SERVICE SECTOR / Plains Energy Announces Fourth Quarter Results
CALGARY, Dec. 16 /CNW/ - Plains Energy Services Ltd. (the ''Company'') is
pleased to report its fourth quarter operations and financial results to
October 31, 1998. Effective December 31, 1998, the Company will begin
reporting based on a December 31 calendar basis to facilitate comparison of
its results with its competitors. As a result, our 1998 year-end will be for
the fourteen month period ended December 31.
Low oil prices have continued to depress drilling and production activity
during the fourth quarter. Our customers have seen significantly reduced cash
flow and have substantially reduced spending on oilfield services. This
situation is expected to continue for the next twelve months. The Company has
a strong balance sheet to complement its diverse service divisions, protecting
as much as possible our income and cashflow during this period of weak
industry fundamentals. Revenue, cashflow and EBITDA have all increased from
the prior year despite the reduced activity.
The Company remains committed to its long-term program to develop and
provide integrated service solutions for our customers, with the overriding
objective of optimizing our customer's spending. Despite the current weakness
in our industry and the resultant pressures on our customers cashflow, we are
confident that this approach will ultimately be successful. To date we have
developed co-ordinated service relationships with several of our customers,
and anticipate expanding this strategy over the next several quarters as
customer response to our overtures is evaluated and our service capacity and
breadth expands. The introduction of our coil tubing drilling services in
late 1998 will undoubtedly accelerate our penetration of the market in this
regard. As well as continuing to diversify and integrate our services
domestically, Plains is expanding its service base in the United States and
continues to evaluate additional international service locations to temper its
dependence on the North American market. As always, any forays into new
markets will be undertaken cautiously and opportunistically to ensure maximum
short and long-term returns for our shareholders.
The financial highlights for the three month and twelve month periods
ending October 31, 1998 are as follows:
($000's except per share data)
Three months ended Twelve months ended
October 31 October 31
1998 1997 1998 1997
-------------------------------------------------------------------------
Revenue $18,097 $20,248 $84,197 $50,501
Income 247 2,249 5,621 6,546
Income per share
basic .01 .16 .28 .50
fully diluted .01 .15 .28 .46
Cashflow 2,568 4,531 14,757 10,926
Cashflow per share
basic .13 .32 .75 .83
fully diluted .13 .29 .70 .74
EBITDA 2,918 6,177 19,282 16,158
EBITDA per share
basic .15 .43 .98 1.23
fully diluted .15 .39 .91 1.08
Weighted average number of
shares outstanding
(basic) - year to date 19,722,934 13,109,076
Actual shares outstanding
- basic 21,023,905 15,316,605
- fully diluted 22,836,855 22,604,605
-------------------------------------------------------------------------
Consolidated revenue for the twelve months ended October 31, 1998
increased 67% to $84.2 Million from $50.5 Million for the same period last
year. Consolidated net earnings after tax decreased to $5.6 Million ($0.28
per share, fully diluted) from $6.5 Million ($0.46 per share, fully diluted).
Cashflow for the Company was $14.8 Million ($0.70 per share, fully diluted)
versus $10.9 Million ($0.74 per share, fully diluted), while EBlTDA was $19.3
Million ($0.91 per share, fully diluted) compared to $16.2 Million ($1.08 per
share, fully diluted) for the same twelve month period of the prior year.
Plains generated revenues of $18.1 Million versus $20.2 Million in 1997
for the three months ended October 31, and net income of $0.247 Million or
$0.01 per share versus $2.249 Million or $0.15 per share for the same period
in the prior year. Cashflow for the Company was $2.6 Million ($0.13 per
share, fully diluted) in this quarter (1997 - $4.5 Million or $0.29 per share,
fully diluted), while EBITDA was $2.9 Million ($0.15 per share, fully diluted)
versus $6.2 Million or $0.39 per fully diluted share for 1997.
At October 31, 1998, the Company had capital leases and long-term debt of
$2.3 Million and working capital of $4.0 Million. The Company has utilized
$8.7 Million of its $35 Million in term and operating lines available, which
is reflected in its current working capital.
As of October 31st the Company has purchased 125,500 shares for
cancellation through a normal course issuer bid.
This press release may contain forward-looking statements that are
subject to risk factors associated with the oil and gas business. The Company
believes that the expectations reflected in this release are reasonable, but
results may be affected by a variety of variables including, but not limited
to, price fluctuations, currency fluctuations, drilling and production results
of our customers and partners, industry competition, environmental risks,
political risks and capital restrictions.
Plains Energy Services Ltd. is an integrated oilfield service company
providing cost-effective completion and production services in Canada and the
United States. Plains Energy operating subsidiaries include
Challenger/Silverline, Entest Corp., Fleet Cementers Inc., Fleet Coil
Technologies Corp., Lagore Bros. Drilling Services Inc., Plains Perforating
Ltd., Polar Completions Engineering Inc. and Round-Up Well Servicing Corp.
Plains Energy Services Ltd. trades on The Toronto Stock Exchange under
the symbol ''PLA''.
|
