Is Precision Drilling (PDS) stock Halal?

Precision Drilling is a prominent player in the oilfield services industry, notably specializing in drilling and related petroleum services. As a leading supplier of land drilling services in Canada, the United States, and various international markets, its primary function is to facilitate the exploration and production of oil and natural gas. Precision Drilling excels in offering the latest technological advancements in its drilling rigs, which are designed for improved efficiency and safety in operations. Before any of that matters to a Muslim investor, one question comes first: is Precision Drilling stock Halal?

Is Precision Drilling Shariah compliant?

For a resources company like Precision Drilling, AAOIFI Shariah Standard No. 21 has little quarrel with the product; the scrutiny falls on the financing. Heavy machinery and long project cycles are usually funded with debt, and the standard tolerates interest bearing borrowing only below 30% of market capitalisation.

Does Precision Drilling pass the business activity test?

The activity screen is only part of the picture this month: Precision Drilling currently fails the interest-bearing debt screen, so the overall verdict is not compliant regardless of the business itself. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.

Is Precision Drilling's income Halal?

Yes, within AAOIFI's tolerance. Precision Drilling's income from non-permissible sources stays below 5% of revenue in the September 2026 screening.

Does Precision Drilling meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?