Business
Western Energy Services Corp. Releases Third Quarter 2013 Financial and Operating Results and Declares Quarterly Dividend
CALGARY , Oct. 30, 2013 /CNW/ - Western Energy Services Corp. ("Western" or the "Company")...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\nCALGARY, Oct. 30, 2013 /CNW/ - Western Energy Services Corp. (\"Western\"\n or the \"Company\") (TSX: WRG) is pleased to release its third 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 nine\n months ended September 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\nThird Quarter 2013 Highlights:\n\n\n\nOperating Revenue totalled $96.5 million, a $31.5 million increase (or\n 48%) over the same period in the prior year as a result of the\n increased size and scale of Western's production services segment\n following the acquisition of IROC Energy Services Corp. (\"IROC\") on\n April 22, 2013, as well as a larger average drilling rig fleet and\n increased utilization in the contract drilling segment in both Canada\n and the United States;\n\n\nUtilization in the Canadian contract drilling segment improved to 56% as\n compared to the CAODC industry average of 40%, which was unchanged from\n the same period in the prior year, and Western's third quarter 2012\n average of 53%.  In the United States, contract drilling utilization\n averaged 88% as compared to 60% in the same period of the prior year\n due to increased marketing efforts and strong operational performance;\n\n\nTotal well servicing hours in Western's production services segment\n increased significantly following the acquisition of IROC in the second\n quarter, increasing by 1,586% as compared to the same period in the\n prior year.  Likewise, well servicing utilization averaged 51% as\n compared to 39% in the same period of the prior year;\n\n\nEBITDA totalled $30.3 million, a $6.4 million increase (or 27%) over the\n same period in the prior year.  While the Company was able to\n effectively control costs in the contract drilling segment quarter over\n quarter, as a percentage of Operating Revenue, EBITDA declined from 37%\n in the third quarter of 2012 to 31% in the third quarter of 2013,\n mainly due to lower contract drilling day rates in both Canada and the\n United States;\n\n\nCapital expenditures totalled $31.0 million and include $25.5 million of\n expansion capi...