Ceiba Energy Services Inc.
TSX VENTURE : CEB

Ceiba Energy Services Inc.

November 27, 2013 18:32 ET

Ceiba Energy Services Announces Record Third Quarter 2013 Results

CALGARY, ALBERTA--(Marketwired - Nov. 27, 2013) -

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

Ceiba Energy Services Inc. (TSX VENTURE:CEB) ("Ceiba", "Ceiba Energy" or the "Company") has filed its Financial Statements and related Management`s Discussion and Analysis for the quarter ended September 30, 2013 which are available on the Company`s profile at www.sedar.com.

The Company is pleased to announce it has achieved positive operating margins in the three and nine months ended September 30, 2013 as compared to negative margins for the same periods in 2012. The revenue recorded in the third quarter of 2013 increased by approximately 390% over the reported revenues for the same period in 2012 and 33% higher than second quarter 2013. The Company continued to show improvement on financials, increasing revenue in the quarter by $679,031 over Q3 2012 and gross margin by $500,380 over Q3 2012. General and Administration expense in the quarter ending Sep 30, 2013 is lower by $270,824 as compared to the same quarter in 2012. This equates to a 33% cost improvement in the quarter ending September 30, 2013.

Results of Operations

Three Months ended September 30, Nine months ended September 30,
2013 2012 2013 2012
Revenue $852,902 $173,871 $2,240,924 $457,526
Operating expenses 455,829 $277,178 1,336,156 $639,865
Gross margin $397,073 $(103,307) $904,768 $(182,339)
Gross margin % 47% (59)% 40% (40)%
Three months ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
Total Income (Loss) and Comprehensive Income (Loss) for the Period (1,278,527) 1,226,606 (4,238,698) (1,423,221)
Add back:
Other income and expenses 462,832 (3,193,233) 1,056,289 (2,673,646)
Depreciation 71,572 21,047 210,550 72,200
Stock-based compensation 510,531 520,973 1,190,452 1,316,915
Commissioning costs - 491,739 - 626,742
Transaction costs 71,928 - 308,248 -
1,116,863 (2,159,474) 2,765,539 (657,789)
Adjusted EBITDA (161,664) (932,868) (1,473,159) (2,079,010)

Additional 2013 Third Quarter Highlights

  • The Company expanded its customer base by 40% and grew volume receipts to exceed 43,000 cubic metres, a quarter over quarter increase of 63%.
  • The volumes at Silver Valley increased 36% over the second quarter and 50% over the first quarter 2013 and volumes for quarter ending September 30, 2013 are 376% higher than same period volumes in 2012.
  • Gross margin for the Company increased to 47% in the second quarter from 36% in the second quarter of 2013, an improvement of 29%.
  • With a focus on improving financial performance towards achieving positive cash flow, the Company is pleased to see continued improvement in Adjusted EBITDA, a measure that the Company believes is a key indicator for the results generated by Ceiba's core business activities.
  • The Company completed its launch of the new corporate website, ceibaenergy.com, to support the repositioning of the Company as Ceiba Energy Services, a service Company focused on growth with a strong commitment to environment and community, represented by the Ceiba Tree.

Future Plans and Outlook

The opening of the Chamberlain facility on November 21, 2013 was a significant event for the Company and its contribution positions the Company to deliver positive Adjusted EBIDTA in the first quarter of 2014. With both Silver Valley and Chamberlain facilities operational as per Ceiba's previously announced expansion strategy for 2013, the Company is focusing on its capital and growth plans for 2014. Ceiba expects that these plans will include expanding services at the Silver Valley facility as well as initiating waste water disposal services at its Athabasca site. The Company continues to evaluate and seek additional acquisition and expansion opportunities.

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.

Ceiba Energy's website is work in progress at: www.ceibaenergy.com

Contact Information