Pioneer Drilling Second Quarter Profit More Than Doubles on Higher Rig Demand and Rates
Pioneer Drilling Co., which provides drilling services to the oil and gas industry, on Thursday said fiscal second-quarter earnings more than doubled, as demand for the company’s rigs grew and it charged higher rates.
Earnings for the fiscal 2007 quarter jumped to $23.5 million, or 47 cents per share, from $11.1 million, or 24 cents per share during the same period last year.
Analysts polled by Thomson Financial forecast a profit of 44 cents per share.
Revenue grew by more than half to $106.9 million from $67 million during the same period a year ago.
Total operating costs increased 43 percent to $71.2 million.
Pioneer Drilling President and Chief Executive Wm. Stacy Locke said demand for its rigs remained strong throughout the quarter and the company continued to see modest increases in daily contract rates. Average drilling revenues per day climbed to $20,272 in the second quarter compared to $15,064 in the same period last year.
In addition, the company’s number of revenue days in the quarter increased to 5,274 from 4,446 a year ago.
Shares of Pioneer Drilling rose 12 cents to $13.07 in afternoon trading on the American Stock Exchange. The stock has traded in a 52-week range of $11.57 to $23.06.