SERVICE SECTOR / Alpine oil Services 1997 Results
ALPINE OIL SERVICES CORPORATION ANNOUNCES YEAREND EARNINGS AND
CASHFLOW INCREASES
1998-04-03
CALGARY, ALBERTA
1997 1996
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Revenue $32,697,505 $23,722,202
Gross Margin 11,976,066 7,379,755
Net Earnings (Loss) 2,095,047 (268,072)
Earnings (Loss) Per Share $0.12 ($0.02)
Cash Flow From Operations 6,239,263 2,824,575
Cash Flow From Operations Per Share $0.34 $0.17
Weighted Average Shares Outstanding 18,065,283 16,772,190
Mr. Rod Hauser, President of Alpine Oil Services Corporation, today announced
audited financial results for the year ended December 31, 1997. Revenue
increased 38% to $32.6 million from $23.7 million over the same period last
year. This increase was due to market growth in Canada, the establishment of
operations in the United States, and favorable overall market conditions in
North America. Alpine generated a net profit of $2.1 million for 1997
compared to a net loss of $0.3 million in 1996. Earnings per share increased
to $0.12, from a loss of $0.02 in the prior year.
Revenues from wireline, production and underbalanced drilling services
increased 18% to $18.1 million over 1996 results of $15.3 million. This was
due to market growth for wireline services in Canada, and expanding results
for underbalanced drilling and frac recovery services in Canada. Drill stem
testing and telemetry revenues increased 23% to $7.1 million from $5.8
million as a result of increased acceptance of Alpine's telemetry technology,
expansion of services to the United States, and a shift to natural gas
exploration activities in Canada. Equipment sales and other service revenue
increased substantially as well, up 187% to $7.4 million from $2.6 million in
1996. Alpine was able to secure sales for existing and newly released
proprietary tools and equipment lines in a variety of countries. The
performance of Alpine's operation in Argentina was disappointing. Alpine
Argentina S.A. showed a loss of $1.3 million on revenue of $3.3 million. The
remaining 49% ownership of Testing Alpine S.A. was purchased from our local
partners in March 1997. Consequently, these numbers reflect one-time expenses
relating to the reduction of certain operating expenses. This operation is
very important to the Company, and management is confident it will benefit
from a strategic redeployment of assets to other more active areas in
Argentina outside of the Neuquen basin, where activity levels were
drastically reduced due to lower oil prices.
Direct costs decreased as a percentage of revenues as economics of size were
realized in Canada, and lower manufacturing costs were incurred with the Sale
of proprietary equipment. Direct costs decreased to 63% from 69% of total
revenue. Selling, general and administrative expenses remained stable at $4.1
million, due largely to efforts at streamlining operations. Selling, general
and administrative costs were 12.5% of revenue, compared to 17.2% last year.
Looking ahead, Alpine believes that the market for its energy services will
continue to be buoyant, even in the face of much lower commodity prices
year-to-date. The majority of Alpine's services in Canada relate to the
natural gas exploration cycle; as natural gas pipeline capacity increases
substantially over the next year, the demand for Alpine's services in North
America will continue to strengthen. On a global level, Alpine will continue
to maximize its returns and minimize its risks by entering into strategic
joint ventures, and by engaging in technology exchanges and equipment sales
that inevitably lead to further business opportunities and greater
profitability. With the introduction of our new underbalanced rotating
blowout preventers, we expect to see an increase in the utilization of our
surface pressure control systems, due to the cost savings for our customers.
Over the past three months, we have made arrangements for the supply of an
integrated underbalanced drilling package for our customers which includes
nitrogen membrane gas supply systems, which will consequently assist Alpine's
international marketing efforts.
Alpine Oil Services is a vertically integrated oil field service company,
providing specialized technology to the international petroleum exploration,
production and processing industries worldwide. Alpine operates in these
sectors by developing, manufacturing, operating and marketing proprietary,
leading-edge technologies for companies in North and South America, South
East Asia, the Middle East and Europe. |
