Highlights

  • Service rig utilization in Canada declined to 24%, with revenue per Service Hour CAD 950.
  • Nine-month revenue totaled CAD 159.1M, with Adjusted EBITDA rising to CAD 33.0M.
  • Adjusted EBITDA for Q3 2025 increased 14% to CAD 13.1M year-on-year.

Western Energy Services Corp. (TSX:WRG) released its financial and operational results for the third quarter ended September 30, 2025. The company reported revenue of CAD 50.0M, a 14% decrease from CAD 58.3M in Q3 2024, reflecting reduced activity across both contract drilling and well servicing segments.

Adjusted EBITDA increased 14% year-on-year to CAD 13.1M, compared with CAD 11.4M in the same quarter of 2024. The improvement was attributed to cost efficiencies and the absence of one-time reorganization costs, which had totalled CAD 0.6M in the prior year.

Net loss for the quarter was CAD 2.2M (CAD 0.07 per share), compared with a loss of CAD 1.2M (CAD 0.04 per share) in Q3 2024. The higher loss was primarily due to increased depreciation and a CAD 3.0M higher loss on the sale of fixed assets, partially offset by stronger Adjusted EBITDA, lower finance costs, and higher income tax recovery.

Additions to property and equipment were CAD 5.5M in Q3 2025, compared with CAD 8.2M in Q3 2024, including CAD 2.1M in expansion capital for rig upgrades and CAD 3.4M in maintenance capital.

Operational Highlights

In Canada, Operating Days totalled 1,022, down 8% from 1,115 in Q3 2024, as weak commodity prices affected drilling programs. Drilling rig utilization was 33%, compared with 36% in the prior year. Revenue per Operating Day averaged CAD 30,425, a 2% decline year-on-year.

In the United States, drilling rig utilization averaged 24%, down from 36% in Q3 2024, reflecting lower industry activity and a shift in focus from Texas to North Dakota. Revenue per Operating Day averaged USD 33,669, an 18% increase from USD 28,429 in the prior year, driven by a more favorable rig mix.

For well servicing in Canada, service rig utilization was 24%, compared with 31% in Q3 2024. Service Hours declined 21% to 9,838 hours, while revenue per Service Hour averaged CAD 950, down 3% year-on-year.

Nine-Month Summary

For the nine months ended September 30, 2025, Western reported revenue of CAD 159.1M, down 3% from CAD 163.4M in 2024. Adjusted EBITDA rose 3% to CAD 33.0M. After normalizing for one-time reorganization costs, Adjusted EBITDA totaled CAD 36.6M, up from CAD 34.7M a year earlier.

The company posted a net loss of CAD 4.4M for the nine months ended September 30, 2025, compared with CAD 4.9M in 2024. Additions to property and equipment were CAD 16.4M, compared with CAD 15.8M in the prior year.

Outlook

Western noted that commodity price volatility, global trade tensions, and geopolitical conflicts continued to impact drilling demand. However, infrastructure developments such as the Trans Mountain pipeline expansion and the LNG Canada project are expected to support future activity in the Canadian energy sector.

The company stated it remains focused on cost management, maintaining balance sheet strength, and operational flexibility. As of October 2025, 19 drilling rigs and 13 well servicing rigs were active across its operations.