Business
Trican Well Service Ltd. Reports Annual Results for 2019
Calgary, Alberta--(Newsfile Corp. - February 27, 2020) - Trican Well Service Ltd. (TSX: TCW) (...
About this update from Trican Well Service Ltd.
[{"type":"text","content":"Trican Well Service Ltd. Reports Annual Results for 2019Calgary, Alberta--(Newsfile Corp. - February 27, 2020) - Trican Well Service Ltd. (TSX: TCW) (\"Trican\" or the \"Company\") is pleased to announce its annual results for 2019. The following news release should be read in conjunction with Management's Discussion and Analysis, the audited annual consolidated financial statements and related notes of Trican for the year-ended December 31, 2019, as well as the Annual Information Form for the year ended December 31, 2018. All of the above documents are available on SEDAR at www.sedar.com. HIGHLIGHTS Some of the key events from 2019: The Company responded to weakness in market conditions by continuing to drive cost efficiencies deeper into the business, consolidating base locations to better align operations with market conditions, and implementing cost reductions that are anticipated to result in run-rate annualized savings of $40 million. Maintained our strong base of customers and provided excellent service and improved operating efficiencies while also continuously improving our safety performance. Investments into our Coiled Tubing service line, that were started in 2018 and continued into 2019, enabled the business unit to add two Coiled Tubing units in response to customer demand. This business unit generated 27% higher year over year revenue and substantially improved profitability. Selective capital investments into our existing business increased our natural gas powered dual fuel equipment fleet and introduced new technology to reduce tractors on location. The investments into dual fuel will reduce fuel expenses and the tractor reduction technology will reduce fuel and maintenance expense. Both technologies have the potential to reduce greenhouse gas (GHG) emissions by replacing diesel with cleaner burning natural gas and lowering the idling hours for tractors on location. Trican has approximately 145,000 HHP of dual fuel capacity, nearly half our active fleet. Significant progress on monetizing permanently idled assets that are no longer competitive or required in the WCSB. Trican realized approximately $32 million in proceeds from non-core equipment and real estate asset sales in 2019. Selling prices exceeded net book value and resulted in gains on asset sales of approximately $12 million for the year. The Company ha...