New West Energy Services Inc.
TSX VENTURE : NWE

New West Energy Services Inc.

December 30, 2014 18:49 ET

New West Energy Services Inc. Announces Its Second Quarter Results

CALGARY, ALBERTA--(Marketwired - Dec. 30, 2014) - New West Energy Services Inc. (TSX VENTURE:NWE) (the "Corporation") is pleased to announce the financial results for the Corporation for the second quarter ended October 31, 2014.

Operational and Financial Results for the Second Quarters Ended October 31, 2014 and 2013:

  • Revenue increased 37% to $6.64 million from $4.83 million in previous year equivalent period.
  • Gross margin of $1.48 million (2013 was $1.32 million).
  • Net income of $25,243 from operations after income tax (2013 had a net loss of $171,327).
  • Earnings per share (basic and diluted) from operations of $0.000 (2013 was a negative ($0.002)).
  • EBITDA was $472,161 (2013 was a negative ($35,534)). This calculation is a non-IFRS measure.
  • The Corporation continued the build out of the new diversified service operating in Beaverlodge, Alberta with the addition of key supervisory and operational staff to support the new equipment and services. The new services include combo and hydrovac trucks used on the completions and production sectors as well as quad wagons and tri trailers used in the hauling of frac water, oil and other production fluids. The Corporation plans to leverage its strong client base further to support this service.

Company Developments:

Total capital expenditures during the quarter amounted to $1.5 million for additional trucks and equipment. During the quarter the Corporation sold approximately five units from the equipment fleet which resulted in net proceeds of approximately $300,000. The sold units consisted of older model vacuum and water trucks as well as some underutilized end dump trucks and trailers.

Outlook and Strategy:

The Corporation has a solid client base and is looking to leverage this client base to offer its new diversified services. Management plans on continuing the diversification growth into the production sector and increasing the plant turnaround and bulk transport service in the future.

OVERVIEW

From the Slave Lake and Medicine Hat centres, the services provided are to the drilling projects while from Beaverlodge centre, the services are provided mainly to completions and production operations. Through its subsidiaries, the Corporation operates a fleet of straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with quad wagons and tri trailers, steamer/boiler units and environmental services. The Corporation operates throughout Western Canada in the drilling, completions and production sectors of the oil and gas industry with its main service centres located in Beaverlodge, Medicine Hat and Slave Lake, Alberta.

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

Contact Information

  • Gerry E. Kerkhoff
    New West Energy Services Inc.
    President & Chief Executive Officer
    Phone - 403.984.9798 or 1.888.977.2327 (BEAR)
    Fax - 403.984.9799
    Email - gkerkhoff@newwestenergyservices.com