Business
Western Energy Services Corp. Releases First Quarter 2013 Financial and Operating Results and Declares Quarterly Dividend
CALGARY, May 1, 2013 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX:...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, May 1, 2013 /CNW/ - Western Energy Services Corp. (\"Western\" or\n the \"Company\") (TSX: WRG) is pleased to release its first quarter 2013\n financial and operating results.  Additional information relating to\n the Company, including the Company's financial statements and\n management's discussion and analysis as at and for the three months\n ended March 31, 2013 and 2012 will be available on SEDAR at www.sedar.com.  All amounts are denominated in Canadian dollars (CDN$) unless\n otherwise identified.\n\n\nHighlights:\n\n\n\nRevenue in the first quarter of 2013 totalled $98.0 million, a $12.9\n million decrease (or 12%) over the prior year.  In Canada, while\n Western's drilling days remained constant, industry activity reduced\n and competition for ELR drilling rigs increased resulting in a decrease\n in Western's day rates.  In the United States, increased competition in\n the Williston basin of North Dakota, resulted in a decrease in drilling\n rig operating days and lower day rates;\n\n\nIn Canada, utilization in the contract drilling segment averaged 71% in\n the first quarter of 2013 which was 20% higher than the CAODC industry\n average of 59%.  Despite a larger rig fleet in Canada, operating days\n remained unchanged resulting in a decrease in utilization to 71%\n compared to 81% in the first quarter of 2012.  In the United States,\n utilization in the contract drilling segment averaged 48% in the first\n quarter of 2013 which is lower than the prior year average of 78%;\n\n\nEBITDA in the first quarter of 2013 totalled $34.4 million (35% of\n revenue) as compared to $44.2 million (40% of revenue) in the prior\n year.  The decrease in EBITDA of $9.8 million was less than the\n decrease in revenue, as the full impact of the drilling day rate\n decrease was partially offset by Western's ability to effectively\n control costs in a slower market.  Specifically, cash operating costs\n per operating day in the contract drilling segment decreased by 3% to\n approximately $18,000 in the first quarter of 2013 as compared to\n $18,600 in the same period of the prior year;\n\n\nDuring the first quarter of 2013, capital expenditures totalled $18.2\n million and included $14.0 million of expansion capital mainly related\n to Western's drilling rig build program, $1.7 mil...