Canadian Oilfield Solutions Corp.

Canadian Oilfield Solutions Corp.

May 23, 2014 16:41 ET

Canadian Oilfield Solutions Corp.: Release of Interim Results and Operations Update

CALGARY, ALBERTA--(Marketwired - May 23, 2014) -


Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS) has released its financial results for the three months ended March 31, 2014, and provides the following Operations and Corporate update.



The Corporation remains focused on the introduction of the Linear Motor technology. The Corporation successfully negotiated an exclusivity agreement for the technology for Canada, Mexico and for the Oman national company PDO. Designs were finalized in May 2014 and management expects the first shipment to arrive in Canada in time for a five well pilot test scheduled for this summer. In addition, discussions are underway in Mexico to define the parameters of a pilot test, which is anticipated to occur by the fourth quarter.

Our conventional submersible pump sales continued to experience solid growth, posting improved year-over-year revenues due to increased market share in Wyoming. Management expects continued organic growth from this division as it continues to demonstrate a high quality of service and products.

The submersible electric motor distribution network added modest revenue growth in the quarter, and higher sales volumes are expected as we enter the busy agriculture season. Management will continue to focus on expanding its sales into Canada and through existing relationships within the United States.


We experienced an increase in activity year-over-year in southern Mexico, with two significant projects underway in the quarter. Our client continues to work through a localized civil unrest issue that has led to restricted access to certain work sites. The client has indicated that a resolution to the unrest is coming and that work should resume sometime in June. The market continues to suggest that there is a solid inventory of projects in which to engage.


The Mexican national oil company Pemex has begun issuing tenders for flexible pipe work in Northern Mexico. Management will provide updates on the tenders as the awards become available.


The Corporation announced a significant debt financing of CAD $5 million in December 2013, which was fully subscribed including the overallotment as of March 3, 2014, for gross proceeds of CAD $5.75 million.


Selected Financial Information

(in 000's of USD $ unless otherwise stated)

For the three months ended March 31, 2014 2013
Revenue $ 1,519 $ 1,295
Cost of sales (898 ) (829 )
Gross Profit 621 466
Selling and administrative expense (714 ) (593 )
Net finance (expense) income (312 ) 298
(1,026 ) (295 )
Earnings (loss) before income taxes (405 ) 171
Income tax expense (242 ) (153 )
Net earnings (loss) for the period (647 ) 18
Net earnings (loss) per share - basic $ (0.01 ) $ 0.00
As at March 31, 2014 2013
Current assets $ 11,365 $ 13,539
Long-term assets 3,499 1,845
14,864 15,384
Current liabilities 6,904 5,157
Long-term liabilities 170 493
7,074 5,650
Working capital ratio 1.65 2.63
Debt (long-term and debentures) to equity ratio 33 % 29 %

The Corporation's full March 31, 2014, financial statements and corresponding management's discussion and analysis have been filed on the SEDAR website at

Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an array of specialized products and services that are used in the energy, mining, and industrial & agricultural water industries.

This document contains information that constitutes forward-looking information under applicable securities legislation. All statements, other than those of historical fact, which address activities, events, outcomes, results or developments that the Corporation anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", or other comparable terminology. In particular, this document contains statements regarding sales volumes and future operations of the Corporation.

Forward-looking information is based on current expectations, estimates, projections and assumptions, which the Corporation believes are reasonable but which may prove to be incorrect and therefore such forward-looking information should not be unduly relied upon. The forward-looking information in this document is based upon on various assumptions, including assumptions that the Corporation's contracts will be completed in accordance with their terms and according to schedule and that the projects will not be unduly delayed due to weather or underground conditions at the project sites as well as assumptions regarding industry activity: the general stability of the economic and political environment; the effect of market conditions on demand for the Corporation's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Corporation operates; and the ability of the Corporation to successfully market its products and services.

Further, there is a multitude of risks that may cause the Corporation's actual results to differ materially from those contemplated (whether expressly or by implication) in the forward-looking information in this document. These risks include, without limitation, risks of counterparties breaching contracts; construction risks; economic risks; the risk that revenues may not be received in the timeframe that is projected in this document; uncertainty regarding underground conditions; financing risks; solvency risks; tax risks; legislative and regulatory developments; customers' completion of expected work programs; fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; availability of products, qualified personnel, manufacturing capacity and raw materials, and the Corporation's successful performance under contracts. Readers are cautioned that the above list of factors is not exhaustive. Other factors which could cause actual results, performance or achievements of the Corporation to differ materially from those contemplated (whether expressly or by implication) in the forward-looking statements or other forward-looking information are disclosed in the Corporation's publicly filed disclosure documents.

The Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws. Because of these risks, uncertainties and assumptions, prospective investors should not place undue reliance on these forward-looking statements. The foregoing statements expressly qualify any forward-looking information stated in this document.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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