Business
Ensign Energy Services Inc. Reports 2010 First Quarter Earnings
Ensign Energy Services Inc. Reports 2010 First Quarter Earnings
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\n\n\n\n May 10, 2010 (Canada NewsWire Group) -- \n\nOverview\n\nEnsign Energy Services Inc. (the "Company") recorded revenues of $352.8 million for the first quarter of 2010, a decrease of 12 percent from revenues of $400.4 million for the comparable quarter of 2009. Net income for the three months ended March 31, 2010 was $40.0 million ($0.26 per common share), a decline of 45 percent from $72.7 million compared to the first quarter of 2009. EBITDA (as defined below) totaled $94.9 million ($0.62 per common share) for the three months ended March 31, 2010 compared to EBITDA of $128.4 million ($0.84 per common share) for the three months ended March 31, 2009, a decline of 26 percent. Funds from operations increased six percent to $87.3 million ($0.57 per common share) during the first quarter of 2010 from $82.0 million ($0.54 per common share) in same period of the prior year. The decrease in the Company's first quarter financial results compared to the prior year is attributable to overall lower pricing which was partially offset by higher equipment utilization during the three months ended March 31, 2010. Further, the results of the United States and international operations in the first three months of 2010 were negatively impacted by the strengthening of the Canadian dollar, compared to the same period in 2009.\nGross margin was $107.7 million (30.5 percent of revenues) for the first quarter of 2010 compared with $140.6 million (35.1 percent of revenues) in the first quarter of 2009. Gross margin deteriorated compared to the prior year as base revenue rates in the first quarter of 2010 reflect the deterioration of revenue rates that occurred throughout much of 2009. Spot prices for uncontracted oilfield services equipment remained weak in the quarter due to relatively low demand and an oversupply of equipment in Canada and the United States.\nWorking capital at March 31, 2010 was $156.4 million compared to $107.9 million at December 31, 2009. Positive working capital and no long-term debt means that the balance sheet remains a source of strength for the Company. A strong balance sheet, financial discipline, commitment to safety, geographic diversification and the drive to be a technological leader are the cornerstones of a proven strategy that will enable the Company to continue to grow opportunistically and genera...