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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Craig C who wrote (3971)	10/21/1997 4:09:00 PM
From: Geoff Trueman	Read Replies (1) \| Respond to of 24935

ALL / DESTINY SERVICE CORP DSC - A Following up on one of the many intriguing postings at Kerm's Korner, the information presented below on Destiny Service Corporation (DSC - A) has been gleaned from the company's recent press releases. The company is engaged in providing specialized sesmic drilling, line clearing and reclamation services to the oil and gas industry. hey have increased their focus beyond domestic operations to include higher margin international activities and currently entertain operations in Bolivia, Ecuador, Peru and Papau New Guinea. The company is looking to enter new regions such as west Africa and is also anticipating a strong third quarter for domestic operations. Given the financial figures presented below, their strategy certainly appears to be working. While political and currency risk should not be discounted, the company certainly appears to be experiencing very favourable margins and returns. Destiny has now experienced three successive quarters of year over year financial improvement and has a rolling total for twelve month net earnings equal to $2.5 million. As per the most recent financial statement, weighted average shares outstanding are only 7.5 million, 10.1 million fully diluted. I have not found any brokerage or newsletter comment on the company, perhaps because it only recently went public, conducting its IPO in March 1997. The stock price has been closing around the $3.00 mark for the past week. Financial Information All amounts in thousands of $CDN For the three month periods ended: Feb May Aug Nov Feb May Aug 96 96 96 96 97 97 97 Domestic Revenue 6825 1582 4311 2245 7399 3486 3623 International Revenue 1798 1935 2106 4425 3203 383 6436 Total Revenue 8613 3517 6417 6670 10602 7324 10059 Net Earnings 425 (17) (225) 175 1068 386 892 Cash Flow 677 389 (76) 613 1436 939 1262 So there you have it, a brief snapshot of an intriguing play on the oil and gas service sector that also includes an international flavour. Interested parties should conduct their own due diligence to evaluate the company based on fundamental data and the relative valuations ascribed to other oil and gas service stocks. Sorry about the tables and the wonky posting format.