By Adriano Marchese

Precision Drilling shares rose in early trading Wednesday after reporting strong third-quarter profit on the back of strong activity in Canada and internationally.

Shares traded 6.6% higher at 84.71 Canadian dollars ($60.88).

The Canadian oil and gas drilling rig company late Tuesday reported revenue of C$477 million, up from C$447 million a year earlier. The rise was still short of analyst expectations, which had pegged the figure at C$496.7 million.

Canada's activity increased 25%, averaging 72 active drilling rigs compared with 57 in the a year earlier, and noted that the company's Super Triple and Super Single rigs are in high demand and approaching full utilization.

On the international front, activity increased 33%, with eight drilling rigs fully contracted this year following rig reactivations in 2023.

These offset sluggish performance in the U.S. where activity fell, averaging 35 drilling rigs compared to 41.

Net earnings climbed to C$39.2 million, almost doubling from C$19.8 million in the prior-year period. On a per-share basis, this came to C$2.31, compared with C$1.45. According to analysts, forecasts were for C$2.24 a share.

Looking ahead, Chief Executive Kevin Neveu said the company expect strong customer demand and utilization to continue well beyond 2025 thanks to producers who are accelerating heavy oil and condensate drilling plans.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 30, 2024 10:29 ET (14:29 GMT)

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