Business
Garneau Inc. Annual Report 2006
Garneau Inc. Annual Report 2006.
About this update from Green Arrow Resources, Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, March 30 /CNW/ - Garneau Inc.'s primary business is the\napplication of high performance protective coatings and linings for oil and\ngas pipeline protection and additionally, the design and manufacturing of\noilfield equipment for both domestic and international markets. During more\nthan 30 years of operating experience, Garneau Inc. ("Garneau") has developed\nsignificant expertise and innovative technology, and has maintained a\nlong-term focus on continuously improving the pipe coating process with\ncost-effective, quality coatings.\n\n\nVision\n------\n We are a company that uses technology and innovation to provide\n the world with ingenious, high-quality products and services for\n the oil industry.\n\nMission\n-------\n We provide our customers, partners and alliances with what they\n need, when they need it ... always.\n\nValues\n------\n We value innovation and ingenuity, keeping our commitments to each\n other and our stakeholders, open and honest relationships, and\n conducting our business in a way that is a "win/win" for all who\n work with us.\n\n\nGarneau Inc. is a public company with approximately 12.0 million shares\nissued and outstanding, trading on the Toronto Stock Exchange under the symbol\nGAR.\n\n\nTo the Shareholders:\n\n\nINDUSTRY OVERVIEW\n\n\nDemand for Garneau's small diameter coating products has historically\nbeen correlated to drilling activity. Oil and gas drilling activity exceeded\n23,441 wells for 2006, a 7% increase over 2005. After a strong start to the\ndrilling season and momentum therefrom, drilling and subsequent coating\nactivity slowed down during the latter part of the year as commodity prices\ndeclined.\n\n\nIndustry drilling forecasts project a decrease to a total of 21,000 wells\nto be drilled for the 2007 year. This is forecasted to be the first slowdown\nin the petroleum industry activity since 2002. Initial first quarter 2007\ncoating activity is well below the 2006 results as clients utilize previously\ncoated inventory. A significant drop in gas well drilling is forecasted, while\na 2000 well increase on the crude oil side is projected.\n\n\nDomestic manufacturing activity remained active for the entire 2006 year\nas high demand for oilfield drilling service and equipment resulted in\nprojects booked through to January 2007. A softening in...