Precision Drilling Corporation reports improved first quarter outlook

Apr 11, 2001, 01:00 ET from Precision Drilling Corporation

    CALGARY, April 11 /PRNewswire/ - Precision Drilling Corporation
 ("Precision" or the "Corporation") is currently participating in a number of
 investor presentations during which management will discuss current business
 fundamentals and the outlook for the Corporation.
     An important aspect of these discussions will focus on the first quarter
 results scheduled to be released on May 9, 2001. Although at this point in
 time the results for the first quarter have not been fully consolidated,
 indications are that the strong activity experienced in the quarter will
 result in higher than expected revenue and earnings growth.
     Revenues for the first quarter are expected to be in the range of Cdn.
 $610 million, more than 59% above the amount reported in the same period last
 year. Earnings per share on a diluted basis(1) for the first quarter are
 expected to be at, or slightly above, Cdn. $1.44 or up 55% compared to the
 same period last year. This amount is 16% higher than the current consensus
 estimate of US $0.81 (Cdn. $1.24 converted at the average exchange rate for
 the quarter of 1.528) as reported on "First Call".
     In Canada, weather and the seasonality of the drilling season play a
 significant role in the Corporation's results throughout the year. For
 instance, in Canada we are now entering the normal spring break-up period when
 activity levels decrease. While weather can affect activity in the balance of
 the year, typically, drilling begins to recover in the third quarter with
 further growth in the fourth quarter. Consensus earnings as reported on "First
 Call" show an aggregate earnings figure for the remaining three quarters of
 the year of US $1.48 which at current exchange rates, and combined with the
 first quarter estimate referred to above, equates to Cdn. $3.74 for the 2001
 fiscal year. Based upon existing market conditions and normal weather
 patterns, this estimate is within the range of the Corporation's current
 expectations.
 
     Certain statements contained in this press release, including statements
 which may contain words such as "could", "should", "expect", "believe", "will"
 and similar expressions and statements relating to matters that are not
 historical facts are forward-looking statements. Such forward-looking
 statements involve known and unknown risks and uncertainties which may cause
 the actual results, performances or achievements of Precision to be materially
 different from any future results, performances or achievements expressed or
 implied by such forward-looking statements. Such factors include fluctuations
 in the market for oil and gas and related products and services, political and
 economic conditions in countries in which Precision does business, the demand
 for services provided by Precision, Precision's ability to attract and retain
 key personnel and other factors which are described in further detail in
 Precision's filings with the Securities and Exchange Commission.
 
     Precision Drilling Corporation is listed on the Toronto Stock Exchange
 under the trading symbol "PD" and on the New York Stock Exchange under the
 trading symbol "PDS".
 
     -------------------
     (1)  Reflects the adoption of the treasury stock method of calculating
     diluted earnings per share in accordance with recently revised Canadian
     generally accepted accounting principles. Accordingly, comparative
     amounts have been restated changing diluted earnings per share for the
     three months ended March 31, 2000 to Cdn. $0.93 from $0.90.
 
 
 

SOURCE Precision Drilling Corporation
    CALGARY, April 11 /PRNewswire/ - Precision Drilling Corporation
 ("Precision" or the "Corporation") is currently participating in a number of
 investor presentations during which management will discuss current business
 fundamentals and the outlook for the Corporation.
     An important aspect of these discussions will focus on the first quarter
 results scheduled to be released on May 9, 2001. Although at this point in
 time the results for the first quarter have not been fully consolidated,
 indications are that the strong activity experienced in the quarter will
 result in higher than expected revenue and earnings growth.
     Revenues for the first quarter are expected to be in the range of Cdn.
 $610 million, more than 59% above the amount reported in the same period last
 year. Earnings per share on a diluted basis(1) for the first quarter are
 expected to be at, or slightly above, Cdn. $1.44 or up 55% compared to the
 same period last year. This amount is 16% higher than the current consensus
 estimate of US $0.81 (Cdn. $1.24 converted at the average exchange rate for
 the quarter of 1.528) as reported on "First Call".
     In Canada, weather and the seasonality of the drilling season play a
 significant role in the Corporation's results throughout the year. For
 instance, in Canada we are now entering the normal spring break-up period when
 activity levels decrease. While weather can affect activity in the balance of
 the year, typically, drilling begins to recover in the third quarter with
 further growth in the fourth quarter. Consensus earnings as reported on "First
 Call" show an aggregate earnings figure for the remaining three quarters of
 the year of US $1.48 which at current exchange rates, and combined with the
 first quarter estimate referred to above, equates to Cdn. $3.74 for the 2001
 fiscal year. Based upon existing market conditions and normal weather
 patterns, this estimate is within the range of the Corporation's current
 expectations.
 
     Certain statements contained in this press release, including statements
 which may contain words such as "could", "should", "expect", "believe", "will"
 and similar expressions and statements relating to matters that are not
 historical facts are forward-looking statements. Such forward-looking
 statements involve known and unknown risks and uncertainties which may cause
 the actual results, performances or achievements of Precision to be materially
 different from any future results, performances or achievements expressed or
 implied by such forward-looking statements. Such factors include fluctuations
 in the market for oil and gas and related products and services, political and
 economic conditions in countries in which Precision does business, the demand
 for services provided by Precision, Precision's ability to attract and retain
 key personnel and other factors which are described in further detail in
 Precision's filings with the Securities and Exchange Commission.
 
     Precision Drilling Corporation is listed on the Toronto Stock Exchange
 under the trading symbol "PD" and on the New York Stock Exchange under the
 trading symbol "PDS".
 
     -------------------
     (1)  Reflects the adoption of the treasury stock method of calculating
     diluted earnings per share in accordance with recently revised Canadian
     generally accepted accounting principles. Accordingly, comparative
     amounts have been restated changing diluted earnings per share for the
     three months ended March 31, 2000 to Cdn. $0.93 from $0.90.
 
 
 SOURCE Precision Drilling Corporation