Precision Drilling(US:PDS)2025-07-30 20:30Financial Performance - Total revenue for Q2 2025 was $406,615, a decrease of 5.5% compared to $429,214 in Q2 2024[3] - Net earnings for Q2 2025 were $16,487, down 20.5% from $20,701 in Q2 2024[5] - Comprehensive income for Q2 2025 was a loss of $21,951 compared to a gain of $26,301 in Q2 2024[5] - Net earnings for the period ending June 30, 2025, were $51,434,000, compared to $57,217,000 for the same period in 2024, reflecting a decrease of approximately 10.5%[8] - Total revenue for the six months ended June 30, 2025, was $902,946,000, an increase from $957,002,000 in the same period of 2024, indicating a decline of about 5.6%[18] - Total revenue for the three months ended June 30, 2025, was $406.615 million, a decrease from $429.214 million in the same period of 2024, representing a decline of approximately 5.9%[22] - Net earnings for reportable segments for the three months ended June 30, 2025, were $16.487 million, compared to $20.701 million in the same period of 2024, reflecting a decrease of about 20.5%[23] - The company reported earnings before income taxes of $108.100 million for the three months ended June 30, 2025, down from $115.121 million in the same period of 2024, a decline of approximately 6.5%[22] - The net earnings attributable to shareholders for the three months ended June 30, 2025, were $16.267 million, compared to $20.701 million in 2024, reflecting a decrease of approximately 21.8%[40] Assets and Liabilities - Total current assets decreased to $411,030 from $501,284 as of December 31, 2024, representing a decline of 18%[1] - Total liabilities increased to $1,077,637 from $1,274,316, a reduction of 15.4%[1] - Long-term debt decreased to $546,429 from $812,469, a reduction of 32.7%[1] - The total assets as of June 30, 2025, amounted to $2.742 billion, a decrease from $2.915 billion as of June 30, 2024, indicating a reduction of approximately 5.9%[24] - The total long-term debt as of June 30, 2025, was $682.610 million, which includes $680.905 million in unsecured senior notes and $10 million in senior credit facilities[25] - The balance of shareholders' equity as of June 30, 2025, was $1,665,200,000, down from $1,681,999,000 at the beginning of the year[8] - The total liability for share-based compensation plans was $23.710 million, down from $57.858 million at December 31, 2024[30] Cash Flow and Capital Expenditures - Cash provided by operations for Q2 2025 was $147,495, compared to $174,075 in Q2 2024, a decrease of 15.2%[6] - Cash at the end of the period was $46,698, down from $73,771 at the beginning of the period[6] - Capital expenditures for the six months ended June 30, 2025, were $112.738 million, compared to $93.950 million for the same period in 2024, showing an increase of about 20%[24] Shareholder Activities - The company reported a share repurchase of $40,921,000 during the period, contributing to a decrease in shareholders' equity[8] - Precision repurchased and cancelled a total of 646,058 common shares for $45 million during the period ended June 30, 2025, compared to 366,214 shares for $34 million in 2024[38] - The company recorded a liability of $5 million for share repurchases estimated to occur during the blackout period as of June 30, 2025[39] - The total number of outstanding Restricted Share Units (RSUs) as of June 30, 2025, was 135,313, down from 179,760 at December 31, 2024[31] Market and Operational Insights - Revenue from Contract Drilling Services in Canada for the three months ended June 30, 2025, was $175,028,000, up from $163,429,000 in 2024, representing an increase of approximately 7.7%[18] - The total revenue from the United States for the six months ended June 30, 2025, was $260,149,000, a decrease from $308,043,000 in the same period of 2024, reflecting a decline of approximately 15.5%[19] - The company experienced a significant impact from seasonal factors, with late March through May traditionally being the slowest period due to weather conditions affecting operations in Canada[20] - The company continues to focus on its two reportable segments: Contract Drilling Services and Completion and Production Services, which are essential for its operational strategy[21] Other Financial Metrics - Basic net earnings per share attributable to shareholders was $1.21, down from $1.44 in Q2 2024, a decline of 16%[3] - Other comprehensive income for the period was a loss of $39,631,000, which negatively impacted the overall equity position[8] - The fair value of unsecured senior notes at June 30, 2025, was approximately $674 million, down from $801 million at December 31, 2024[41] - The weighted average shares outstanding for diluted earnings per share for the six months ended June 30, 2025, was 14,158, a slight decrease from 14,402 in 2024[40] - As of June 30, 2025, Precision's consolidated senior debt to consolidated covenant EBITDA ratio was 0.03, well below the covenant limit of 2.50[28] - The finance charges for the three months ended June 30, 2025, were $14.857 million, an increase from $18.189 million in the same period of 2024, indicating a decrease of approximately 18.3%[23]