Business
Western Energy Services Corp. Announces Q2 2008 Results
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/ CALGARY, Aug. 28 /CNW/ - Western Energy Services...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/\n\n\nCALGARY, Aug. 28 /CNW/ - Western Energy Services Corp. (WSV on the TSXV),\nCalgary, Alberta is pleased to announce its results for the second quarter of\n2008. Highlights for the second quarter of 2008 include:\n\n\n- Revenues for the second quarter of 2008 were up 11% compared to the\n second quarter in 2007.\n\n- Contribution Margin (Revenues less Operating and G&A expenses) for\n the second quarter of 2008 improved $311,481 to $40,918 from the\n negative contribution margin realized in the second quarter of 2007.\n\n- Primarily as a result of a $562,940 negative swing caused by\n fluctuating exchange rates, EBITDA (Income before amortization,\n interest and income taxes) for the quarter declined $289,068 from\n 2007 levels.\n\n- Quarterly revenues in the US are up 56% over comparable 2007 levels\n or 43% after adjusting for exchange rate fluctuations.\n\n- General and administrative expenses ("G&A") continue to be reduced\n and are down 22% compared to the second quarter of 2007.\n\n\nThe Company continued to grow its business in the second quarter of 2008\nby posting an 11% increase in revenues over the previous year. Quarterly\nrevenues totalled $3,071,372 during the three months ended June 30, 2008\ncontrasted with $2,777,477 for the three months ended June 30, 2007. This was\nachieved despite the material negative impacts of the continuing slowdown in\noil & gas activity in Canada, the unusually long "breakup" in Western Canada\nand fluctuations in the exchange rate between the US and Canadian dollars.\n\n\nRevenues from US operations, expressed in US dollars, increased 56% in\nthe three months ended June 30, 2008 as compared to the same period in 2007.\nHowever declines in the US currency relative to the Canadian dollar had the\neffect of reducing this growth to 43% when these revenues are reported in\nCanadian dollars. The continued growth in this revenue stream is reflective of\nthe strong market conditions for oil field services in the United States and\ndemand for the Company's services, particularly nitrogen pumping and\ntransportation services. To meet this demand the Company has continued to grow\nits US based fleet of equipment.\n\n\nRevenues from Canadian operations for the first two quarters of 2008,\nfrom the core bus...