Business
High Arctic Announces Second 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, Aug. 14 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n(the "Corporation" or "High Arctic") today announced its results for the\nsecond quarter ended June 30, 2008.\n\n\nSecond Quarter Highlights:\n\n- Closed asset sales of $12.2 million during the quarter and negotiated\n additional sales of $12.2 after quarter end for net debt reduction of\n $24.4 million from June 6, 2008 to date.\n\n- A $17.9 million increase (102%) in revenue to $35.5 million compared\n to $17.6 million in the quarter ending June 30, 2007.\n\n- A $9.3 million increase in EBITDA from negative EBITDA of\n $7.9 million in the quarter ending June 30, 2007 to positive EBITDA\n of $1.4 million in the quarter ending June 30, 2008.\n\n- The strategy to diversify the revenue base by expanding into the\n international marketplace enabled the Corporation to overcome some of\n the seasonal weaknesses which occur in the Canadian marketplace\n during the second quarter. In particular, the Papua New Guinea\n business has proven to be very successful and is driving much of the\n growth. As a result, the Corporation's financial performance from\n operations has improved dramatically during the second quarter of\n 2008 as compared to the same period in 2007.\n\n- Optimal Pressure Drilling Services (a joint venture with\n Schlumberger) contributed $1.7 million in revenue to the Corporation\n during the quarter ended June 30, 2008. The business in Mexico has\n developed somewhat slower than originally projected but is showing\n positive signs for the second half of the year.\n\n- The Corporation's Canadian equipment utilization rates were 28.4% for\n the three month period ended June 30, 2008, compared to 21.3% for the\n same period in 2007. These are compared to the Canadian Association\n of Oilfield Drilling Contractors ("CAODC") rig utilization averages\n of 19.2% and 17.1% for the three month periods ended June 30, 2008\n and June 30, 2007, respectively.\n\n\nSecond Quarter Review\n\n\nInternational revenue increased by $18.5 million (199%) to $27.8 million\nfor the quarter ended June 30, 2008, as compared to $9.3 mill...