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Gold/Mining/Energy : bou-bonus resources -- Ignore unavailable to you. Want to Upgrade?

To: oilmaster who wrote (10)	2/17/1999 3:29:00 PM
From: Richard Saunders	Read Replies (1) \| Respond to of 15

oilmaster - here's the news release. Lots of gloom in the service side. CALGARY, Feb. 17 /CNW/ - Tom Alford, President and Chief Executive Officer, announces year end results for Bonus Resource Services Corp. Revenue during 1998 amounted to $137.2 million, a 28 percent increase over the 1997 total of $107.4 million. Increased revenue was the result of an expansion of the rig fleet from 146 to 213 offset by a decline in utilization levels from 106.9 percent in 1997 to 68.2 percent in 1998 caused by the prolonged slump in crude oil pricing. The drop in utilization levels led to a reduction in revenue per rig which, when combined with the impact of higher depreciation, general and administrative and interest expenses associated with the larger rig fleet, resulted in a decline in net earnings. Net earnings declined from $10.5 million ($0.33/share) in 1997 to $2.7 million ($0.06/share) in 1998 while earnings before interest, taxes and depreciation (''EBITDA'') declined from $27.6 million ($0.86/share) in 1997 to $22.7 million ($0.49/share) in 1998. Results for the fourth quarter of 1998 reflect a difficult operating environment which resulted in overall utilization of 58 percent and revenue of $29.9 million. Net earnings for the fourth quarter were $0.5 million ($0.01/share) and EBITDA was $5.9 million ($0.13/share). The impact of Bonus' cost reduction effort was apparent during the fourth quarter of 1998 as general and administrative costs declined from $5.2 million in the third quarter to $4.2 million in the fourth quarter. In addition, capital expenditures during the fourth quarter reflect net proceeds of disposition of $0.7 million as opposed to capital spending of $12.2 million in the previous three quarters. Looking forward, Bonus expects industry conditions to remain difficult with utilization levels and operating margins coming under continued pressure. In response to these conditions, the Company has continued to aggressively cut costs from its structure and expects to reduce its administrative and support staff significantly. Bonus is the largest provider of service rigs to the Canadian oilpatch operating 206 rigs in western Canada and seven in Australia. Bonus trades on The Toronto Stock Exchange under the symbol BOU.