Ceiba Energy Services Inc.
TSX VENTURE : CEB

Ceiba Energy Services Inc.

April 24, 2014 09:00 ET

Ceiba Energy Services Announces Fourth Quarter & Year End 2013 Results

CALGARY, ALBERTA--(Marketwired - April 24, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Ceiba Energy Services Inc. ("Ceiba Energy" or the "Company") (TSX VENTURE:CEB), has filed its Financial Statements and related Management`s Discussion and Analysis for the quarter and year ended December 31, 2013 which are available on the Company`s profile at www.sedar.com.

The Company is pleased to announce it has achieved record revenues for the year and positive operating margins in the three and twelve months ended December 31, 2013 as compared to negative margins for the same periods in 2012. The revenue recorded in the fourth quarter of 2013 increased by approximately 157% over reported revenues for the same period. The Company continued to show improvement on financials, increasing revenue in the quarter by $ 483,617 over Q4 2012 and gross margin by $270,573 over Q4 2012.

Results of Operations

Three months ended
December 31
Year Ended
December 31
2013 2012 2013 2012
Revenue $790,618 $307,001 $3,031,742 $764,527
Operating expenses $582,618 $369,574 1,911,890 1,112,948
Gross margin $208,000 ($62,573) 1,119,652 (348,421)
Gross margin % 26% (20%) 37% (46)%

Three months ended
December 31
Year Ended
December 31
2013 2012 2013 2012
Total Income (Loss) and Comprehensive Income (Loss) for the Period (3,342,484) (1,855,959) (7,581,181) (3,277,180)
Add back:
Finance Costs 558,753 (105,685) 1,489,079 (12,498)
Depreciation 169,016 134,935 379,566 207,135
Amortization of Intangibles 2,023,448 1,012,448 2,023,448 1,012,448
Income Taxes - - - -
EBITDA (591,267) (814,262) (3,689,088) (2,070,095)
Add back:
Stock-based Compensation 518,714 (401,409) 1,709,166 915,506
Accretion 7,307 24,860 105,273 844,719
Transaction costs 21,928 424,023 330,176 424,032
Commissioning costs - - - 627,492
Unrealized gain - - - (3,561,405)
Adjusted EBITDA (43,318) (766,788) (1,544,473) (2,819,751)

2013 Fourth Quarter and Year End Comments and Highlights

  • 2013 was a successful turnaround year for Ceiba. Over the year, the Company successfully executed on its corporate strategy to ramp up output at the Silver Valley site and complete construction of the Chamberlain Custom Treating Facility, opening the latter in late November.
  • Fluid volumes processed through the facilities in the fourth quarter rose to approximately 58,000 m3, an increase of 77% over the same quarter in 2012.
  • Total volumes for the year ending December 31, 2013 were 585% higher than the same period volumes in 2012.
  • Revenues in the last three months increased by $483,617, or 157% over the same period in 2012.
  • Continued view of low to moderate heavy oil volumes at the Kinsella blending and terminal facility led to a goodwill impairment of $2,023,448, which contributed to the net loss for the Company.
  • The Company achieved positive operating margin for the year ended December 31, 2013, $1,119,652, as compared to negative margin, ($348,421), for the year ended 2012.
  • Adjusted EBITDA, a measure that Ceiba uses to gauge operational performance, improved by $0.73 million year over year and improved from a loss of ($0.77) million in Q4 2012 to a loss of ($0.04) million in Q4 2013.

Future Plans and Outlook

With the Cam-Star acquisition complete and Chamberlain facility on-line, Ceiba will be operating with five disposal locations in 2014 in comparison to one for the majority of the 2013 year. The Company expects to continue to execute on its organic growth strategy, utilizing funds from its previously announced bought deal, and open its Athabasca facility. Ceiba will also be looking to expand services at Silver Valley and Chamberlain.

About Ceiba Energy

Ceiba Energy (TSX VENTURE:CEB) provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba Energy develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production.

Reader Advisory

Certain information regarding Ceiba Energy in this news release, including management's assessment of the expected time of completion of the Chamberlain facility and the expected capacity of the Silver Valley facility, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with facility construction and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Ceiba Energy's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and Ceiba Energy does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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 the accuracy of this release.

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