SERVICE SECTOR / Newalta Announces Second Quarter Results
TSE SYMBOL: NAL
JULY 23, 1998
CALGARY, ALBERTA--NEWALTA CORPORATION (NAL - TSE) announces its
consolidated financial and operating results for the second
quarter ended June 30, 1998.
/T/
Financial ($000)
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Second Quarter Six Months
Ended June 30 Ended June 30
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Percent Percent
1998 1997 Increase 1998 1997 Increase
(Decrease) (Decrease)
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Revenue
Oilfield 7,015 9,630 (27) 17,032 20,611 (17)
Industrial 5,050 4,557 11 9,399 8,226 14
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12,065 14,187 (15) 26,431 28,837 (8)
Operating income
(loss) (640) 2,879 (122) 972 6,284 (85)
Earnings (loss) (365) 1,709 (121) 554 3,756 (85)
Earnings (loss)
per share (cents) (1.5) 6.5 (123) 2.0 14.0 (86)
Fully diluted
(cents) (1.5) 6.2 (124) 1.9 13.4 (86)
Cash flow 721 3,983 (82) 3,773 8,778 (57)
Capital
expenditures 11,469 11,406 1 22,398 15,239 47
Average shares
outstanding (000's) 28,098 27,016 4
Total shares
outstanding (000's) 28,174 27,983 1
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/T/
The market for the Company's services remained unchanged from the
first quarter and remained depressed compared to last year due to
lower crude oil prices, particularly in the heavy oil market.
Performance in the second quarter deteriorated from the first
quarter due to road bans in April and May and unusually wet
weather in June.
During the past year, the Company has invested more than $50
million in new facilities, facility expansions and service
additions in both Divisions. These investments were completed in
the second quarter and many new facilities and processes will be
operational in July. The Company also expects to close the
previously announced acquisition of two oilfield waste management
operations in the third quarter.
Over the next 12 months, management will reduce the capital
investment program and continue to focus on the performance of the
business to realize the returns on the investments and to maximize
the performance and to enhance profitability of the business.
The Company's aggressive investment program to expand and
strengthen the network of facilities and services will drive
performance for the remainder of 1998 and 1999.
Newalta is a western Canadian waste management company. |
