Precision Drilling posts first loss in two years on charges
(Reuters) - Precision Drilling Corp (PD.TO: Quote), Canada's largest oil and gas drilling contractor, posted a fourth-quarter loss, its first in nine quarters, as it recorded charges related to decommissioning of some of its less-efficient rigs.
The net loss was C$116 million ($115.7 million), or 42 Canadian cents per share, compared with a profit of C$28 million, or 10 Canadian cents per share, a year earlier.
Revenue rose 9 percent to C$534 million.
Precision, which operates about a quarter of Canada's onshore drilling rigs, has been affected by a decline in drilling for natural gas.
The Calgary-based company said it recorded an impairment charge of C$192 million in the quarter ended December 31 related to the decommissioning of 52 lower-tier drilling rigs.
The company also expects capital expenditure of C$526 million this year, down from the C$868 million it spent last year.
Drilling for natural gas has mostly been in decline for more than a year - the count is down nearly 55 percent since peaking in 2011 at 936.
Precision's shares closed at C$9.01 on the Toronto Stock Exchange on Wednesday. They have lost about a fifth of their value over the past 12 months.
(Reporting by Shounak Dasgupta in Bangalore; Editing by Maju Samuel)
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