The Canadian Press - ONLINE EDITION

Major Drilling reports Q1 loss of $7.3M as revenue plummets 38% to $67.6M

  • Print

MONCTON, N.B. - Major Drilling Group International Inc. (TSX:MDI) has reported a fiscal 2015 first-quarter loss of $7.3 million, citing a 38 per cent drop in year-over-year revenue.

The loss, which translated to nine cents per share, compared with a profit of $1.5 million or two cents per share in the comparable year-earlier period.

The Moncton, N.B.,-based contract driller said revenue fell to $67.6 million from $108.2 million in the year-earlier period.

"In the quarter, revenue and margins reflected the impact of the lowest pricing that we have seen in 15 years," president and CEO Francis McGuire said in a statement on the company's results.

"As senior mining houses focus on cutting costs, they are more likely to defer specialized drilling projects, which are more expensive by nature. The company, therefore, finds itself competing more often on a pure price basis and management has to find the optimum balance between price and volume."

McGuire added that in a number of jurisdictions uncertainty as to the policies of host governments or issues around land tenure continued to have an impact on activity.

"With decreasing prices, our margins continue to be affected as we struggle to improve productivity beyond all the gains we have been able to make over the last 18 months. These levels of pricing are not sustainable beyond the medium term as it will affect the capacity of the industry to maintain the quality of its equipment," he added.

McGuire noted that the quarter's margins were also affected by higher than normal repair costs as Major Drilling continued to prepare rigs to be able to respond rapidly to any customer requests.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Premier, Mayor comment on CMHR opening

View more like this

Photo Store Gallery

  • A young goose gobbles up grass at Fort Whyte Alive Monday morning- Young goslings are starting to show the markings of a adult geese-See Bryksa 30 day goose challenge- Day 20– June 11, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • JJOE.BRYKSA@FREEPRESS.MB.CA Local-Postcard  Day-Horror frost and fog created a most beautiful setting at Assiniboine Park Thursday morning in WInnipeg- Enviroent Canada says the fog will lifet this morning and will see a high of -7C-  JOE BRYKSA/WINNIPEG FREE PRESS- Feb 18, 2010

View More Gallery Photos

Poll

Do you support Canada's involvement in the fight against Islamic State?

View Results

View Related Story

Ads by Google