Business
Western Energy Services Corp. Announces Q2 Results
Western Energy Services Corp. Announces Q2 Results.
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. 30 /CNW/ - The second quarter of 2007 saw Western increase\nits quarterly revenues compared to 2006, continue its positive income from\ncontinuing operations before amortization, interest and income taxes\n("EBITDA") and improve its pre tax bottom line as compared to 2006. This\ndespite the second quarter being a seasonally slow quarter and during a\nsignificant industry wide cyclical downturn affecting Canadian oilfield\nservice companies. Highlights for the quarter include:\n\n\n- Quarterly revenues are up 34% over 2006.\n\n- General and administrative expenses for the quarter are down 36% from\n 2006.\n\n- Quarterly EBITDA improved $927,575 from 2006\n\n\nDuring the later part of 2006 and into 2007 Western's new management team\ncontinued the implementation of a turnaround plan and change in direction for\nthe Company. The key components of the turnaround plan are: shifting the\ndirection of the Company's business to the less volatile production\noptimization though stimulation services; concentrating the Company's services\nin fewer operational bases; increasing efficiencies and reducing costs. The\nCompany's plan took a big step forward in the second quarter with the purchase\nof the assets of Grenville Energy Partnership ("Grenville") and by disposing\nof its non core well testing assets.\n\n\nQuarterly revenues for the second quarter increased by 34%, year over\nyear compared to 2006. Revenues were $2,777,477 for the three months ended\nJune 30, 2007 compared to $2,073,318 for the three months ended June 30, 2006.\nThis increase was achieved as a result of the Company's new direction and\ndespite an industry wide downturn for Canadian oilfield service companies. The\nsecond quarter is a seasonally slow quarter and revenues for the three months\nended June 30, 2007 were down 47% from the first quarter of 2007, this however\nis a dramatic improvement over the 61% decline experienced comparing the\nsecond to first quarters of 2006. Unusually wet weather in the state of Texas,\nwhere the Western's US operations are based, also contributed to the lower\nsecond quarter results. Revenues in Texas were off 9% in the second quarter\ncompared to the second quarter of 2006. Revenues to date during the third\nquarter in Texas show an impro...