2 weeks Ago By Meghan Potkins
made a “strategic purchase” of drill pipe from China in the second half of the year in a move timed to come before went into effect, the company said on Tuesday while announcing a modest boost to its capital budget for the year. Canada’s decision to on imports of steel and aluminum products from China, including drill pipe, is expected to raise costs in the sector. The policy came into effect on Oct.
22. Precision, Canada’s largest drilling rig contractor, said it increased its capital budget to $210 million for 2024, up from the $195 million the company had planned to spend, in part to purchase extra drill pipe from China for use next year. The Calgary-based company said it earned a profit of $39 million in the third quarter, nearly double the $20 million posted in the same period last year.
Precision said revenue from increased activity in Canada and internationally in the third quarter more than offset lower demand in the United States. It posted revenues of $477 million, compared to $447 million in the same quarter of 2023. rose 25 per cent year over year, the company said, averaging 72 active drilling rigs in the quarter versus 57 a year ago.
U.S. activity dropped to an average of 35 drilling rigs compared to 41 in the same period last year.
Eight drilling rigs were fully contracted internationally this year following rig reactivations in 2023. Precision chief executive Kevin Neveu said increased takeaway capacity from Western Canada is strengthening Canadian fundamentals for heavy oil, condensate and liquefied natural gas (LNG)..
