Business
Western Energy Services Corp. Releases Fourth Quarter and Year End 2012 Financial and Operating Results and Declares Quarterly Dividend
CALGARY, Feb. 27, 2013 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TS...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n\n\nCALGARY, Feb. 27, 2013 /CNW/ - Western Energy Services Corp. (\"Western\"\n or the \"Company\") (TSX: WRG) is pleased to release its fourth quarter\n and year end 2012 financial and operating results.  Additional\n information relating to the Company, including the Company's financial\n statements and management's discussion and analysis as at and for the\n years ended December 31, 2012 and 2011 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 totalled $83.3 million in the fourth quarter of 2012, a $18.0\n million decrease (or 18%) over the same period in the prior year as a\n result of lower utilization in Canada. The slowdown in oilfield service\n activity was due in part to uncertain economic conditions, increased\n pricing differentials on Canadian crude oil and lower natural gas\n prices, which resulted in reduced producer spending on capital\n programs. For the year ended December 31, 2012, revenue increased by\n $46.1 million (or 18%) to $308.6 million as compared to $262.5 million\n in the prior year, mainly due to an increased drilling rig fleet\n following the acquisition of Stoneham Drilling Trust in the prior year;\n\n\nFourth quarter EBITDA decreased by $10.1 million (or 24%) to $31.4\n million in 2012 (38% of revenue) as compared to $41.5 million in 2011\n (41% of revenue) due to lower activity levels. For the year ended\n December 31, 2012, EBITDA totalled $108.9 million (35% of revenue), an\n increase of 10% over the prior year due to improved day rates in Canada\n and an increased drilling rig fleet;\n\n\nNet income decreased by $11.2 million to $13.1 million in the fourth\n quarter of 2012 ($0.22 per basic common share) as compared to $24.3\n million in the same period in the prior year ($0.42 per basic common\n share) due to the decrease in EBITDA, higher finance costs and higher\n depreciation expense. Net income decreased by $19.6 million to $45.2\n million ($0.77 per basic common share) for the year ended December 31,\n 2012 as compared to $64.7 million ($1.25 per basic common share) in the\n prior year due in large part to the $10.1 million gain recognized on\n the sale of StimSol Canada Inc. in 2011. After normalizing for this\n transaction, net income for the year decre...