Thursday June 25, 3:30 pm Eastern Time
Company Press Release
SOURCE: Precision Drilling Corporation
Precision Drilling Corporation Year End Results - April 30, 1998
CALGARY, June 25 /CNW-PRN/ - Precision Drilling Corporation is pleased to report their financial results for the year
ended April 30,1998.
The Corporation exited the year with a 99% increase in total assets, a 122% increase in revenue, a 177% increase in net
earnings, and a 281% increase in funds generated from operations.
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
CONSOLIDATED STATEMENTS OF EARNING AND RETAINED EARNINGS
Unaudited Audited
Three Months Ended Twelve Months Ended
April 30, April 30,
CDN $000's, except per
share amounts 1998 1997 1998 1997
-------------------------------------------------------------------------
Revenue 238,433 148,456 1,012,503 455,037
Expenses:
Operating 145,182 100,511 620,265 314,934
General and administrative 16,171 10,320 59,329 29,366
Depreciation and
amortization 14,179 8,514 71,744 25,179
-------------------------------------------------------------------------
175,532 119,345 751,338 369,479
-------------------------------------------------------------------------
Operating earnings 62,901 29,111 261,165 85,558
Interest (4,545) (1,664) (17,093) (3,939)
Dividend income - - 1,923 653
-------------------------------------------------------------------------
Earnings before income taxes 58,356 27,447 245,995 82,272
Income taxes
Current 6,557 7,294 29,210 31,294
Deferred 24,507 6,635 99,260 8,619
-------------------------------------------------------------------------
31,064 13,929 128,470 39,913
-------------------------------------------------------------------------
Net earnings 27,292 13,518 117,525 42,359
Retained earnings,
beginning of period 185,339 83,840 97,358 54,999
Adjustment on purchase and
cancellation of share capital (5,712) - (7,598) -
Dividends on preferred shares - - (366) -
-------------------------------------------------------------------------
Retained earnings,
end of period 206,919 97,358 206,919 97,358
-------------------------------------------------------------------------
Earnings per share
Basic 0.65 0.42 2.82 1.44
Fully diluted 0.64 0.41 2.67 1.36
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
Audited
CDN $000's as at April 30,
-------------------------------------------------------------------------
1998 1997
Assets
Current assets:
Cash 41,446 470
Accounts receivable 214,620 123,433
Inventory 36,678 29,485
-------------------------------------------------------------------------
292,744 153,388
Property, plant and equipment, at
cost less accumulated depreciation 643,695 328,503
Goodwill, net of accumulated
amortization of $14,583;
1997 - $3,401 209,042 71,407
Investments 41,972 49,540
Deferred financing costs, net of
amortization of $943 9,977 -
-------------------------------------------------------------------------
1,197,430 602,838
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current Liabilities:
Bank indebtedness - 1,012
Accounts payable and accrued
liabilities 107,597 66,149
Income taxes payable 5,702 19,429
Current portion of long-term debt 27,490 27,002
-------------------------------------------------------------------------
140,789 113,592
Long-term debt 214,554 96,305
Deferred income taxes 145,517 39,554
Shareholders' equity:
Share capital 489,651 256,029
Retained earnings 206,919 97,358
-------------------------------------------------------------------------
696,570 353,387
-------------------------------------------------------------------------
1,197,430 602,838
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SEGMENT INFORMATION
Twelve Months Ended
April 30,
CDN $000's 1998 1997
-------------------------------------------------------------------------
Revenues
Contract Drilling 690,299 215,422
Oilfield Specialty Services 57,565 39,137
Industrial and Rental 264,639 200,478
-------------------------------------------------------------------------
Total revenues 1,012,503 455,037
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating Earnings
Contract Drilling 206,528 45,422
Oilfield Specialty Services 8,648 5,936
Industrial and Rental 45,989 34,200
-------------------------------------------------------------------------
Total operating earnings 261,165 85,558
-------------------------------------------------------------------------
OPERATING
For the twelve months ended April 30,
1998 1997
Market Market
Precision Industry Share% Precision Industry Share%
Number of
drilling rigs 207 568 36.4 101 468 21.6
Number of
operating days
(Spud to release) 51,156 129,237 39.6 20,448 105,192 19.4
Wells drilled 6,067 15,666 38.7 3,428 14,144 24.2
Metres drilled
(000's) 7,589 18,629 40.7 3,661 15,607 23.5
Rig utilization
rate (%) 69.2 68.7 63.6 62.7
>>
The Corporation remains optimistic on the long-term industry fundamentals and believes the requirement for natural gas drilling
in anticipation of the increased take-away capacity is expected to more than offset any decrease in heavy oil drilling.
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. |
