Stock Monitor: CGG Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 22, 2018 / If you want access to our free earnings report on Precision Drilling Corp. (NYSE: PDS), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PDS. The Company reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The Canadian rig contractor's net loss narrowed on a y-o-y basis. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
During Q1 2018, Precision Drilling's revenues were C$401.0 million, which came in 9% higher than C$368.7 million in Q1 2017. The increase in revenues was primarily the result of higher activity in the Company's US contract drilling business.
During Q1 2018, Precision Drilling's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) grew 15% to C$97.5 million compared to C$84.3 million in Q1 2017. The Company's adjusted EBITDA as a percentage of revenues was 24% in the reported quarter compared to 23% in the prior year's same quarter. The increase in adjusted EBITDA as a percent of revenues was mainly due to higher average day rates in Canada; fixed costs spread over higher activity in the US, and lower average daily operating costs in the US and internationally.
For Q1 2018, Precision Drilling's operating earnings were C$10 million compared to an operating loss of C$13 million in Q1 2017. The Company's operating earnings for the reported quarter were positively impacted by the increase in activity in its US contract drilling business and lower depreciation expenses.
Precision Drillings' net loss was C$18 million, or C$0.06 loss per share, in Q1 2018 compared to a net loss of C$23 million, or C$0.08 loss per share, in Q1 2017.
Operating Results
In Canada, Precision Drilling's average revenue per utilization day for contract drilling rigs increased to C$22,209 in Q1 2018 from C$21,405 in Q1 2017, as higher spot market day rates more than offset fewer rigs working under higher priced legacy contracts. In the US, the Company's revenue per utilization increased to US$20,603 in Q1 2018 from US$20,555 in Q1 2017. The increase in the US revenue rate was the result of higher spot market day rates and higher turnkey revenues.
For Q1 2018, Precision Drilling's average operating costs per utilization day for drilling rigs in Canada increased to C$13,331 compared to C$12,828 in Q1 2017. The increase in average costs was due to larger average crew formations and the timing of equipment certifications. In the US, the Company's operating costs decreased to US$14,026 on a per day basis in the reported quarter versus US$15,264 in the prior year's comparable quarter, due to lower lump sum move costs and fixed costs spread over a greater number of utilization days, partially offset by turnkey work.
Precision Drilling realized revenues from international contract drilling of US$36 million in Q1 2018, in-line with the prior year's corresponding period. The Company's average revenue per utilization day in its international contract drilling business was US$50,038, in-line with the prior year's same quarter.
Segment Results
During Q1 2018, Precision Drilling's Contract Drilling Services segment's revenues were C$352.8 million, up 9% on a y-o-y basis; while its adjusted EBITDA increased 18% to C$111.0 million. The increase in revenues was primarily due to higher utilization days in the US. The segment's drilling rig utilization days in Canada (drilling days plus move days) were 6,468 in Q1 2018, up 5% on a y-o-y basis, primarily due to a decrease in industry activity resulting from lower natural gas prices. Drilling rig utilization days in the US were 5,795, or 38% higher compared to the year-ago corresponding period.
For Q1 2018, Precision Drilling's Completion and Production Services segment's revenues were up 8% to C$50.0 million on a y-o-y basis, due to higher activity in its Canada well servicing and camp and catering businesses. During Q1 2018, the segment's average service rig revenue per operating hour was C$700, or C$64 higher on a y-o-y basis. The increase was primarily the result of rig mix and higher costs associated with increased northern work which were passed through to the customer. The segment's adjusted EBITDA was almost flat at C$4.6 million on a y-o-y basis.
Cash Matters
For Q1 2018, Precision Drilling's cash flow from operations was C$38.2 million compared to C$23.3 million in Q4 2017. The Company's funds provided by operations were C$104.0 million in the reported quarter, reflecting an increase of 21% over the prior year's comparable quarter. Precision Drilling's capital expenditure was C$30 million in Q1 2018.
Stock Performance Snapshot
May 21, 2018 - At Monday's closing bell, Precision Drilling's stock was marginally up 0.25%, ending the trading session at $4.06.
Volume traded for the day: 838.09 thousand shares.
Stock performance in the last month – up 26.87%; previous three-month period – up 16.33%; past twelve-month period – up 3.84%; and year-to-date – up 34.44%
After yesterday's close, Precision Drilling's market cap was at $1.19 billion.
The stock is part of the Basic Materials sector, categorized under the Oil & Gas Equipment & Services industry. This sector was up 0.7% at the end of the session.
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