Business
Western Energy Services Corp. Announces Q3 2009 Results
Western Energy Services Corp. Announces Q3 2009 Results
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\nNov. 30, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 30 /CNW/ -- Western Energy Services Corp. (WRG on the TSXV) (the \"Company\"), Calgary, Alberta filed today the interim unaudited consolidated financial statements for the nine months ended September 30, 2009 and related Management's Discussion and Analysis on www.sedar.com.The key operational results for the quarter ended September 30, 2009 are:- Quarterly revenues of $1,215,502 have declined $1,968,312 or 61.8%from the corresponding quarter in 2008. Year to date revenues of$4,319,681 have declined $5,271,586 or 55.0% from the levels achievedin 2008. These results reflect the continuing bleak state of the oiland gas services sector in Canada and the United States.- Of the year to date drop in revenues of $5.67 million, $4,432,888 or84% is directly attributable to a drop in US based revenues and inparticular the development of the Barnett shale gas reserves servicedfrom the Company's Abilene base. For the third quarter, the revenuesof both the Canadian and International operations encouraginglyshowed slight increases over the corresponding period in 2008.However US operations saw a 92% decline from the corresponding periodin 2008.- In the quarter the Company had a net loss of $1,649,209 as comparedto the $2.31 million loss experienced in the corresponding quarter in2008. When considered in light of the magnitude of the year over yeardecline in revenues the loss, although unsatisfactory, could havebeen larger had the Company not carried out certain cost-cuttingmeasures. Specifically in the quarter the Company cut a further threefield staff and one administrative position in Texas plus two fieldand one administrative position in Canada. The annualized savingsassociated with these cuts is approximately $369,000.- The Company has continued to seek purchasers for assets that aresurplus to its needs. However the sale of surplus assets has beenchallenging due to the amount of underutilized equipment currently onthe market. To date the Company has completed the sale of threepieces of equipment netting $650,820 in net proceeds. A further twoasset sales are under conditional sales agreements and if completedwill net approximately $1.3 million. These funds will be appliedagainst the outstanding debt obligations of the Company.- In the quarter the Company began to see renewed de...