Business
Mullen Group Ltd. Announces 2014 Business Plan and Declaration of Dividend
OKOTOKS, AB , Jan. 20, 2014 /CNW/ - (TSX:MTL)  Mullen Group Ltd. (" Mullen Group " ...
About this update from Mullen Group Ltd.
[{"type":"text","content":"\n\n\nOKOTOKS, AB, Jan. 20, 2014 /CNW/ - (TSX:MTL)  Mullen Group Ltd. (\"Mullen Group\" and/or the \"Corporation\") announced today its capital expenditure plan for 2014 as approved by\n the Board of Directors (the \"Board\").  The Board considered a wide range of economic issues, commodity\n pricing predictions and forecasted drilling activity for the Western\n Canadian Sedimentary Basin as well as recent developments in the\n anticipated build out of Canada's infrastructure for LNG and crude\n oil.  The capital budget for 2014 is set at $100.0 million, with\n $75.0 million allocated to the Oilfield Services segment and\n $25.0 million allocated to the Trucking/Logistics segment.  These funds\n will be used to acquire new trucks, trailers and specialized equipment\n to support the on-going operations of Mullen Group's business units. \n As the need arises, the Board will consider additional capital requests\n throughout the year for special projects, the purchase and development\n of land, or for acquisitions.\n\n\n\"We expect 2014 to be another good year for the Mullen Group, although\n growth will continue to be difficult to achieve given the current\n economic outlook as well as the near term prospects for the oil and gas\n sector in western Canada.  However, looking to the future, growth\n opportunities are much brighter, which is the reasoning behind the\n Board approving our request for a $100.0 million capital budget in\n 2014.  Quite simply, we want to be prepared\", said Murray Mullen,\n Chairman and Chief Executive Officer.\n\n\n\"The discussions surrounding LNG exports through Canada's west coast, as\n well as crude oil pipelines and infrastructure projects are progressing\n and appear to be constructive, although there have been few definitive\n announcements to date.  One exception is crude by rail, with strong\n indications that take-away capacity for crude oil from western Canada\n could rise to one million barrels per day by year-end.  Our view is\n that our customers will benefit from this new capacity.  In addition,\n it is worth noting that while two percent annual GDP economic growth is\n not in itself significant, we believe that there is a compounding\n affect to this growth that should ultimately benefit our\n Trucking/Logistics segment...