Business
Pason Systems Inc. reports second quarter operating results
Pason Systems Inc. reports second quarter operating results
About this update from Pason Systems Inc.
[{"type":"text","content":"\n\n\n\n Aug. 9, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nStock Exchange: TSX\nSymbol: PSI\n\nCALGARY, Aug. 9 /CNW/ - Pason Systems Inc. ("Pason" or "the Company") today announced its results for the three-month and six-month periods ended June 30, 2010.\n\n\n >\n\n\nPresident's Message\n\nOperations Review\n\nThe oil and gas industry continues to earn its reputation for volatility as economic trends that were all in a downward spiral at this time last year have shown a surprising reversal towards a relatively strong market for oil and gas drilling. While certainly not back to boom level activity of 2008 in the United States and 2006 in Canada, the current market is providing ample opportunity for Pason to demonstrate its strengths and earn solid returns. During the second quarter Pason recorded revenue of $51.0 million, a 129% improvement over 2009. Again due to Pason's somewhat unusual oilfield service cost structure consisting of primarily fixed costs, this revenue increase amplified into a much greater improvement in EBITDA, cash flow and earnings. EBITDA rose to $21.5 million from less than a million in 2009 and cash flow increased to $18.8 million compared to $3.1 million in the prior year. Profitability returned with last year's $8.7 million loss reversed by a profit of $6.5 million this year.\nAs is always the case in the second quarter, which is a generally inactive quarter in Canada, Pason's results were dominated by activity in the United States. Leading the return to overall profitability was the segment profit of $14.0 million generated in the United States representing a significant improvement over the loss of $3.5 million logged last year. This dramatic reversal was driven by a surprisingly strong rebound in rig count and a very successful integration of the Petron employees and rental business within the United States. From last year's low of approximately 700 rigs the rig count has risen to...