October-December net income was C$28 million, or 10 Canadian cents per share, compared with a loss of C$250,000, a year ago, on revenues up 35% to C$587 million.

Net earnings during the third quarter were C$83 million, up from C$56 million in the same period of 2010.

The Canadian market leader also announced that it plans to spend C$1.1 billion this year to complete new rigs and to upgrade existing ones, up from C$726 million in 2011.

The capital expenditure budget includes a C$702 million outlay on completing building 34 drilling rigs and a C$182 million spend to upgrade about 14 rigs, with the remainder going on infrastructure expenditures.

The company plans to begin drilling in Saudi Arabia with three contracted rigs in the coming months.

Precision currently owns 339 contract drilling rigs, including 189 in Canada, 144 in the United States and six rigs elsewhere.

"United States drilling activity continued to increase in 2011 driven by oil and liquids-rich activity," the company said.

Published: 09 February 2012 12:50 GMT | Last updated: 09 February 2012 12:50 GMT