CALGARY — Precision Drilling Corp. has raised its debt-reduction target for 2019 to $200 million as a result of unexpectedly strong cash flow in the second quarter.
The oilfield services company says improved pricing and cost control have allowed it to reduce debt by $124 million to date this year, faster than anticipated in its previous guidance of between $100 million and $150 million for the full year.
Calgary-based Precision Drilling’s overall financial conditions in the second quarter were improved from the same time last year.
Its net loss was reduced to $13.8 million or five cents per diluted share, from a year-earlier loss of $47.2 million or 16 cents per share in the second quarter of 2018.
Revenue increased by nine per cent to $359 million, from $330.7 million.
Besides higher revenue, Precision Drilling’s second-quarter profit benefited from lower administration and restructuring expenses and lower depreciation and amortization, two non-cash expense items.
Companies in this story: (TSX:PD)
The Canadian Press
Note to readers: This is a corrected story. A previous version said the guidance range for debt reduction was between $100 million and $500 million.