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Precision Drilling Announces 2025 Second Quarter Unaudited Financial Statements
@Source: financialpost.com
Revenue in the second quarter was $407 million and included $7 million for customer-funded upgrades. While Canadian drilling activity and day rates increased over the same period last year, revenue decreased $23 million from the second quarter of 2024 primarily due to U.S. and international drilling activity declining 6% and 7%, respectively, and well service activity falling 23%.
Adjusted EBITDA was $108 million compared to $115 million in the second quarter of 2024, primarily due to lower activity impacting revenue offset in part by lower share-based compensation expense, which was $4 million versus $10 million in the same period last year. For additional information on share-based compensation please refer to “Other Items” later in the this news release.
Adjusted EBITDA as a percentage of revenue(1) was 27%, consistent with the second quarter of 2024.
Net earnings attributable to shareholders was $16 million or $1.21 per share compared to $21 million or $1.44 per share for the same period last year. On a diluted basis, net earnings attributable to shareholders was $1.07 versus $1.44 in 2024. Precision has consistently delivered positive quarterly net earnings for the past three years.
Cash provided by operations was $147 million and the Company repurchased 237,085 shares for $14 million, and redeemed US$60 million of its 2026 unsecured senior notes, ending the quarter with $47 million of cash and almost $530 million of available liquidity.
In Canada, revenue per utilization day was $37,725 compared to $36,075 in the same period last year. The increase related to $7 million of revenue earned for customer funded rig upgrades, amounting to $1,440 on a daily basis.
Canadian operating costs per utilization day increased 4% to $22,419, mainly due to labor costs related to rig mix and recoverable expenses offset in revenue.
In the U.S., revenue per utilization day was US$31,113 compared to US$33,227 in the same period last year, as lower industry activity caused downward pressure on rates. In the previous quarter, U.S. revenue per utilization day was US$33,157 but included US$1,263 of idle but contracted rig revenue.
U.S. operating costs per utilization day remained consistent at US$22,087 versus US$22,427 in the second quarter of 2024. With an increasing rig count, our operating costs per utilization day included US$648 of rig reactivation charges compared to US$242 in the same period last year. In the previous quarter, U.S. operating costs per utilization day were US$23,568 and included charges for mobilization costs and rig reactivations.
Internationally, we realized revenue of US$36 million compared to US$40 million primarily due to our average active rig count, which decreased from eight to seven in the second quarter of 2025 as one rig was temporarily suspended in Saudi Arabia. We expect to have seven rigs active for the rest of the year.
Completion and Production Services revenue was $54 million, a decrease of $12 million from 2024, as service rig operating hours declined 23%. This reduction was the result of customer driven project deferrals, the impact of weather, and lower U.S. activity as we wound down our U.S. well servicing operations, selling certain assets and mobilizing others into Canada. Adjusted EBITDA was $10 million, representing 18% of revenue and comparable to 19% in 2024.
General and administrative expenses were $25 million versus $29 million in the second quarter of 2024, primarily due to lower share-based compensation expense.
Capital expenditures were $53 million compared to $38 million in the second quarter of 2024 and included $26 million for the maintenance of existing assets, infrastructure, and intangible assets and $27 million for expansion and upgrades.
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