Business
Western Energy Services Corp. Releases Second Quarter 2013 Financial and Operating Results and Declares Quarterly Dividend
CALGARY , July 31, 2013 /CNW/ - Western Energy Services Corp. ("Western" or the "Company")...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\nCALGARY, July 31, 2013 /CNW/ - Western Energy Services Corp. (\"Western\"\n or the \"Company\") (TSX: WRG) is pleased to release its second quarter\n 2013 financial and operating results.  Additional information relating\n to the Company, including the Company's financial statements and\n management's discussion and analysis as at and for the three and six\n months ended June 30, 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\nSecond Quarter 2013 Highlights:\n\n\n\nOn April 22, 2013, the Company acquired all of the issued and\n outstanding common shares of IROC Energy Services Corp. (\"IROC\") in a\n transaction valued at approximately $176.3 million.  At June 30, 2013,\n IROC's assets included 54 well servicing rigs and approximately $35\n million in oilfield rental equipment and three coiled tubing units.  As\n such, the Company exited the second quarter of 2013 with a fleet of 64\n well servicing rigs, 45 drilling rigs and an oilfield equipment rental\n division in Canada as well as 5 drilling rigs in the United States. \n The three coiled tubing units owned by IROC were not operated by\n Western after the acquisition and are expected to be sold in the third\n quarter of 2013;\n\n\nAs a result of the acquisition of IROC, results in the second quarter\n 2013 reflect $12.2 million in incremental revenue, $3.2 million in\n additional Gross Margin, and a $2.3 million increase in EBITDA. \n Additionally, as a result of the acquisition, $2.1 million in\n acquisition costs have been incurred, which impacted net income during\n the second quarter of 2013;\n\n\nRevenue totalled $50.8 million in the second quarter of 2013, a $6.0\n million increase (or 13%) over the same period in the prior year as a\n result of the increased size and scale of Western's production services\n segment following the acquisition of IROC, partially offset by lower\n contract drilling revenue mainly due to decreased day rates in both\n Canada and the United States;\n\n\nDuring the second quarter of 2013, utilization in the contract drilling\n segment averaged 28% in Canada as compared to the CAODC industry\n average of 18% and Western's second quarter 2012 average of 27%.  While\n in the United States, utilization in...