EDMONTON,
Sept. 30, 2013 /CNW/ -
John Babic, President and CEO of
Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to
announce fiscal 2014 first quarter financial results for the three
months ended July 31, 2013.
The first quarter of this year was fairly
representative of the historical trends normally associated with
the quarter and while the Company managed to buck the trend
somewhat last year, poor weather this year delayed much of the work
originally scheduled for Q1. In addition to drilling delays, many
of the roadways to existing customer sites were also deemed
un-passable due to the inclement weather. As a direct consequence
of the aforementioned, revenues for Q1'14 suffered a decrease of 7%
or $532K to close out at $7.6M as compared to $8.1M in the previous year. In conjunction
with increased staffing levels and higher operating costs, gross
margin for the quarter dipped to 18% compared to 27% for
Q1'13. EBITDAS followed suit and declined 98% to $19K from the $1.0M
in Q1'13. Dalmac posted a net loss of $701K or ($0.03)
per share in Q1'14 as compared to net income of $238K or $0.01 per
share during the comparable period in fiscal 2013.
|
|
|
|
(in thousands of dollars, |
|
|
|
except per share
data) |
Q1 2014 |
|
Q1 2013 |
|
|
|
|
Revenues |
$ 7,614 |
|
$8,146 |
Gross margin |
1,364 |
|
2,180 |
Gross margin % |
18% |
|
27% |
EBITDAS(1) |
19 |
|
1,006 |
EBIDTAS per share -- basic |
0.00 |
|
0.04 |
Net income/(loss) |
(701) |
|
238 |
Net income/(loss)/share - basic |
(0.03) |
|
0.01 |
Net income/(loss)/share - diluted |
(0.03) |
|
0.01 |
(1) |
EBITDAS stands for earnings before interest, taxes,
depreciation, amortization, and stock based compensation. |
|
|
The issues regarding the Q1'14 performance were anticipated and
forecasted by Dalmac but as is always the case, the extent and the
duration of weather related circumstances are rather difficult to
predict with any degree of precision. An important prognosticator
of success in our industry is to be ready, willing and able to
perform. This readiness for action requires the availability of a
skilled workforce and the proper and reliable equipment to do the
job when called upon. It is with the knowledge and expectation of a
very robust and active fall and winter season that Dalmac took the
initiative to make sure we had the proper staffing levels along
with properly maintained equipment. Although the down pouring of
rain hampered much of our business in the first quarter, the
company is expecting a stabilizing return to historical gross
margins over the next few quarters. In addition, Dalmac
anticipates that its recent $10.2
million purchase of new equipment and upgrades will be fully
utilized by a surge of oilfield activity and production
requirements.
Outlook
The seasonal and weather related factors have
had a dampening effect not only on Company operations, but also on
the whole oil and gas industry. In spite of the slowdown in
activity, which has been hovering at the lowest activity levels
seen in several years, an upward movement seems to be currently
underway. This is evidenced by the July and August rig counts which
are showing strong signs of improvement and are currently on track
to mirror, if not outpace, those of 2012. According to the Canadian
Association of Oilwell Drilling Contractors, the second half of
2013 is very encouraging and activity levels are expected to
rebound back to where they were in the second half of 2012. Going
forward, the outlook for the balance of the year is considerably
more encouraging given that this positive expectation is supported
in large part by higher crude oil pricing and improved netback
differential pricing as well as the optimistic prospects for future
exports of Canadian natural gas through west coast LNG facilities.
The aforementioned trends are expected to provide a positive
foundation for an improved operating environment for our oilfield
services as we venture out over the course of the year.
Conference call
A conference call to discuss the results will be held today,
September 30, 2013, at 1:30 pm EST/11:30 am
MST.
To participate in the conference call, please dial 416-644-3414
local in Toronto or toll-free
1-800-814-4860 and request the Dalmac Energy conference.
Statements throughout this report that are
not historical facts may be considered 'forward looking
statements'. Such statements are based on current
expectations that involve risks and uncertainties, which could
cause actual results to differ from those anticipated.
Important factors that can cause anticipated outcomes to differ
materially from actual outcomes include the impact of general
economic conditions, industry conditions, competition from other
industry participants, volatility of petroleum prices, the ability
to attract and retain qualified personnel, changes in laws or
regulation, currency fluctuations, continued ability to access
capital from available facilities and environmental risks.
References to "Dalmac', the "Corporation", "Company", "us", "we",
and "our" mean Dalmac Energy Inc. and its subsidiary Dalmac
Oilfield Services Inc. The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
We seek safe harbor.
SOURCE Dalmac Energy Inc.