Business
High Arctic Announces 2009 First Quarter Results; Appointment of New Director
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FA...
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\nTHE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\nCONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, May 15 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n("High Arctic" or the "Corporation") today announced its results for the\nquarter ended March 31, 2009.\n\n\nCommenting on the results, Michael Binnion, Chairman of the Board, said,\n"These are our first positive earnings since before we started our\nrestructuring process. We had earnings of $1.9 million this quarter in a very\ndifficult market. These results reflect over a year of very hard work and it\nis gratifying to see a tangible reward for our Company and shareholders. We\ndon't have any illusions that there isn't more work to do and there may be as\nmuch left to do as has been done. Even so, this quarter is a positive water\nshed and along with Steve Vasey joining our Board, shows that we are moving in\nthe right direction."\n\n\nThe global economic slowdown has reduced demand for oil and natural gas,\nwhich has led to significantly lower Canadian drilling activity levels and\ndownward pressures on the day rates. In response to these difficult market\nconditions, the Corporation began aligning its cost structure early in 2009,\nincluding reducing its Canadian workforce by approximately 40 percent by the\nend of April 2009. These cost reduction activities, combined with the positive\nresults of our Papua New Guinea operations, led to the Corporation reporting\nits first positive earnings since the first quarter of 2007.\n\n\nFinancial Highlights\n\n- Earnings for the quarter ended March 31, 2009 were $1.9 million\n ($0.04 per share) compared to a net loss of $2.2 million ($0.05 per\n share) for the same period of 2008. Earnings from continuing\n operations were $2.6 million ($0.06 per share) during the first\n quarter of 2009 as compared to earnings of $0.1 million ($0.00 per\n share) in the first quarter of 2008.\n\n- EBITDA of $10.7 million ($0.24 per share) for the three months ended\n March 31, 2009; an increase of $0.3 million from EBITDA of $10.4\n million ($0.25 per share) for the same quarter of 2008.\n\n- On April 27, 2009, the Corporation announced it had signed a non-\n binding expression of interest to sell its...