Western reported a 2Q16 EBITDAS loss of $2 mm, slightly better than our forecasted loss of $3 mm. Western’s current Canadian drilling rig utilization is 29%, above industry average of 20% with five rigs currently on take or pay contracts. Day rates are likely to be weak in upcoming quarters, but equipment has to go back to work before pricing improves. As such, we view current utilization as a step in the right direction. The outlook for Contract Drilling is unchanged from our prior vie
28 Jul 2016
2Q16 Results
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2Q16 Results
Western Energy Services Corp. (WRG:TSE) | 0 0 (-5.1%) | Mkt Cap: 103.2m
- Published:
28 Jul 2016 -
Author:
Ian B. Gillies -
Pages:
6
Western reported a 2Q16 EBITDAS loss of $2 mm, slightly better than our forecasted loss of $3 mm. Western’s current Canadian drilling rig utilization is 29%, above industry average of 20% with five rigs currently on take or pay contracts. Day rates are likely to be weak in upcoming quarters, but equipment has to go back to work before pricing improves. As such, we view current utilization as a step in the right direction. The outlook for Contract Drilling is unchanged from our prior vie