Business
High Arctic Announces First Quarter Results
/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\n\n\nTHE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n\n\nCONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, May 15 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n(the "Corporation" or "High Arctic") today announced its results for the first\nquarter ended March 31, 2008.\n\n\nFirst Quarter Highlights:\n\n- A 4% increase in revenue from $44.2 million in the quarter ending\n March 31, 2007 to $46.2 million in the quarter ending March 31, 2008.\n\n- A 1.0% increase in EBITDA from $10.3 million in the quarter ending\n March 31, 2007 to $10.4 million in the quarter ending March 31, 2008.\n\n- The net loss in the three months ended March 31, 2008 was\n $2.2 million, compared to net earnings of $5.0 million in the same\n period last year.\n\n- International revenue increased by approximately 105% to $25 million\n for the quarter ended March 31, 2008, as compared to $12.2 million\n for the quarter ended March 31, 2007. The increase in international\n revenue was primarily due to the success the Corporation is having in\n penetrating the Papua New Guinea market.\n\n- The Corporation's domestic revenues decreased by $10.8 million to\n $21.2 million for the quarter ended March 31, 2008, compared to\n domestic revenues of $32.0 million for the quarter ended March 31,\n 2007. The reduction in revenue was primarily due to the Corporation\n shutting down the domestic drilling division. Across the domestic\n product lines the Corporation's equipment utilization rates increased\n from 64% in the quarter ending March 31, 2007 to 73% in quarter\n ending March 31, 2008.\n\n- The Optimal Joint Venture with the Schlumberger group began\n operations in Mexico on January 1, 2008. The Corporation's 51% share\n of revenue from the joint venture was $1.5 million.\n\n\nThe first quarter EBITDA of $10.4 million represents a promising start to\nthe year as the Corporation focuses on returning to profitable operations. The\ndomestic market continued to be challenging in the face of lower oilfield\nactivity so High Arctic was pleased to hold its market share in its core\nsnubbing activities while seeing improvements in its support services. The\nemphasis in Canada will continue to be on controlling costs heading into the\...