Is Precision Drilling (PD) halal?

Precision Drilling Corporation (TSX: PD) is an oilfield-services company whose debt is about 42.3% of market cap — over the ~33% ceiling — so it fails the debt gate: FAIL.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — no haram lines identified

Precision is 'a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry' (company boilerplate, September 2026), offering an extensive fleet of Super Series drilling rigs, the Alpha™ digital-technology portfolio, EverGreen™ environmental solutions, well service rigs, camps, and rental equipment. In Q2 2026 it operated about 123 rigs globally (Canada, the US, and Kuwait), with Canadian utilization days up 20.3% year over year and US days up 6.0%. This is an oil and gas services company, not a producer; no alcohol, gambling, conventional-lending/insurance, entertainment, or weapons lines are disclosed.

Gate two: the ratios — the debt gate fails

At June 30, 2026 (unaudited Q2 2026 interim statements): long-term debt of C$626.327 million (down from C$679.291 million at December 31, 2025). Cash and equivalents were C$66.292 million. With about 12.59 million shares at about C$114 (September 29, 2026), market cap is about C$1.48 billion, so debt-to-market-cap is about 42.3% — over the ~33% ceiling. Including C$70.697 million of separately disclosed lease obligations (C$19.545 million current + C$51.152 million noncurrent), the ratio is about 47.1% — it fails either way. The income gate clears: the cash-flow statement separately discloses 'interest received' of C$384,000 in Q2 2026 against revenue of C$452.8 million (0.085%), and C$808,000 in H1 2026 against revenue of C$978.851 million (0.083%) — well under the ~5% ceiling. The company is a net payer of interest (finance charges of C$12.301 million in Q2 2026).

What other screeners say

No Zoya, Musaffa, or ShariaPortfolio rating for Precision Drilling (PD) could be verified from public sources. Caution: Zoya's 'pdsb' page is PDS Biotechnology — a completely different company; do not conflate the two. No third-party rating is claimed here.

The bottom line

This screener gives Precision Drilling Corporation (TSX: PD) a FAIL. Interest-bearing debt of about 42.3% of market cap is over the ~33% ceiling (about 47.1% including lease obligations). The income gate clears (~0.08% interest income of revenue) and no haram business lines are disclosed — the failure is purely ratio-driven. Snapshot dated September 29, 2026; re-checked quarterly after earnings.

Sources

Frequently asked questions

Is Precision Drilling stock halal?

No — Precision Drilling Corporation (TSX: PD) fails the debt gate. Interest-bearing debt of C$626.3 million is about 42.3% of its ~C$1.48 billion market cap, over the ~33% ceiling. The income gate clears (~0.08% interest income of revenue) and no haram business lines are disclosed, but the debt screen fails. No current Zoya, Musaffa, or ShariaPortfolio rating for Precision Drilling could be verified. Consult a qualified scholar.

What are Precision Drilling's debt and market-cap figures?

At June 30, 2026 (Q2 2026 interim statements): long-term debt of C$626.327 million (down from C$679.291 million at December 31, 2025). Cash and equivalents were C$66.292 million. Market cap is about C$1.48 billion (~12.59 million shares at ~C$114, September 29, 2026). Debt-to-market-cap is about 42.3% — over the ~33% ceiling. Including C$70.697 million of separately disclosed lease obligations, the ratio is about 47.1% — it fails either way.

How much interest income does Precision Drilling earn?

The cash-flow statement separately discloses 'interest received': C$384,000 in Q2 2026 against revenue of C$452.8 million (0.085%), and C$808,000 in H1 2026 against revenue of C$978.851 million (0.083%) — well under the roughly 5% ceiling. The company is a net payer of interest: finance charges were C$12.301 million in Q2 2026.

What does Precision Drilling do?

Precision is 'a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry' (company boilerplate, September 2026), offering an extensive fleet of Super Series drilling rigs, the Alpha digital-technology portfolio, EverGreen environmental solutions, well service rigs, camps, and rental equipment. In Q2 2026 it operated ~123 rigs globally (Canada, the US, and Kuwait), with Canadian utilization days up 20.3% year over year. This is an oil and gas services company, not a producer; no haram segments are disclosed.

What do Zoya, Musaffa, and ShariaPortfolio say about PD?