Trinidad Drilling bleeds cash

Canada’s Trinidad Drilling posted a quarterly loss, hurt by foreign exchange losses and lower utilisation rates, and said it sees a slow return of price control towards the middle of next year.

For the third quarter, the exploration company reported a net loss of C$12.1 million (US$11.4 million), or 10 Canadian cents per share, compared with earnings of C$20.4 million, or 21 Canadian cents per share, a year earlier.

Revenue fell 34% to C$126.1 million.

Analysts on average expected earnings of 3 Canadian cents, before special items, on revenue of C$138.4 million, according to Thomson Reuters I/B/E/S.

Drilling utilisation rates in Canada fell to 36% from 63% a year ago, while utilisation rates at US and other international drilling operations fell to 61% from 85%.

Trinidad said it recognised a foreign exchange loss of C$11.4 million, compared with a gain of C$6.8 million, a year earlier.

The company said it does not expect to see an immediate recovery in the oil and gas sector.