* Revenue jumps 13 pct, profit rises 9 pct
* Raises full-year capex plan for second time
(Adds details, background, estimate, shares)
April 28 Precision Drilling Corp
, Canada's largest oil and gas drilling contractor,
raised its full-year capital spending plan for the second time
in over a month, citing strong demand for its new rigs.
The company raised its capital budget by nearly a third to
C$833 million ($755 million) after reporting
better-than-expected revenue on higher pricing and drilling
activity in North America and internationally.
Precision Drilling said it would spend the additional
capital on nine new rigs, expected to be delivered in the second
half of 2014 and early 2015. The company said it had contracts
for eight of the nine rigs.
Precision Drilling, which also operates in Asia, Latin
America and North Africa, said last month that it had secured
contract renewals and new contracts in Mexico and the Middle
East. The company then raised its capital budget by C$119
The company said on Monday that it would look at getting two
new rigs delivered per month starting 2015, if customer demand
continued at "the current pace".
Precision Drilling, which competes with Ensign Energy
Services Inc, Trinidad Drilling Ltd and
Savanna Energy Services Corp, also provides well
completion and production services.
Precision Drilling on Monday warned that the well servicing
and production business remained challenging as customers spent
Lower margins at the business resulted in a slightly
lower-than-expected profit in the first quarter ended March 31.
Net profit rose 9 percent to C$101.6 million, or 35 Canadian
cents per share, but missed the average analyst expectation of
36 Canadian cents per share, according to Thomson Reuters
The Calgary, Alberta-based company's revenue rose 13 percent
to C$672.2 million, above the average analyst estimate of
Precision Drilling's New York-listed stock closed at $12.56
on Friday, while it closed at C$13.84 on the Toronto Stock
($1 = 1.1030 Canadian Dollars)
(Reporting By Shubhankar Chakravorty in Bangalore; Editing by
Joyjeet Das and Sriraj Kalluvila)