Saturday, July 12, 2025

Latest

Precision Drilling Conducts $9 Million In Share Buybacks Following $10 Million Emergency Wage Subsidy

Precision Drilling (TSX: PD) this morning reported its fourth quarter financing results for 2020 this morning. Within, the company revealed that it had conducted share buybacks throughout 2020, a strategy that continued through to 2021 – despite the firm taking money from the government for wage subsidies.

Within the firms news release this morning, the company indicated that it had posted revenues of $202 million for the fourth quarter of 2020, a 46% decline from 2019’s results, along with a net loss of $38 million. Despite the failing results however, the company felt that proper stewardship of its capital would be to continue with share buybacks in the open market.

The company reported that it had repurchased and cancelled a total of 265,382 common shares for a total of $6 million, in what is believed to be just the fourth quarter – with a total of 420,588 common shares repurchased throughout 2020. The firm also announced that it had repurchased an additional 108,962 common shares for $3.0 million subsequent to year end.

Normally, the repurchasing of shares would be without issue or controversy. However, despite having the ability to repurchase shares and provide a stronger return to shareholders, the company felt the need to access the Canadian government’s Canada Emergency Wage Subsidy – a subsidy meant to “re-hire workers, help prevent further job losses, and ease your business back into normal operations.”

In total, the company reportedly accessed $10.0 million in government assistance under CEWS in the fourth quarter of 2020 – the same quarter it spent $6.0 million buying back shares. The company has also since spent a further $3.0 million buying back shares in the current quarter.

The company reportedly used the funds from the Emergency Wage Subsidy to reduce operating costs by $8.0 million, and general administrative costs by $2.0 million.

Overall, Precision has reportedly accessed a total of $26 million since April 1, 2020, under the Canada Emergency Wage Subsidy.

Precision Drilling last traded at $32.02 on the TSX.


Information for this briefing was found via Sedar and Precision Drilling. The author has no securities or affiliations with any of the mentioned securities. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

European Union to Finally Impose $4 Billion Worth of Tariffs on US Goods Over Boeing Aid Dispute

On Monday, the European Union announced it will impose up to $4 billion in tariffs...

Tuesday, November 10, 2020, 11:03:00 AM

G-7 Economies Agree to Phase Out Financing for Coal Projects, Fossil-Fuel Subsidies

The Group of Seven have decided to begin phasing out financing for coal projects as...

Monday, May 24, 2021, 12:56:00 PM

Precision Drilling Mulls Reverse Split To Regain NYSE Compliance

Precision Drilling (TSX: PD) (NYSE: PDS) announced after the bell last night that the company...

Thursday, March 26, 2020, 10:11:29 AM

Precision Drilling To Acquire CWC Energy Services In Deal Pegged At $141 Million

In a sign of the rising oil market, Precision Drilling (TSX: PD) has expanded its...

Thursday, September 7, 2023, 09:24:15 AM

Liberal Government Finally Unveils New Canada Emergency Rent Subsidy After Previous Program Failed to Gain Traction

Canadian businesses that have been facing significant difficulties in meeting their debt obligations have finally...

Tuesday, November 24, 2020, 02:41:00 PM