PRECISION DRILLING Corp — Interim / Quarterly Report 2003

May 1, 2003

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO SECTION 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For May 1, 2003 Commission File Number: PRECISION DRILLING CORPORATION (Exact name of registrant as specified in its charter) 4200, 150 - 6TH AVENUE S.W. CALGARY, ALBERTA CANADA T2P 3Y7 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F [] Form 40-F [X] Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)._______ Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders. Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):_______ Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [] No [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A ------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PRECISION DRILLING CORPORATION Per: /s/ Jan M. Campbell ---------------------------------- Jan M. Campbell Corporate Secretary Date: May 1, 2003 Calgary, Alberta, Canada - May 1, 2003 PRECISION DRILLING ANNOUNCES STRONG FIRST QUARTER RESULTS - MARCH 31, 2003 Precision Drilling Corporation ("Precision" or the "Corporation") today reports strong results for the first quarter of 2003. Earnings per share from continuing operations for the quarter was $1.30 compared to $1.19 in the first quarter of the prior year. Results from continuing operations were reduced by $0.07 per share due to the net impact of writing down operating assets, settlement of two disputes and costs incurred related to restructuring certain operations. The gain on disposal of Energy Industries Inc. ("Energy Industries") added earnings of $0.24 per share for a total of $1.54 for the quarter while the impact of Energy Industries earnings on 2002 was $0.04 per share for a total of $1.23. Operating earnings as a percentage of revenue was 30% and 5% for the Contract Drilling and Technology Services segments, respectively, compared to 33% and 4% in 2002. The above-mentioned items reduced operating earnings for the Contract Drilling and Technology Services segments by $3.3 million and $6.3 million respectively and increased operating earnings in the Corporate segment by $3.1 million. Contract Drilling operating earnings, as a percentage of revenue, excluding the impact of these items, was 31% in 2003 compared to 33% in 2002. Technology Services operating earnings before the impact of these items was $16.7 million or 8% of revenue, doubling the previous year's 4%. Contract Drilling revenue of $335.9 million in the first quarter of 2003 increased by $30.3 million or 10% compared to the same period in 2002. The increase was the result of heightened activity in Canada where rig operating days for the Corporation increased 19% over the same period of the prior year partially offset by a 3% decrease in drilling day rates. The increase experienced in Canada was offset somewhat by a decrease in revenue from international operations due to the political instability in Venezuela and the strengthening Canadian dollar when compared to the US dollar. Revenue in Technology Services of $214.7 million was a 15% increase over the first quarter of 2002. In line with Contract Drilling, the majority of the increase was from the Canadian market where revenue was up 19%. The improved EMpulse(TM) electromagnetic (EM) measurement while drilling (MWD) system delivered significant operational efficiencies during the first quarter, which contributed to increased market share and financial performance. During the quarter the Corporation also took significant steps to reduce costs and improve profitability without limiting the ability to globalize our core product offerings. The Corporation sold its 100% owned subsidiary Energy Industries with an effective date of January 1, 2003. After excluding the impact of Energy Industries, revenue from the Rental and Production segment of $49.6 million was up 4% from the same quarter in the prior year. The improvement in the oilfield activity in Canada had a direct impact on the Company's rental business, which saw a revenue increase year over year of 31%. The industrial plant maintenance business remained at similar activity levels as in the prior year. The Corporation's commitment to international expansion will continue with a heightened focus on sustainable profitability. That being said, the anticipated record activity levels in Canada, where the Corporation enjoys a dominant position, will be the driver for improved earnings. Certain statements contained in this press release, including statements which are related to drilling activity and future profitability and which may contain words such as "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Precision to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include fluctuations in the market for oil and gas and related products and services; competition; political and economic conditions in countries in which Precision does business; the demand for services provided by Precision; changes in laws and regulations, including environmental, to which Precision is subject and other factors, which are described in further detail in Precision's filings with the Securities and Exchange Commission. CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENTS OF CASH FLOW

SEGMENT INFORMATION

CANADIAN DRILLING OPERATING STATISTICS

A conference call to review the first quarter 2003 results has been scheduled for 12:00 noon MST on Thursday, May 1, 2003. The conference call dial-in number is 1-800-814-4853. A live webcast will be accessible at www.precisiondrilling.com. Precision Drilling Corporation is listed on the Toronto Stock Exchange under the ticker symbol "PD" and on the New York Stock Exchange under the ticker symbol "PDS". FOR FURTHER INFORMATION, PLEASE CONTACT DALE E. TREMBLAY, SENIOR VICE PRESIDENT, FINANCE AND CHIEF FINANCIAL OFFICER, TELEPHONE: (403) 716-4500, FAX: (403) 264-0251; WEBSITE: WWW.PRECISIONDRILLING.COM.