - Canadian rig contractor Precision Drilling Corp PD.TO reported a smaller-than-expected quarterly loss on Monday, helped by higher oil prices that drove strong demand from North America and the Middle East.

As global crude prices have risen, oil and gas companies have been putting more rigs to work. Brent crude prices LCOc1 averaged $50.79 per barrel in the second quarter of the year, up 8 percent from 2016.

Precision Drilling's U.S. rig count rose to 59 in the second quarter ended June 30, up from 24 rigs a year earlier. The company had 29 active rigs in Canada, up from 13 rigs a year earlier.

The company's net loss narrowed to C$36.1 million ($29 million), or 12 Canadian cents per share in the second quarter ended June 30, from C$57.7 million, or 20 Canadian cents per share, a year earlier. rose to C$275.5 million from C$164 million.

Analysts on average had expected a loss of 20 Canadian cents and revenue of C$272.3 million, according to Thomson Reuters I/B/E/S. ($1 = 1.2468 Canadian dollars)

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