Business
High Arctic Earns 9 cents per Share in the Quarter ended March 31, 2010
High Arctic Earns 9 cents per Share in the Quarter ended March 31, 2010
About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n May 17, 2010 (Canada NewsWire Group) -- /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 High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") today announced its results for the quarter ended March 31, 2010.\nCommenting on the results, Bruce Thiessen, CEO, said, "I am very pleased with the 1st quarter operating results. Our Canadian operations, in particular, were well ahead of plan in a challenging environment. With an anticipated successful completion of the recently announced debt restructuring plan, we will have a platform to take advantage of future opportunities and to continue to improve our financial results."\n\nSelected Comparative Financial Information\n\n\n >\n\n\nOverview of Results for Three Months Ended March 31, 2010\n\nThe Corporation was able to gain market share in Canada resulting in quarterly revenue that was largely flat and robust operating margins for the quarter, despite oil and gas drilling activity in Canada being at levels lower than in the first quarter of 2009. Equipment utilization for the quarter was 65% in Canada. Revenue did decrease by 24% in Papua New Guinea explaining the drop in overall revenues for the quarter compared to 2009. The decrease in Papua New Guinea revenue is mainly attributable to a hydraulic workover rig not operating in the first quarter of 2010. The services in Papua New Guinea are provided under longer term contracts but remain vulnerable to fluctuations in the drilling activities of the primary customer.\nThe Corporation generated $34.6 million in revenue from continuing operations during the quarter ended March 31, 2010; a decrease of $7.2 million (17%) from revenue of $41.8 million in the quarter ended March 31, 2009. Revenue from the Canadian operations was $12.7 million during the first quarter of 2010 which was comparable with the 2009 first quarter revenue of $12.9 million. Revenue from continuing international operations decreased by $6.9 million (24%) to $21.8 million for the quarter ended March 31, 2010 as compared to revenue of $28.7 million during the quarter ended March 31, 2009.\nEquipment maintenance schedules, upgrades and refurbishment plans are being r...