Precision Drilling reports Q1 profit and revenue down from year ago [Video]

CALGARY –

The completion of the Trans Mountain pipeline expansion is leading to a boom in demand for drilling services, said Precision Drilling chief executive Kevin Neveu.

The contract driller is seeing demand exceed its expectations, he said on an earnings call Thursday, as the expansion of the crude oil pipeline to the West Coast approaches a May 1 start of commercial operations.

“Do we see customer interest increasing in anticipation of the Trans Mountain start up? The answer is resoundingly yes.”

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The company has 48 rigs currently operating where last year it had 38, and expects demand to continue. It also expects a boost to well servicing contracts.

“We see this momentum continuing throughout the summer and exceeding our prior view on Canadian rig demand,” said Neveu.

The growth is helping offset a retreat in the …