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Highlights

  • Precision Drilling’s Q3 2024 net revenue rose 6.8% to CAD 477.1 million, despite lower activity in the US
  • Operating income increased 24.4% to CAD 142.4 million, driven by higher revenue
  • Net earnings nearly doubled to CAD 39.1 million, marking 98.5% growth year-over-year

Precision Drilling Corporation (TSX: PD), a North American provider of oil and gas services, has a market capitalization of CAD 1.25bn.

In Q3 2024, the company reported net revenue of CAD 477.1 million, a 6.8% increase from CAD 446.7 million in the previous corresponding period (pcp). This growth was partly offset by decrease in activity in the U.S.

Operating income for the quarter rose by 24.4% to CAD 142.4 million, up from CAD 114.5 million in pcp. This increase was largely due to higher revenue, though it was partially offset by rising expenses. Earnings before taxes jumped 92.0%, reaching CAD 53.0 million, compared to CAD 27.6 million in Q3 2023. As a result, the company posted net earnings of CAD 39.1 million, nearly double the CAD 19.7 million reported in pcp.

Recent Business Update

Company Outlook

The company maintains a positive outlook, driven by the expected growth in U.S. LNG projects. Over the next three years, these projects are set to add around 12 bcf/d of export capacity, which is anticipated to stimulate further natural gas drilling activity in the U.S.

Top 10 Shareholders:

The top 10 shareholders of Precision Drilling collectively own about 40.78% of the company’s shares. Ninepoint Partners LP holds the largest stake at approximately 8.18%, followed by National Bank of Canada with around 5.09%.

Stock Information

 The stock price of PD has witnessed a surge of 4.55% and 2.55% over the last 1 week and 1 month respectively. As of November 11, 2024, the stock’s closing price is CAD 89.20, which is above the average of its 52-week high price of CAD 109.20 and 52-week low price of CAD 67.46.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 11, 2024. The reference data in this report has been partly sourced from EODHD/Others.