SERVICE SECTOR / Precision Drilling reports 1st 6 months Results
CALGARY, Dec. 15 /CNW/ - The combination of the various acquisitions in
the Oilfield Services business have generated a dramatic impact upon the
financial performance of Precision Drilling Corporation.
Effective September 30, 1997, the Corporation split its common shares on
a two for one basis and all per share amounts have been stated given effect to
the split.
Financial Highlights
CONSOLIDATED INCOME STATEMENT
Three months ended Six months ended
October 31 October 31
'000's CDN (unaudited) 1997 1996 1997 1996
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Revenue $255,433 $108,814 $478,820 $183,757
Expenses:
Operating 150,881 76,616 295,159 129,234
General and
administrative 12,852 5,806 25,636 11,720
Depreciation and
amortization 20,981 5,560 38,700 9,473
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184,714 87,982 359,495 150,427
Operating earnings 70,719 20,832 119,325 33,330
Interest (4,621) (1,105) (8,014) (2,073)
Dividend income -- -- 1,923 653
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Earnings before income
taxes 66,098 19,727 113,234 31,910
Income taxes:
Current (2,302) 9,347 19,477 14,251
Deferred 37,019 81 38,225 525
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34,717 9,428 57,702 14,776
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Net earnings 31,381 10,299 55,532 17,134
Retained earnings,
beginning of period 121,295 61,834 97,358 54,999
Dividends on preferred shares (61) -- (275) --
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Retained earnings,
end of period 152,615 72,133 152,615 72,133
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Earnings per share:
Basic 0.75 0.37 1.34 0.63
Fully diluted 0.70 0.34 1.25 0.59
CONSOLIDATED BALANCE SHEET
October 31,
1997 1996
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Assets
Current assets:
Cash $1,861 $420
Accounts receivable 257,222 91,163
Inventory 26,966 23,589
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286,049 115,172
Investments 43,530 4,324
Property, plant and equipment,
at cost less accumulated depreciation 616,960 210,473
Deferred financing costs,
net of amortization of $377 10,543 --
Goodwill, net of accumulated amortization
of $9,034: 1996 - $1,619 216,304 72,338
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1,173,386 402,307
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Liabilities and shareholders' Equity
Current Liabilities:
Bank indebtedness $52,300 6,634
Accounts payable and accrued liabilities 116,137 42,925
Income taxes payable 12,920 9,825
Current portion of long-term debt 27,484 27,622
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208,841 87,006
Long-term debt 228,252 42,781
Deferred income taxes 84,482 25,332
Shareholders' equity:
Share capital 499,196 175,055
Retained earnings 152,615 72,133
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651,811 247,188
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1,173,386 402,307
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Operating Highlights
For the six months ended October 31,
1997 1996
Market Market
Precision Industry Share % Precision Industry Share %
Drilling rigs 203 528 38 85 473 18
Operating
days 25,672 63,836 40 8,604 44,792 19
Wells
drilled 3,300 8,685 38 1,544 6,661 23
Metres
drilled
(000's) 3,999 9,792 41 1,625 7,289 22
Rig utilization
rate (%) 70 71 55 47
The Corporation remains optimistic on the long-term industry fundamentals
including the need for heavy oil development for the future.
Precision Drilling Corporation is listed on The Toronto Stock Exchange
under the ticker PD and on the New York Stock Exchange under the ticker symbol
PDS. |
