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Workers at a Precision Drilling rig.

Nathan VanderKlippe/The Globe and Mail

Precision Drilling Corp. reports net earnings of $18-million, or 6 cents per diluted share, for the three months ended June 30, 2012.

That compares to net earnings of $16-million, or 6 cents per diluted share, in the second quarter of 2011.

Revenue for the second quarter of 2012 was $382-million compared to $345-million during the comparable period in 2011.

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Analysts polled by Thomson Reuters were on average expecting Precision to report earnings of 3 cents per share and revenues of $377-million.

The Calgary-based company says its second quarter revenue was lower than the first quarter due to the seasonality of oilfield service activity in Canada known as "spring break-up." Spring break-up was extended this year due to significant rainfall in western Canada.

Precision is Canada's largest oilfield services company, with a presence in the United States and Latin America.

With producers chasing unconventional oil and gas reservoirs throughout North America, demand has been high for the powerful, high-tech drilling rigs Precision has in its fleet.

It said in December it plans to boost its capital budget by 54 per cent to $1.14-billion in 2012, including carry-over costs from last year.

The figure includes $738-million for expansion capital, $232-million for sustaining and infrastructure expenditures and $173-million for upgrades and long-lead-time item expenditures.

About $964-million is targeted for the company's contract drilling segment and $179-million for the completion and production services segment.

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