Business
IROC Energy Services Corp. announces year end and fourth quarter results for 2009
IROC Energy Services Corp. announces year end and fourth quarter results for 2009
About this update from Information Services Corp. Class A
[{"type":"text","content":"\n\n\n\n Apr. 28, 2010 (Canada NewsWire Group) -- /THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES/\n\n IROC Energy Services Corp. ("IROC" or the "Corporation") (TSX Venture Exchange: "ISC") announces the Company's financial results for the three and twelve months ended December 31, 2009.\n\n\n >\n\n\nThe Corporation is a product and service provider to oil and gas exploration, development and production companies with most of our customers and operations being located in western Canada, in the provinces of Alberta and Saskatchewan. IROC's business consists of three divisions. Eagle Well Servicing ("Eagle") contracts service rigs to oil and gas companies to perform various completion, testing and maintenance services on oil and natural gas wells. Eagle has offices and equipment in Red Deer, Grand Prairie and Lloydminster in Alberta and an office and equipment in Estevan, Saskatchewan with equipment being used in those geographic areas. AERO Rental Services ("AERO") provides oilfield equipment used primarily in oil and natural gas well drilling, completion and service operations with an office in Red Deer, Alberta and equipment being rented for use primarily in Alberta. Canada Tech manufactures and sells or rents surface and downhole monitoring tools and equipment used to measure pressure, temperature and other attributes of oil and natural gas wells with both domestic and international customers.\n\n\n >\n\nRevenue\n\nRevenue for the year ending December 31, 2009 decreased 25% to $49.0 million from $65 million in the previous year. Although IROC had additional equipment capacity year over year from the service rig build program which started in fiscal 2008 and added 2 new rigs into service during 2009, revenue declined due to lower year over year utilization on equipment in Eagle and Aero, competitive pressures on pricing and lower product sales volumes in Canada Tech. Low oil and natural gas prices drove customers to reduce their spending significantly during 2009 and reduced the demand for services in all of our businesses. The Alberta royalty changes implemented in 2009 also caused a shift of activity away from Alberta and into British Columbia and Saskatchewan where the Royalty structures remained competitive and there wa...