Precision Drilling Corporation Second Quarter Results - October 31, 1999
PR Newswire - December 09, 1999 15:53
CALGARY, Dec. 9 /CNW-PRN/ - Precision Drilling Corporation is pleased to report their unaudited financial results for the three and six months ended October 31, 1999.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
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Three Months Ended Six Months Ended
October 31, October 31,
CDN $000's, except per share amounts
(unaudited) 1999 1998 1999 1998
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Revenue $ 215,649 $ 170,003 $ 331,507 $ 350,139
Expenses:
Operating 146,662 112,111 232,045 232,592
General and administrative 15,106 14,442 25,537 27,346
Depreciation and amortization 23,659 17,850 40,561 36,198
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185,427 144,403 298,143 296,136
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Operating earnings 30,222 25,600 33,364 54,003
Interest (4,615) (5,355) (8,218) (9,800)
Gain on disposal of investment 1,170 - 1,170 9,705
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Earnings before income taxes 26,777 20,245 26,316 53,908
Income taxes:
Current 16,678 24,022 13,353 32,619
Deferred (1,884) (12,951) 3,347 (10,118)
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14,794 11,071 16,700 22,501
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Net earnings 11,983 9,174 9,616 31,407
Retained earnings,
beginning of period 257,933 229,152 260,300 206,919
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Retained earnings,
end of period $ 269,916 $ 238,326 $ 269,916 $ 238,326
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Earnings per share
Basic $0.26 $0.22 $0.21 $0.75
Fully diluted $0.26 $0.22 $0.21 $0.72
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Shares outstanding 47,142 42,075
Weighted averages shares outstanding (000's) 45,110 42,005
Fully diluted shares outstanding (000's) 48,539 45,323
CONSOLIDATED BALANCE SHEETS
Unaudited Audited
CDN $000's at October 31, at April 30,
1999 1999
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Assets
Current assets:
Cash $ 24,126 $ 5,620
Investment in short-term commercial paper - 96,947
Accounts receivable 202,828 127,891
Income taxes recoverable 24,994 -
Inventory 53,175 30,701
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305,123 261,159
Property, plant and equipment, at cost less
accumulated depreciation 760,199 683,548
Goodwill, net of amortization of
$35,196; April 30, 1999 - $27,230 306,130 259,779
Investments 13,197 34,380
Deferred financing costs, net of amortization of
$2,653; April 30, 1999 - $2,070 8,588 8,850
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$ 1,393,237 $ 1,247,716
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Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ - $ 6,445
Accounts payable and accrued liabilities 113,558 74,680
Income taxes payable - 72,139
Current portion of long-term debt 6,465 16,734
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120,023 169,998
Long-term debt 272,301 215,014
Deferred income taxes 103,403 94,393
Shareholders' equity:
Share capital 627,594 508,011
Retained earnings 269,916 260,300
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897,510 768,311
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$ 1,393,237 $ 1,247,716
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SEGMENT INFORMATION
Three Months Ended,
October 31,
CDN $000's (unaudited) 1999 1998
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Revenues
Contract Drilling Services $ 97,094 $ 70,360
Oilfield Specialty Services 65,512 25,862
Rental and Production Services 53,043 73,781
Corporate - -
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Total Revenues $ 215,649 $ 170,003
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Operating Earnings
Contract Drilling Services $ 20,034 $ 11,687
Oilfield Specialty Services 3,864 2,390
Rental and Production Services 8,769 13,086
Corporate (2,445) (1,563)
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Total Operating Earnings $ 30,222 $ 25,600
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Six Months Ended,
October 31,
CDN $000's (unaudited) 1999 1998
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Revenues
Contract Drilling Services $ 147,500 $ 157,637
Oilfield Specialty Services 87,985 49,264
Rental and Production Services 96,022 143,238
Corporate - -
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Total Revenues $ 331,507 $ 350,139
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Operating Earnings
Contract Drilling Services $ 23,649 $ 24,073
Oilfield Specialty Services 2,453 4,350
Rental and Production Services 11,242 28,076
Corporate (3,980) (2,496)
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Total Operating Earnings $ 33,364 $ 54,003
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OPERATING
For the Six Months Ended October 31,
1999 1998
Market Market
Precision Industry Share Precision Industry Share
% %
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Number of drilling rigs 212 585 36 214 577 37
Number of operating days
(Spud to release) 12,330 36,194 34 11,847 34,659 34
Wells drilled 1,976 6,477 31 1,150 4,160 28
Metres drilled (000's) 2,157 6,613 33 1,592 5,012 32
Rig utilization rate (%) 32 35 30 33
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Currently the Corporation has crewed 170 of its 212 drilling rigs and expects to be working close to full capacity during the upcoming winter drilling season. Demand for our other services is expected to follow industry drilling activity. The outlook for drilling and other services subsequent to spring break up will depend on commodity price expectations and the availability of capital to exploration and production companies.
This document contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, national and regional economic conditions, oil and gas prices, weather conditions and the ability of oil and gas companies to raise capital or other unforeseen conditions which could impact on the use of services supplied by the Corporation.
Precision Drilling Corporation is listed on The Toronto Stock Exchange under the ticker symbol PD and on the New York Stock Exchange under the ticker symbol PDS.
SOURCE Precision Drilling Corporation
Not too bad.
Jack |
