Monday November 15, 7:19 pm Eastern Time
Company Press Release
Hyduke Resources Ltd.-First Quarter Results
EDMONTON, ALBERTA--
OPERATING DIVISIONS: B.W. RIG REPAIR & SUPPLY
RELIABLE AIRFLOW SALES & SERVICE
CANWEST CRANE AND EQUIPMENT
MIMCO ENTERPRISES
First Quarter Results
The improving commodity prices did not have a significant effect on drilling and service rig activity levels in Western Canada.
Many producers were taking the opportunity to utilize the increased cash flows to repay debt and improve the strength of their
balance sheets. Many of Hyduke's customers had good drilling/servicing programs planned for the summer months, however
this activity has been hampered due to poor weather conditions and delays in location preparations.
With continued strength in commodity prices, oil and gas producers are preparing for significant increases in drilling and service
related activities in the third and fourth quarter, and this trend is expected continue well into the new year.
The increase in the price of oil to a current level of around $24 U.S. per barrel is positive for the company and should translate
into profits for the company beginning in the second and third quarter of this fiscal year. Also, the recent acquisition of Mimco
Enterprises Ltd., a Calgary-based company, should both diversify and complement Hyduke's other divisions on a go-forward
basis.
The following financial results indicate a clear upward trend in sales revenue and a significantly smaller loss on a quarterly basis.
For Q1, Hyduke had gross revenues of $3.2 million compared to $2.7 million for Q4 ending in April 30, 1999. The company
had a net loss of $180,464 in Q1 compared to a net loss of $552,843 for Q4. This results in a net loss of $(.023) per share in
1999 compared to a net loss of $(.073) per share in Q4. The 1999 revenues include two months of operations of Mimco
Enterprises Ltd. - a hi-tech fabrication and machining services company. For the period ending July 31, 1999, Mimco
contributed $383,000 in revenues and $50,000 in net profit before tax to Hyduke's results.
Financial Highlights:
Thousands of Cdn. Dollars Q1 Q4 Q1
July 31, 1999 April 30, 1999 July 31, 1998
------------- -------------- -------------
Revenue 3,232 2,656 5,104
EBITDA (18) (593) 184
Net Earnings (loss) (180) (553) 41
Per share $(.023) $(.073) $.022
Hyduke has over $1.7 million of retained earnings as at July 31, 1999 and has a positive working capital amounting to $1.2
million.
The outlook for the oil and gas service industry remains positive. Commodity prices continue to remain strong and cash flows of
oil and gas companies have increased significantly from this period last year. Given this trend Hyduke expects to see significant
drilling and service rig activity during the winter drilling season, which is expected to commence early to mid December.
Hyduke also expects to see a substantial increase in drilling activity and pricing in the year 2000 which will demonstrate a
significant increase over the year 1999.
Hyduke Resources Ltd. is an integrated oilfield services company specializing in the manufacture, repair and sales of oilfield
equipment and supplies. The range of products include oilfield service rigs, pump trucks, generator & combination buildings,
pneumatic controls, various models of truck mounted cranes, oilfield supplies, drilling tools, machining and fabrication services.
Contact:
Hyduke Resources Ltd.
John Babic
CEO
(780) 463-8686
(780) 988-5768
jbabic@hyduke.com
or
Hyduke Resources Ltd.
Bob Ardiel
CFO
(780) 463-8686
(780) 988-5768 |
