New West Energy Services Inc.
TSX VENTURE : NWE

New West Energy Services Inc.

September 29, 2014 19:14 ET

New West Energy Services Inc. Announces Its First Quarter Results

CALGARY, ALBERTA--(Marketwired - Sept. 29, 2014) - New West Energy Services Inc. (TSX VENTURE:NWE) (the "Corporation") is pleased to announce the financial results for the Corporation for its first quarter ended July 31, 2014.

Operational and Financial Results for the First Quarters Ended July 31, 2014 and 2013:

  • Revenue of $5.24 million ($3.57 million for 2013).
  • Gross margin of $1.02 million ($1 million for 2013).
  • Net loss of $532,000 from operations before income tax (net income of $4,000 for 2013).
  • Earnings per share (basic and diluted) from operations of ($0.005) ($0.000 for 2013).
  • EBITDA was ($176,000) for 2014 ($173,000 for 2013). This calculation is a non-IFRS measure.
  • The Corporation continued to expand its new diversified service, based in Beaverlodge, Alberta, with the addition of two tri drive combo vacuum trucks and two quad wagon trailers and is now well positioned to enter the completions and production sector of the oil and gas industry.
  • The Corporation initiated its diversification strategy following the winter drilling season which involved moving some of the vacuum and water trucks from the drilling project related service to the callout type service operating from Beaverlodge. This decrease in the drilling project service equipment fleet is expected to increase overall margins by reducing the high swing in utilization between summer and winter months and the costs involved in hiring and retaining labour. The new operation in Beaverlodge has an equipment fleet of approximately 18 units comprised of combo vacs, hydrovacs, tank trucks and steamer units mostly operating in the completions and production sectors.

Company Developments:

  • The Corporation increased productive capacity and updated the equipment fleet during the quarter with the addition of seven units along with the disposal of some of the older units in the fleet. The overall heavy equipment fleet currently stands at 44 units.
  • Total capital expenditures during the quarter amounted to $2.3 million for additional trucks and equipment.

Outlook and Strategy:

The Corporation is implementing its diversification strategy for services and equipment upon completion of this fiscal year end which is expected to increase revenues and margins and reduce the fluctuations in equipment utilization between the summer and winter seasons. As part of this process, the Corporation plans on diversifying its equipment fleet from drilling related services to production type services to offset the swings in drilling utilization.

OVERVIEW

The Corporation operates in the oilfield service industry in Canada through two wholly owned subsidiaries - BearStone Environmental Solutions Inc. and Porterco Oilfield Services Inc. BearStone provides environmental services to the upstream oil and gas industry and also operates a fleet of specialized vacuum, hydrovac and water trucks. Porterco operates a fleet of trucks and trailers for hauling oil contaminated drill cuttings as well as providing equipment rental and custom fabrication services.

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

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