EARNINGS - Spec 2 Listed / Trican Well Service Ltd. 1st Qtr Results
TRICAN - FIRST QUARTER 1998
CALGARY, May 19 /CNW/ -
Financial Summary
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($ millions, except per share amounts) Three months ended
March 31,
1998 1997
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Operations revenue $ 14.0 $4.2
Earnings before interest, income taxes,
depreciation & amortization (EBITDA) 3.4 0.7
Net income 1.7 0.4
Net income per share (basic) 0.16 0.05
(fully diluted) 0.15 0.05
Cash flow from operations 2.6 0.7
Cash flow from operations per share (basic) 0.25 0.08
(fully diluted) 0.22 0.08
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Trican Well Service Ltd. (''the Company'') is pleased to release its 1998
first quarter results which show continued strong growth and development.
Financial Review
Trican recorded revenue of $14.0 million, which represents an increase of
$9.9 million or 237 percent compared with the same quarter last year. Net
income for the period increased 347 percent to $1.7 million from $0.4 million
in the 1997 first quarter. Per share earnings were $0.16 (fully diluted $0.15)
as compared to $0.05 (fully diluted $0.05) for the 1997 first quarter. These
increases are the result of high levels of industry activity, the continued
benefit of expanded equipment capacity, greater geographical access and
expanded service lines.
Operating margins have increased this quarter as a result of Trican's
emphasis on the more technical, higher margin services of coiled tubing, acid
stimulation, hydraulic fracturing and nitrogen pumping.
Funds from operations of $2.6 million for the quarter were 286 percent
higher than the prior year (1997 - $0.7 million) and reflect the stronger
earnings in the period. During the quarter, the Company finalized a new loan
facility to finance the equipment expansion which was ongoing at the end of
1997.
Operational Review
The equipment expansion undertaken during 1997 is reflected in the 1998
first quarter results. Trican completed 140 percent more jobs in the 1998
first quarter as compared to the number of jobs completed in the 1997 first
quarter. The Company's strategy of diversifying the services offered to its
customers initiated in 1997 has also influenced the first quarter results.
Revenue per job rose 40 percent reflecting the Company's strategy of evolving
from being principally a cementing company to offering a full range of
services including coiled tubing, acid stimulation, nitrogen pumping and
hydraulic fracturing.
In March 1998, the Company completed a private placement of 2,000,000
special warrants for $4.50 each raising $9.0 million. The proceeds from the
offering, combined with funds from operations, will be used to add additional
fracturing, nitrogen, acid, cementing and coiled tubing equipment. The
additional fracturing equipment will double the Company's current equipment
capacity within this service line. The additional nitrogen, acid and coiled
tubing equipment will increase capacity in each of these service lines by 50
percent (nitrogen pumping), 100 percent (acid stimulation) and 25 percent
(coiled tubing) respectively. All of this equipment is expected to be
operational by the end of the year.
Trican is a well service company focused on serving the oil and gas
industry in western Canada. Trican provides a comprehensive array of
specialized products, equipment, services and technology for use in the
drilling, completion, stimulation and reworking of oil and gas wells. Through
its bases in Red Deer, Lloydminster, Provost, Kindersley and Brooks, Trican
provides fracturing, coiled tubing, stimulation, cementing and related
services to the oil and gas industry. |
