SERVICE SECTOR - EARNINGS / Newalta Corp. First Quarter Results
NEWALTA CORPORATION
TSE SYMBOL: NAL
APRIL 23, 1998
Newalta Earnings Decline in First Quarter
CALGARY, ALBERTA--NEWALTA CORPORATION (NAL - TSE) announces its
consolidated financial and operating results for the three months
ended March 31, 1998.
FINANCIAL ($000)
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First Quarter
March 31 Percent
Increase
1998 1997 (Decrease)
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Revenue 14,366 14,650 (2)
Operating income 1,612 3,405 (53)
Earnings 919 2,047 (55)
Earnings per share
(cents) 3.5 7.5 (53)
Cash flow 3,051 4,795 (36)
Average shares
outstanding (000s) 28,078 26,601 6
Total shares
outstanding (000s) 28,133 27,896 1
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Performance in the first quarter of 1997 was exceptionally strong
with revenues and earnings 50 percent and 95 percent,
respectively, above the prior year. Revenue and earnings for the
remainder of 1997 were up 25 percent and 23 percent, respectively.
Earnings in the first quarter of 1998 declined 55 percent compared
to 1997. Warm weather in the first quarter resulted in the early
imposition of road bans, and low crude oil prices, particularly
for heavy oil, resulted in reduced activity levels throughout the
Oilfield Division. The Company's revenues in the northeast Alberta
heavy oil market dropped dramatically at the start of year.
Revenues in this market declined 80 percent and represented only 3
percent of the Company's revenues in the first quarter.
The capital investment program to add new services, construct new
facilities and to expand existing facilities was accelerated in
mid-1997, and approximately $50 million will be invested in the
twelve-month period ending June 1998. New operations in both
Divisions are in the final stages of construction or commissioning
and will be operational at the start of the second half. The
outlook for the remainder of 1998 and 1999 is very positive.
Management is also aggressively pursuing acquisition opportunities
which complement existing operations. |
