Toronto, Canada – Precision Drilling, the Canadian drilling rig contractor, saw a significant increase in its shares on Tuesday morning after announcing plans to boost debt reduction and shareholder returns. The company’s strong fourth-quarter results have paved the way for a promising future.
At the time of writing, Precision Drilling shares were trading more than 10% higher in Toronto, reaching 88.02 Canadian dollars ($65.01).
Kevin Neveu, the Chief Executive, expressed confidence in the company’s performance by revealing plans to reduce debt by an additional C$100 million by the end of 2026. Furthermore, Precision Drilling aims to allocate approximately 50% of its free cash flow towards shareholder capital returns.
In the fourth quarter, the drilling rig contractor achieved a net income of C$146.7 million, equivalent to C$9.81 per share. This is a significant rise from last year’s comparable quarter figure of C$3.5 million or C$0.27 per share.
Although revenue experienced a slight decline from C$510.5 million to C$506.9 million, it still exceeded analysts’ expectations. FactSet reported analysts predicting a steeper decline to C$489.5 million.
Precision Drilling’s impressive performance not only reinforces its position in the market but also ensures a positive trajectory for investors. With a clear focus on reducing debt and maximizing shareholder returns, the company’s future prospects are promising.
