Business
High Arctic Reports 2013 First Quarter Adjusted EBITDA of $12.6 Million
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About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES.  ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/ \n\n\nRED DEER, AB, May 14, 2013 /CNW/ - High Arctic Energy Services Inc.\n (TSX: HWO) (\"High Arctic\" or the \"Corporation\") today announced its\n operating and financial results for the quarter ended March 31, 2013.\n\n\nFirst Quarter Highlights\n\n\nThe operations in Papua New Guinea (PNG) generated significantly higher\n revenue in the first quarter which offset the slower activity levels in\n the Canadian operation.  Despite increased revenues, adjusted EBITDA\n decreased 12% to $12.6 million for the three months ended March 31,\n 2013 from $14.3 million for the same period in 2012 due primarily to a\n reduction in the Canadian operating margin.\n\n\nConsolidated revenue for the first quarter increased 6% to $44.8 million\n compared to $42.2 million for the same quarter in 2012.    The growth\n in revenue for the quarter was driven by increased activity in PNG with\n revenues of $29.9 million compared to $23.5 million for the first three\n months of 2012 as a result of having a second active drilling rig\n operating in 2013.  In addition, the Corporation continues to see\n increased revenues derived from its rental fleet with growth year over\n year of approximately $1.3 million from its rental operations in PNG.\n\n\nRevenue for Canada was $14.9 million for the first three months of 2013,\n a decrease of $3.8 million (20%) for the same period in 2012.  The\n first quarter saw reduced revenue levels in the core snubbing and\n nitrogen businesses as both activities were softer with overall\n industry activity down.   The operating margins in Canada were\n adversely affected by the reduced revenue levels and by competitive\n pricing conditions primarily in the nitrogen activity.\n\n\nConsolidated operating margins continued to be strong at 33% for the\n quarter but fell from 39% earned for the three months ended March 31,\n 2012.  The percentage was affected by the higher rig rental costs\n associated with operating an additional active rig in PNG in 2013 while\n the lower operating margins in Canada caused the overall reduction of\n $1.6 million in the operating margin. ...