Western Energy Services Corp. Reports Lower Q3 Net Income
Western Energy Services Corp (WRG.TO) said net income decreased by $16.6 million to $8.3 million in the third quarter of 2012 ($0.14 per basic common share) as compared to $24.9 million in the same period in the prior year ($0.43 per basic common share). It said the decrease is mainly due to the $10.7 million gain on the sale of StimSol Canada Inc. in the third quarter of the prior year. After normalizing for this transaction, net income decreased by $5.9 million. The normalized decrease is mainly due to the $6.5 million decrease in EBITDA and increased finance costs of $1.8 million, as a result of Western's January 2012 senior unsecured notes issuance, offset by lower income taxes of $2.9 million.
Revenue totalled $69.6 million in the third quarter of 2012, an $11.2 million decrease (or 14%) over the same period in the prior year as a result of lower utilization in Canada. The slowdown in oilfield service activity was aided by wet weather and uncertain economic conditions which resulted in some producers reducing or delaying capital programs. Lower revenue in the contract drilling segment was partially offset by $1.0 million in well servicing revenue.
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