Business
High Arctic delivers Adjusted EBITDA of $14.1 million
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About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\n\nCALGARY, Aug.12, 2015 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) (\"High Arctic\" or the \"Corporation\") today announced its operating and financial results for the quarter ended June 30, 2015.  \n\nTim Braun, High Arctic's Chief Executive Officer, stated: \"Full utilization of Rig's 103,104 and 115 for the quarter, along with stronger than anticipated Canadian utilization operating under a reduced cost structure, allowed the Corporation to deliver improved quarter over quarter results. With the recent arrival of Rig 116 into PNG, the percentage of revenue generated from drilling services will continue to increase and we remain on track to deliver improved year over year results.  The announcement by the PRL 15 joint venture participants of the potential development of a second PNG facility named the Papua LNG Project is a positive indicator for additional development in the country despite the current global commodity prices.\" \n\nHighlights\n\n\nAdjusted EBITDA was $14.1 million for the three months ended June 30, 2015 (2014 - $11.1 million), the Corporation's most successful second quarter in its history.   \n\n\nIncreases in PNG's drilling services and the effects of a stronger U.S. dollar offset lower PNG rentals and Canadian revenues resulting in an 11% increase in revenues for the first half of 2015 of $93.4 million (2014 - $84.3 million).  Revenues earned in the second quarter of 2015 increased by 22% to $48.7 million (Q2 2014 - $39.8 million).\n\n\nThe Corporation expects growth in both revenues and EBITDA to continue in 2015 as a result of its investment in two heli-portable drilling rigs.  The first rig commenced earning moving rate revenues in mid-March and spudded its first well in mid-June.  The second rig has recently arrived in PNG and will commence earning stand-by revenues upon completion of customs clearance. \nCanadian results were positively affected by rationalization of equipment and personnel initiated in the first quarter.\n\n\nHigh Arctic declared monthly dividends totaling $5.5 million during the first six months of 2015 representing a trailing twelve mo...