SERVICE SECTOR - EARNINGS / Alpine Q3 results
ALPINE OIL SERVICES ANNOUNCES NINE MONTH EARNINGS
INCREASE 97%
CALGARY, ALBERTA--
NINE MONTH EARNINGS INCREASE 97
Three months ended Nine months ended
September 30 September 30
$000s Cdn. except per
share amounts 1998 1997 % Change 1998 1997 % Change
Revenue 9,577 8,065 +19 27,702 23,288 +19
Gross margin 36% 39% 37% 35%
Net income 1,174 729 +61 3,101 1,574 +97
Per share 0.06 0.04 0.15 0.09
Cash flow from
operations 2,124 1,790 +19 6,136 4,490 +37
Per share 0.11 0.10 +10 0.29 0.26 +12
Average shares
outstanding 21,278,026 17,095,560
Alpine Oil Services Corporation is pleased to report on its
financial performance for the nine months ended September 30,
1998. Consolidated revenue for the year to date increased 19% to
$27.7 million. Consolidated net income for the year to date
increased 97% to $3.1 million. Third quarter revenue and earnings
increased 19% and 61% respectively, compared to last year. Cash
flow from operations increased 37% compared to the first nine
months of 1997.
On a per share basis for the third quarter, Alpine earned $0.06
compared to $0.04, and generated cash flow from operations of
$0.11 compared to $0.10 last year. Year to date earnings per
share increased substantially to $0.15 from $0.09 during 1997.
Year to date cash flow per share increased to $0.29 from $0.26
last year.
Wireline, production and underbalanced drilling service revenue
increased 33% to $16.1 million over the first nine months of
1997. Drill stem testing and telemetry service revenue remained
stable at $5.5 million, a decrease of 3% compared to the same
period last year. Equipment sales and services increased 11% to
$5.9 million.
Year to date gross profit margins increased to 37% from 35% last
year. For the third quarter, profit margins decreased slightly
due to prevailing market conditions. Selling, general and
administrative expenses increased by 8% to $2.9 million, but fell
as a percentage of revenue to 10.7% from 11.7% last year.
Alpine's sale of its Argentina operations resulted in a net loss
on disposition of approximately $334,000. Current and deferred
income taxes have decreased to 32% from 45% of income due to a
higher proportion of non-Canadian revenues. With an increasing
equipment base, wireline, production testing and underbalanced
drilling services continue to show strong gains, on the strength
of domestic natural gas related activities. As expected,
equipment sales and services experienced significant growth
during the third quarter, due primarily to continuing market
penetration for underbalanced drilling and other proprietary
products for international markets.
Alpine is of the opinion that its Canadian customers are
well-positioned for an increase in their natural gas related
activities due to the pending increase in Canada's gas export
capacity over the next few years. It will be very difficult to
fill this increased export capacity. The gap between
transportation capacity and productive capacity will cause gas
prices to increase. While natural gas drilling activities are
affected by lower oil prices, a key issue will be the level of
capital expenditures targeted at natural gas. Alpine's customer
base has remained very active as far as its services are
concerned. Although October produced somewhat lower financial
results which were similar to that of 1997, November and December
are historically the most active, and consequentially important
months of Alpine's fourth quarter.
Alpine Oil Services Corporation is an innovative, value-added
energy services entity competing in the Canadian upstream oil and
gas market. Alpine is the second largest provider of
Underbalanced Drilling surface pressure control equipment
complete with rotating blowout preventers, and largest provider
of Real-Time Drill Stem Testing services, in North America.
Alpine is the only company in North America that has developed
and now offers a mechanical wireline-set and retrievable
production telemetry tool. Internationally the Company is
involved in the sale of its proprietary equipment into select
markets. Alpine is a recognized leader in the research,
development and application of innovative technologies related to
the services it provides. Alpine uses this technological
knowledge base to design and manufacture many of the downhole
tools used in its services. To date, Alpine has developed and
presently uses more than 65 types of proprietary tools and
equipment in its three main service lines.
Contact:
Investor Relations: Jason Krueger
Telephone: (403) 263-7800
Internet: www.alpineoil.com
Email: invest@alpineoil.com
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