CALGARY – Shares in Precision Drilling Corp. fell Thursday after the oil and gas driller said a rig decommissioning charge dragged it to a fourth-quarter loss.
The Calgary-based company posted a net loss attributable to shareholders of $41.9 million for the three months ended Dec. 31, or $3.23 per share. During the same period a year earlier, Precision posted a $14.8 million profit worth $1.06 per share.
It took a $67-million non-cash asset charge related to its decision to take 31 of its 215 marketable drilling rigs out of service because they “no longer aligned with Precision’s advanced technology and performance standards.”
Chief financial officer Dustin Honing told analysts on a conference call that over the past year or two, drilling programs have been becoming more complex, putting higher strain on equipment.
“There’s just a specific capacity that you need,” he said. “So when we look deep into our fleet and scrutinize the capabilities, it just was clear that we had a few that were … not competitive.”
Precision recorded a non-cash charge of $17 million related to drill pipe, also due to increased wear and tear from complex wells.
CEO Carey Ford told the call that it’s an industry-wide dynamic in Canada and the U.S.
“Drill pipe is just wearing out a whole lot faster than it used to, and we need to adjust our accounting treatment to account for that,” he said.
Revenues for the quarter were $478.5 million, up from a year-earlier $468.2 million.
For the quarter, there were an average of 66 rigs drilling in Canada compared to 65 a year earlier. In the U.S., it had an average of 37 active drilling rigs, up from 34 during the last three months of 2024. Its international segment had an average of seven rigs working, one fewer than the year-earlier period.
Precision shares fell $9.41, or almost eight per cent, to $113.10 on the TSX.
The company expressed a favourable business outlook in its latest financial report despite recent headwinds.
“Near-term expectations for global energy demand growth remain tempered by persistent geopolitical uncertainties and continued signs of oversupply,” it said.
“However, this narrative has started to soften as demand indicators stabilize, particularly in natural gas markets, where accelerating (liquefied natural gas) supply growth and strengthening consumption in key regions, including Asia and Europe, are expected to support a more constructive demand outlook in 2026.”
Longer term, the company sees economic expansion, rising energy needs in emerging economies and sustained global LNG demand supporting its business.
“Additionally, natural gas-fired power generation is poised for multi-year structural growth as data centres scale rapidly to meet AI driven electricity demand.”
This report by The Canadian Press was first published Feb. 12, 2026.
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