Trican Reports Second Quarter Results for 2015

CALGARY, ALBERTA--(Marketwired - Aug. 14, 2015) - Trican Well Service Ltd. (TSX:TCW) -

		Three months ended				Six months ended
		June 30,		June 30,		June 30,		June 30,
($ millions, except per share amounts; unaudited)		2015		2014		2015		2014
Revenue		$230.6		$534.6		$706.7		$1,177.8
Adjusted operating income / (loss)*		(37.2	)	1.3		(42.3	)	43.7
Operating income / (loss) *		(40.0	)	1.3		(59.2	)	43.7
Gross profit / (loss)		(65.6	)	(10.3	)	(114.5	)	13.4
Net loss		(283.2	)	(43.1	)	(318.9	)	(51.6	)
Loss per share	(basic)	($1.90	)	($0.29	)	($2.14	)	($0.35	)
	(diluted)	($1.90	)	($0.29	)	($2.14	)	($0.35	)
Adjusted loss*		(85.3	)	(36.2	)	(145.6	)	(44.8	)
Adjusted loss per share*	(basic)	($0.57	)	($0.24	)	($0.98	)	($0.30	)
	(diluted)	($0.57	)	($0.24	)	($0.98	)	($0.30	)
Funds provided by/(used in) operations*		(50.3	)	(11.5	)	(78.6	)	26.5

Notes:

* Trican makes reference to operating income/(loss), adjusted operating income/(loss), adjusted profit/(loss) and funds provided by operations. These measures are not recognized under International Financial Reporting Standards (IFRS) and are considered non-IFRS measures. Management believes that, in addition to gross profit/(loss) and profit/(loss), operating income/(loss), adjusted operating income/(loss), adjusted profit/(loss) and funds provided by operations are useful supplemental measures. Operating income/(loss) provides investors with an indication of profit/(loss) before depreciation and amortization, foreign exchange gains and losses, other (income)/loss, finance costs and income tax expense/(recovery). Adjusted operating income/(loss) provides investors with an indication of comparable operating income/(loss), which exclude items that are significant but not reflective of our underlying operations for the period. Adjusted profit/(loss) provides investors with information on profit/(loss) excluding asset impairments, the impact of foreign currency gains/losses and the non-cash effect of stock-based compensation expense. Funds provided by operations provide investors with an indication of cash available for capital commitments, debt repayments and other expenditures. Investors should be cautioned that operating income/(loss), adjusted operating income/(loss), adjusted profit/(loss), and funds provided by/(used in) operations should not be construed as an alternative to gross profit/(loss) or profit/(loss) determined in accordance with IFRS as an indicator of Trican's performance. Trican's method of calculating operating income/(loss), adjusted operating income/(loss), adjusted profit/(loss) and funds provided by operations may differ from that of other companies and accordingly may not be comparable to measures used by other companies. See also "Non-IFRS Disclosure" section of this report.

SECOND QUARTER HIGHLIGHTS

Consolidated revenue for the second quarter of 2015 was $230.6 million, a decrease of 57% compared to the second quarter of 2014. The adjusted loss was $85.3 million and adjusted diluted loss per share was $0.57 compared to an adjusted loss of $36.2 million and adjusted diluted loss per share of $0.24 in the same period of 2014. Funds used in operations were $50.3 million compared to funds used in operations of $11.5 million in the second quarter of 2014.

Subsequent to the end of the second quarter, Trican entered into a definitive agreement with RN Assets LLC, an indirect subsidiary of Rosneft Oil Company, for the sale of Trican's Russian pressure pumping business for a purchase price of USD$140 million or approximately CAD$182 million, with customary working capital and net debt adjustments to be determined. Trican intends to apply the net proceeds from this sale to reduce its outstanding debt. Trican and the Purchaser have now entered into definitive agreements for the sale of the Russian business, and the purchaser has obtained approval of the Russia Federal Antimonopoly Service for the transaction. Closing of the transaction is scheduled for August 20, 2015, and is subject to certain conditions precedent and the preparation and delivery of customary closing documentation.

Trican and Rosneft are also continuing to negotiate for the sale of Trican's Kazakhstan pressure pumping business. If the parties reach agreement on the terms of the sale of the Kazakhstan business, Trican expects that such sale would close in Q4 2015. There is no guarantee that the parties will be able to agree on terms regarding the sale of the Kazakhstan business or complete the transaction on the terms agreed. Further, such transaction would be subject to approval by the Kazakhstan Antimonopoly Body, and final corporate approvals by Trican and the Purchaser.

Trican continues to negotiate covenant relief with its lenders and meaningful progress in the negotiations has been made to date. No agreements have been reached with the lenders as of the date of this report and there can be no assurance that such agreements will be reached. The closing of the sale of the Russian business is a positive step for the Company and we remain optimistic an agreement with covenant relief will be reached with the lenders.

Canadian operations generated $81.8 million of revenue and an operating loss of $12.7 million during the 2015 second quarter compared to Q2 2014 revenue of $171.9 million and an operating loss of $8.0 million. The adjusted operating loss was $11.8 million or 14.4% of revenue and excludes severance costs recorded during the 2015 second quarter. Canadian results were negatively impacted by reduced drilling and completions activity caused by low commodity prices and the impact of spring break-up. Activity levels were very low during April and May, but meaningfully rebounded in June. Reduced customer demand resulted in a sequential decline in pricing of approximately 10%. Management has been focused on adjusting the Canadian operations' cost structure to current operating conditions and experienced price reductions during the quarter for proppant, cement, chemicals, third party hauling, fuel and parts in the 10-15% range. In addition, management has reduced the Canadian operations' fixed cost structure on a sequential basis by 44%. Approximately 35% of the Canadian operations' equipment remains parked and we will continue to monitor activity and pricing levels and adjust our active equipment fleet and cost structure accordingly.

U.S. operations generated $79.4 million of revenue and an operating loss of $24.6 million during the 2015 second quarter compared to Q2 2014 revenue of $267.6 million and operating income of $12.0 million. The adjusted operating loss was $22.7 million or 28.6% of revenue and excludes severance costs of $1.9 recorded during the 2015 second quarter. Reduced drilling and completions activity caused by low oil and gas prices resulted in a significant sequential decline in utilization and pricing in our U.S. operations. We parked eight of our sixteen crews in the U.S. in the second quarter and utilization on the remaining eight (8) crews bottomed in April and May with approximately 20% of our active equipment being utilized and rebounded in June with approximately 60% utilization of our active fleet. All of our parked equipment could be put back into service at any time with minimal cost. Pricing declined an additional 15% and job count declined 32% on a sequential basis. Management has meaningfully reduced the U.S. operations' cost structure and continues to adjust it to current industry activity and operating conditions. U.S. operational results benefitted from price reductions in the 10-15% range for proppant, cement, chemicals, third party hauling, fuel and parts. Management has also reduced the U.S. operations' fixed cost structure by 34% during the second quarter on a sequential basis. Management will continue to monitor activity and pricing levels and adjust our active equipment fleet and cost structure accordingly.

International operations generated $69.4 million in revenue and operating income of $10.0 million during the 2015 second quarter compared to Q2 2014 revenue of $95.1 million and operating income of $15.6 million. The devaluation of the Russian ruble had the most significant impact on second quarter financial results as the ruble/Canadian dollar exchange rate declined 34% compared to the 2014 second quarter. Russian activity was relatively strong during the quarter; however, this strength was partially offset by weak activity in Kazakhstan and Australia. Subsequent to the end of the second quarter, Trican decided to cease operations in Australia and suspend operations in Saudi Arabia due to weak operating activity and cash flow.

Corporate expenses excluding the impact of share-unit expenses decreased $4.2 million or 26% relative to the 2015 first quarter. Headcount and salary reductions as well as a tight cost control over discretionary expenses largely account for the significant cost decrease.

COMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)
										Quarter-
										Over-
				% of				% of		Quarter		%
Three months ended June 30,		2015		Revenue		2014		Revenue		Change		Change

Revenue		230,602		100	%	534,599		100.0	%	(303,997	)	(57	%)
Expenses
	Materials and operating	247,272		107.2	%	498,052		93.2	%	(250,780	)	(50	%)
	General and administrative	23,365		10.1	%	35,264		6.6	%	(11,899	)	(34	%)
Operating income/(loss)*		(40,035	)	(17.3	%)	1,283		0.2	%	(41,318	)	(3,220	%)
	Finance costs	8,595		3.7	%	9,536		1.8	%	(941	)	(10	%)
	Depreciation and amortization	51,402		22.3	%	49,136		9.2	%	2,266		5	%
	Foreign exchange (gain)/loss	2,923		1.3	%	4,992		0.9	%	(2,069	)	(41	%)
	Other (income)/loss	(2,033	)	(0.9	%)	(1,359	)	(0.3	%)	(674	)	50	%
Loss before income taxes and non-controlling interest		(100,922	)	(43.7	%)	(61,022	)	(11.4	%)	(39,900	)	(65	%)
Income tax expense/(recovery)		182,647		79.2	%	(17,470	)	(3.3	%)	200,117		1,145	%
Non-controlling interest		(394	)	(0.2	%)	(448	)	(0.1	%)	54		(12	%)
Net loss		(283,175	)	(122.7	%)	(43,104	)	(8.1	%)	(240,071	)	(557	%)

Adjusted operating income/(loss)*		(37,206	)	(16.1	%)	1,283		0.2	%	(38,489	)	(3,000	%)

Gross loss*		(67,631	)	(28.5	%)	(10,256	)	(1.9	%)	(55,375	)	(540	%)

* See the first page of this report for a description of operating income/(loss) and adjusted operating income/(loss). Gross profit/(loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income/(loss).


CANADIAN OPERATIONS
($ thousands, except revenue per job, unaudited)
		June 30,		% of		June 30,		% of		March 31,		% of
Three months ended,		2015		Revenue		2014		Revenue		2015		Revenue
Revenue		81,808				171,937				222,717
Expenses
	Materials and operating	90,610		110.8	%	171,763		99.9	%	210,900		94.7	%
	General and administrative	3,934		4.8	%	8,213		4.8	%	4,033		1.8	%
	Total expenses	94,544		115.6	%	179,976		104.7	%	214,933		96.5	%
Operating income/(loss)*		(12,736	)	(15.6	%)	(8,039	)	(4.7	%)	7,784		3.5	%
Adjusted operating income/(loss)*		(11,808	)	(14.4	%)	(8,039	)	(4.7	%)	13,307		6.0	%

Number of jobs		1,914				3,628				3,611
Revenue per job		41,729				47,568				60,826

Gross loss*		(25,071	)	(30.6	%)	(15,620	)	(9.1	%)	(7,169	)	(3.2	%)


Sales Mix
Three months ended, (unaudited)	June 30,		June 30,		March 31,
	2015		2014		2015
% of Total Revenue
Fracturing	60	%	62	%	67	%
Cementing	13	%	19	%	17	%
Industrial services	10	%	4	%	3	%
Nitrogen	5	%	7	%	5	%
Coil Tubing	4	%	4	%	3	%
Acidizing	3	%	2	%	2	%
Other	5	%	2	%	3	%
Total	100	%	100	%	100	%

Operations Review

Revenue in the second quarter decreased by 52% on a year-over-year basis due to decreased demand and pricing for our pressure pumping service lines. Weak oil and gas prices continued to negatively impact our Canadian operations and led to a 50% year-over-year decrease in the number of active drilling rigs during the second quarter of 2015. Weak demand also led to substantial pricing declines as pricing levels fell by approximately 10% on a year-over-year basis. Canadian pricing levels are now down approximately 20% compared to peak levels seen at the end of 2014.

Despite a year-over-year revenue decrease of over $90 million, Canadian operating loss increased by only $4.7 million due largely to cost cutting initiatives realized during the quarter. The most significant component of our cost structure is product costs, which includes the purchase and transportation of key products such as sand, cement and chemicals. Canadian product costs have declined by 10-15% and we began to realize these savings during the second quarter of 2015. The impact of product cost reductions has been offset partially by a weakening Canadian dollar, as approximately one-third of our product costs are purchased in U.S. dollars. The Canadian dollar has weakened by approximately 7% relative to the U.S. dollar since the end of 2014.

In addition, we have responded to the substantial decrease in demand by downsizing our operations, which includes a reduction in active equipment and people. We have parked 35% of our Canadian pressure pumping equipment and reduced our Canadian employee base by approximately 40%. These downsizing measures led to significant cost savings during the second quarter of 2015.

Industrial services activity was strong in the second quarter of 2015 as revenue from this service line increased by 38% on a year-over-year basis. Industrial services demand is less dependent on commodity prices because it is based on production levels rather than drilling and completions activity.

Q2 2015 versus Q2 2014

Canadian revenue for the second quarter of 2015 decreased by 52% compared to the second quarter of 2014. Low commodity prices led to a significant decrease in demand for our services, which was reflected in the 47% year-over-year decline in the job count. Revenue per job decreased by 12%, due largely to a 10% year-over-year drop in overall Canadian pricing. An increase in industrial services revenue relative to total revenue also contributed to the decrease in revenue per job, as industrial services jobs are substantially smaller than fracturing jobs.

Materials and operating expenses increased to 110.8% of revenue compared to 99.9% for the same period in 2014. In addition, the gross loss for the second quarter of 2015 was 30.6% of revenue compared to 9.1% for the same period in 2014. The substantial decline in revenue led to reduced operating leverage on our fixed cost structure, which contributed to the decreases in operating and gross margins. A year-over-year pricing decline of 10% also negatively impacted operating and gross margins. Significant fixed and variable cost reductions partially offset the impact of lower revenue and pricing. Depreciation expense in Canada, which impacts gross profit/(loss), increased by $1.2 million on a year-over-year basis due to additional write-offs of capital spare parts during the second quarter of 2015. General and administrative costs were down by $4.3 million due primarily to lower share-based expenses and employee costs.

Q2 2015 versus Q1 2015

Canadian revenue in the second quarter decreased by 63% compared to the first quarter of 2015. The number of jobs decreased by 47% due to a substantial drop in sequential activity caused by spring break-up conditions and low commodity prices. Spring break-up occurs seasonally during the second quarter in Canada when frozen ground begins to thaw and road bans and weight restrictions limit oil and gas activity levels. In addition, revenue per job decreased by 31% due to a 10% sequential decline in pricing combined with a decrease in fracturing revenue relative to total revenue. Fracturing revenue per job is typically larger than all other service lines.

As a percentage of revenue, second quarter materials and operating expenses increased to 110.8% compared to 94.7% and the second quarter gross loss was 30.6% compared to 3.2% in the first quarter of 2015. Decreased activity levels led to lower operating leverage on our fixed cost structure and a decline in operating margins. Lower pricing also negatively impacted first quarter operating margins as pricing decreased sequentially by approximately 10%. There was no significant change in Canadian depreciation on a sequential basis. General and administrative costs were relatively unchanged on a sequential basis as a decrease in employee costs was offset by increased share unit expenses.

UNITED STATES OPERATIONS
($ thousands, except revenue per job, unaudited)
		June 30,		% of		June 30,		% of		March 31,		% of
Three months ended,		2015		Revenue		2014		Revenue		2015		Revenue
Revenue		79,393				267,564				201,423
Expenses
	Materials and operating	96,267		121.3	%	246,540		92.1	%	207,944		103.2	%
	General and administrative	7,766		9.8	%	9,071		3.4	%	7,193		3.6	%
	Total expenses	104,033		131.1	%	255,611		95.5	%	215,137		106.8	%
Operating income/(loss)*		(24,640	)	(31.1	%)	11,953		4.5	%	(13,714	)	(6.8	%)
Adjusted operating income/(loss)*		(22,739	)	(28.6	%)	11,953		4.5	%	(6,857	)	(3.4	%)

Number of jobs		1,558				3,002				2,287
Revenue per job		51,003				86,387				88,571

Gross loss*		(44,422	)	(56.0	%)	(2,058	)	(0.8	%)	(34,827	)	(17.3	%)


Sales Mix
Three months ended, (unaudited)	June 30,		June 30,		March 31,
	2015		2014		2015
% of Total Revenue
Fracturing	88	%	92	%	94	%
Cementing	6	%	6	%	4	%
Coil Tubing	6	%	2	%	2	%
Total	100	%	100	%	100	%

Operations Review

Weak commodity prices led to a substantial decrease in oilfield activity in the U.S. as the average number of active drilling rigs in the U.S. was down by 51% year-over-year in the second quarter of 2015. Low demand combined with excess pressure pumping supply led to disappointing financial results for our U.S. operations in the second quarter of 2015. In response to the low demand, only eight of our sixteen U.S. fracturing crews remained active during the quarter.

Several of our U.S. customers reduced or completely eliminated well completions activity early in the second quarter, which forced us to transition to new customers for several of our fracturing crews. During this transition period, which occurred in April and May, the utilization of our U.S. fracturing fleet was very low. We began to win new work in late May/early June and saw an improvement in utilization late in the quarter.

As expected, the largest activity declines occurred in the oil producing regions, including the Permian and Eagle Ford plays. Activity and revenue in the Marcellus held-up better than our other regions but was still negatively impacted by lower demand and pricing. Overall pricing levels for our U.S. operations decreased by 15% sequentially during the second quarter of 2015, and are now down 30% relative to peak pricing levels from the end of 2014.

Cost cutting remained a key area of focus for our U.S. operations during the second quarter. We continued to negotiate lower pricing from all of our product suppliers. The cost of key products has declined by 15-20% and the impact of these cost savings was partially realized during the second quarter of 2015. We expect to realize the full benefit of these savings during the third quarter of 2015. We have also reduced our U.S. employee base by 58% in response to the decrease in demand and active equipment. The impact of these cost cutting measures and others helped to offset the impact of reduced activity as second quarter operating income decreased by only $11 million compared to revenue decline of $122 million on a sequential basis.

Q2 2015 versus Q2 2014

U.S. revenue in the second quarter of 2015 was down 70% compared to the second quarter of 2014. The job count decreased by 48% due to a reduction in customer activity across all U.S. regions. The most significant reductions occurred in the oil producing regions including the Eagle Ford, Bakken and Permian plays. Revenue per job decreased by 41% due to a significant decline in pricing, a change in geographic sales mix, and a decrease in fracturing revenue relative to total revenue. The impact of these factors was partially offset by a stronger U.S. dollar relative to the Canadian dollar.

As a percentage of revenue, materials and operating expenses increased to 121.3% from 92.1% and the gross loss increased to 56.0% compared to 0.8%, on a year-over-year basis. Lower activity led to reduced operating leverage on our fixed cost structure, which contributed to the margin decline. Lower year-over-year pricing also negatively impacted margins. Depreciation for our U.S. operations, which impacted gross loss, increased by $3.8 million, due largely to the increase in the U.S. dollar relative to the Canadian dollar. General and administrative expenses decreased by $1.3 million as a reduction in share-unit and employee costs were partially offset by increased costs due to a stronger U.S. dollar.

Q2 2015 versus Q1 2015

On a sequential basis, U.S. revenue decreased by 61%. The job count decreased by 32% due to lower demand and activity across all U.S. regions. Revenue per job decreased by 42% due largely to a 15% price reduction, a decrease in fracturing revenue relative to total revenue and a change in geographic sales mix.

As a percentage of revenue, materials and operating expenses increased to 121.3% from 103.2% and the gross loss increased to 56.0% from 17.3%. Pricing declines and reduced operating leverage on our fixed structure contributed to the sequential decreases in margins. U.S. depreciation remained relatively unchanged on a sequential basis. Significant cost cutting initiatives implemented throughout the quarter helped to offset the impact of lower pricing and utilization. General and administrative expenses increased by $0.6 million due largely to an increase in share-unit and legal expenses offset partially by a sequential reduction in employee costs.

INTERNATIONAL OPERATIONS
($ thousands, except revenue per job, unaudited)
		June 30,	% of		June 30,	% of		March 31,	% of
Three months ended,		2015	Revenue		2014	Revenue		2015	Revenue
Revenue		69,401			95,098			51,979
Expenses
	Materials and operating	56,095	80.8	%	74,066	77.9	%	47,685	91.7	%
	General and administrative	3,256	4.7	%	5,469	5.8	%	2,916	5.6	%
	Total expenses	59,351	85.5	%	79,535	83.7	%	50,601	97.3	%
Operating income*		10,050	14.5	%	15,563	16.3	%	1,378	2.7	%

Number of jobs		1,045			1,225			946
Revenue per job		58,495			75,917			51,375

Gross profit*		9,225	13.3	%	14,025	14.7	%	482	0.9	%

* See the first page of this report for a description of operating income/(loss). Gross profit/(loss) has been presented in this table as it is the most directly comparable measure calculated in accordance with IFRS to operating income/(loss).


Sales Mix
Three months ended, (unaudited)	June 30,		June 30,		March 31,
	2015		2014		2015
% of Total Revenue
Fracturing	91	%	79	%	88	%
Coil Tubing	4	%	9	%	4	%
Cementing	2	%	6	%	4	%
Nitrogen	1	%	4	%	2	%
Other	2	%	2	%	2	%
Total	100	%	100	%	100	%

Operations Review

Our International operations include financial results for operations in Russia, Kazakhstan, Australia, Saudi Arabia, and Norway.

Our Russian operations comprise the majority of our international results and activity levels in Russia were strong during the second quarter of 2015 as our Russian customers remained committed to maintaining or increasing oil production levels. Demand for fracturing services was particularly strong due to a continued increase in horizontally drilled wells and fracturing stages per well.

Although the Russian ruble has declined by 34% relative to the Canadian dollar on a year-over-year basis, the ruble stabilized during the second quarter and increased sequentially by 15%. The fluctuations in the value of the ruble continued to have a minimal impact on Russian operating income as a percentage of revenue, as most of the second quarter expenses in Russia were denominated in rubles. However, some cost inflation was noted in Russia during the second quarter, which had a negative impact on Russian operating margins.

Operating conditions continued to be challenging in Kazakhstan, Saudi Arabia and Australia with all regions being negatively impacted by low commodity prices and weak customer activity. Operating and financial results for the Norwegian completion tools division were very strong during the second quarter. Our key customers in this region were active in the second quarter and we continued to see strong acceptance of our completions tools technology in the North Sea region.

Q2 2015 versus Q2 2014

International revenue in the second quarter of 2015 decreased by 27% compared to the second quarter of 2014. The devaluation of the Russian ruble had the largest impact on second quarter revenue as the ruble declined by 34% compared to the second quarter of 2014 relative to the Canadian dollar. Ruble devaluation contributed to the 23% drop in revenue per job and was partially offset by favorable changes to customer and job-type mix in Russia. The job count decreased by 15% due to lower activity in Kazakhstan and Australia, combined with shutting down operations in Colombia and Algeria. International revenue in the second quarter also benefitted from an 86% year-over-year increase in Norwegian completions tools revenue.

As a percentage of revenue, materials and operating expenses increased to 80.8% from 77.9% and gross profit decreased to 13.3% from 14.7% compared to the second quarter of 2014. International operating margins decreased due to second quarter cost inflation in Russia and weaker year-over-year margins in Kazakhstan. These factors were partially offset by improved margins in Norway. General and administrative costs decreased by $2.2 million due to lower share unit expenses combined with lower general and administrative costs in Russia due to the devaluation of the ruble.

Q2 2015 versus Q1 2015

International revenue increased by 34% sequentially. The job count increased by 10% due largely to higher sequential utilization and demand in Russia. Oilfield activity in Russia is generally lower during the first quarter due the extreme cold temperatures in January and February. Revenue per job increased by 14% due largely to a 15% sequential increase in the value of the ruble relative to the Canadian dollar, which favorably impacted revenue per job in Russia. Revenue in the second quarter of 2015 also benefitted from a 190% sequential increase in Norwegian completions tools revenue.

As a percentage of revenue, materials and operating expenses decreased to 80.8% from 91.7% and gross profit increased to 13.3% from 0.9% on a sequential basis. Sequential margin improvements in Russia and Norway due to higher revenue contributed to majority of the increase. General and administrative costs increased by $0.3 million due largely to 15% sequential increase in the value of the ruble relative to the Canadian dollar.

CORPORATE
($ thousands, unaudited)		June 30,		% of		June 30,		% of		March 31,		% of
Three months ended,		2015		Revenue		2014		Revenue		2015		Revenue
Expenses
	Materials and operating	4,300		1.9	%	5,683		1.1	%	6,385		1.3	%
	General and administrative	8,409		3.6	%	12,511		2.3	%	8,230		1.7	%
	Total expenses	12,709		5.5	%	18,194		3.4	%	14,615		3.0	%
Operating loss*		(12,709	)	(5.5	%)	(18,194	)	(3.4	%)	(14,615	)	(3.0	%)
Adjusted operating loss*		(12,709	)	(5.5	%)	(18,194	)	(3.4	%)	(12,942	)	(2.7	%)

Gross loss*		(5,363	)	(2.3	%)	(6,603	)	(1.2	%)	(7,389	)	(1.6	%)

Q2 2015 versus Q2 2014

Corporate share-unit costs in the second quarter were $3.4 million lower on a year-over-year basis. Excluding these costs, corporate expenses in the second quarter of 2015 were $2.1 million lower compared to the second quarter of 2014. The decrease is due to cost control measures initiated in late 2014, which included salary reductions and lay-offs.

Q2 2015 versus Q1 2015

Corporate share unit costs were $2.3 million higher during the second quarter of 2015 compared to the first quarter of 2015 due to the issuance of share unit awards combined with an increase in share price during the quarter. Excluding severance and professional charges incurred in the first quarter of 2015 and changes in share-unit costs, corporate expenses decreased sequentially by $2.6 million. The decrease is largely due to cost control measures initiated in late 2014, which included salary reductions and lay-offs.

OTHER EXPENSES AND INCOME

Finance costs for the second quarter of 2015 decreased by 10% compared to the same period in 2014. A reduction in average outstanding debt (which includes notes payable, finance lease obligations, and revolving credit facilities as disclosed in the interim financial statements) contributed the decrease in interest.

Depreciation and amortization expense increased by 5% compared to the same period last year. A lower depreciable asset base combined with a reduction in Canadian dollar depreciation on Russian ruble denominated assets was more than offset by an increase in Canadian dollar depreciation on U.S. dollar denominated assets.

Foreign exchange losses of $2.9 million have been recorded in the second quarter of 2015, compared to losses of $5.0 million for the same period in 2014. This change is largely due to the net impact of fluctuations in the U.S. dollar and the Russian ruble relative to the Canadian dollar. Other income of $2.0 million for the second quarter of 2015 relates to net gains on asset sales and interest income earned on cash balances.

COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS ($ thousands, unaudited)
										Quarter-
										Over-
				% of				% of		Quarter		%
Six months ended June 30,		2015		Revenue		2014		Revenue		Change		Change

Revenue		706,721		100	%	1,177,816		100.0	%	(471,095	)	(40	%)
Expenses
	Materials and operating	720,186		101.9	%	1,066,329		90.5	%	(346,143	)	(32	%)
	General and administrative	45,737		6.5	%	67,800		5.8	%	(22,063	)	(33	%)
Operating income/(loss)*		(59,202	)	(8.4	%)	43,687		3.7	%	(102,889	)	(236	%)
	Finance costs	18,685		2.6	%	19,763		1.7	%	(1,078	)	(5	%)
	Depreciation and amortization	103,756		14.7	%	101,887		8.7	%	1,869		2	%
	Foreign exchange (gain)/loss	(23,278	)	(3.3	%)	2,700		0.2	%	(25,978	)	(962	%)
	Other (income)/loss	(1,968	)	(0.3	%)	(3,963	)	(0.3	%)	1,995		(50	%)
Loss before income taxes and non-controlling interest		(156,397	)	(22.1	%)	(76,700	)	(6.5	%)	(79,697	)	(104	%)
Income tax expense/(recovery)		163,409		23.1	%	(24,038	)	(2.0	%)	187,447		780	%
Non-controlling interest		(940	)	(0.1	%)	(1,077	)	(0.1	%)	137		(13	%)
Net loss		(318,866	)	(45.1	%)	(51,585	)	(4.4	%)	(267,281	)	(518	%)

Adjusted operating income/(loss)*		(42,322	)	(6.0	%)	43,687		3.7	%	(86,009	)	(197	%)

Gross profit/(loss)*		(114,534	)	(16.2	%)	13,386		1.1	%	(127,920	)	(956	%)

* see first page of this report


CANADIAN OPERATIONS
($ thousands, except revenue per job, unaudited)		June 30,		% of		June 30,	% of		Period-Over-Period
Six months ended,		2015		Revenue		2014	Revenue		Change
Revenue		304,525				525,279			(42	%)
Expenses
	Materials and operating	301,510		99.0	%	455,043	86.6	%	(34	%)
	General and administrative	7,967		2.6	%	15,755	3.0	%	(49	%)
	Total expenses	309,477		101.6	%	470,798	89.6	%	(34	%)
Operating income/(loss)*		(4,952	)	(1.6	%)	54,481	10.4	%	(109	%)
Adjusted operating income/(loss)*		1,499		0.5	%	54,481	10.4	%	(97	%)

Number of jobs		5,525				10,024			(45	%)
Revenue per job		54,210				52,438			3	%

Gross profit/(loss)*		(32,240	)	(10.6	%)	36,702	7.0	%	(188	%)

* see first page of this report

Canadian revenue for the six months ended June 30, 2015, was 42% lower than the same period in 2014. Low commodity prices over the first half of 2015 has led to substantial declines in activity for the majority of our Canadian service lines. Average rig count in Canada has decreased 44% over the first half of 2015 compared to the first half of 2014, which compares to the 45% decline in our job count. Revenue per job increased by 3% due a favorable change in customer and job-type mix, which was partially offset by a 3% average price decline.

As a percentage of revenue, materials and operating expenses increased to 99.0% from 86.6% compared to the same period in 2014, which led to a decline in operating income. In addition, the gross loss was 10.6% compared to gross profit of 7.0% in 2014. Operating and gross margins declined due largely to the 42% decrease in revenue that led to lower operational leverage on our fixed structure. This decline was partially offset by cost control initiatives that were implemented throughout the first half of 2015.

UNITED STATES OPERATIONS
($ thousands, except revenue per job, unaudited)		June 30,		% of		June 30,		% of		Period-Over-Period
Six months ended,		2015		Revenue		2014		Revenue		Change
Revenue		280,816				478,604				(41	%)
Expenses
	Materials and operating	304,211		108.3	%	451,747		94.4	%	(33	%)
	General and administrative	14,959		5.3	%	15,939		3.3	%	(6	%)
	Total expenses	319,170		113.6	%	467,686		97.7	%	(32	%)
Operating income/(loss)*		(38,354	)	(13.6	%)	10,918		2.3	%	(451	%)
Adjusted operating income/(loss)*		(29,597	)	(10.5	%)	10,918		2.3	%	(371	%)

Number of jobs		3,845				6,220				(38	%)
Revenue per job		73,348				73,655				0	%

Gross loss*		(79,249	)	(28.2	%)	(21,812	)	(4.6	%)	(263	%)

* see first page of this report

U.S. revenue for the first six months of 2015 decreased by 41% compared to the first six months of 2014. The job count decreased by 38% due to lower activity across all U.S. regions as U.S. rig count was down 35% over the first six months of 2015 relative to 2014. Suspension of operations in the Bakken in March of 2015 also negatively impacted the job count. Revenue per job was relatively flat as increases caused by a stronger U.S. dollar were offset by pricing reductions.

As a percentage of revenue, materials and operating expenses increased to 108.3% from 94.4%. In addition, the gross loss increased to 28.2% compared to 4.6% of revenue. Lower pricing combined with decreased operating leverage on our fixed cost structure led to the decline in margins. These factors were partially offset by cost cutting initiatives implemented throughout the first half of 2015. General and administrative costs decreased by $1.0 million as cost reductions were partially offset by increased Canadian dollar costs caused by a stronger U.S. dollar.

INTERNATIONAL OPERATIONS
($ thousands, except revenue per job, unaudited)		June 30,	% of		June 30,	% of		Period-Over-Period
Six months ended,		2015	Revenue		2014	Revenue		Change
Revenue		121,380			173,933			(30	%)
Expenses
	Materials and operating	103,780	85.5	%	147,365	84.7	%	(30	%)
	General and administrative	6,172	5.1	%	10,725	6.2	%	(42	%)
	Total expenses	109,952	90.6	%	158,090	90.9	%	(30	%)
Operating income*		11,428	9.4	%	15,843	9.1	%	(28	%)

Number of jobs		1,991			2,191			(9	%)
Revenue per job		55,112			77,178			(29	%)

Gross profit*		9,707	8.0	%	12,585	7.2	%	(23	%)

* see first page of this report

International revenue decreased by 30% during the first half of 2015 compared to the same period in 2014. The devaluation of the Russian ruble had the largest impact on international revenue per job as the ruble declined by 46% relative to the Canadian dollar on a year-over-year basis. Decreased year-over-year activity in Kazakhstan and Australia and the closure of operations in Colombia and Algeria also negatively impacted the number of jobs completed in the first six months of 2015. These factors were partially offset by increased fracturing activity in Russia and an increase in Norwegian completions tools revenue.

Materials and operating expenses increased slightly to 85.5% of revenue compared to 84.7% of revenue in the same period of 2014. Weaker year-over-year margins in Kazakhstan and Australia were partially offset by substantial margin improvement in Norway and slight margin improvement in Russia. Closure costs in Algeria and Colombia also contributed to the decline in operating margins. General and administrative costs decreased by $4.6 million due largely to the devaluation of the ruble and lower costs in Colombia and Algeria due to the closure of these regions.

Gross profit increased to 8.0% of revenue compared to 7.2%. The primary difference between operating income and gross profit is depreciation expense, which decreased substantially for our International operations and led to the improvement in gross margins. The decrease in depreciation was due to the devaluation of the ruble combined with a decrease in depreciable asset base.

CORPORATE
($ thousands, unaudited)		June 30,		% of		June 30,		% of		Period-Over-Period
Six months ended,		2015		Revenue		2014		Revenue		Change
Expenses
	Materials and operating	10,685		1.5	%	12,174		1.0	%	(12	%)
	General and administrative	16,639		2.4	%	25,381		2.2	%	(34	%)
	Total expenses	27,324		3.9	%	37,555		3.2	%	(27	%)
Operating loss*		(27,324	)	(3.9	%)	(37,555	)	(3.2	%)	(27	%)
Adjusted operating loss*		(25,651	)	(3.6	%)	(37,555	)	(3.2	%)	(32	%)

Gross loss*		(12,752	)	(1.8	%)	(14,089	)	(1.2	%)	(9	%)

* see first page of this report

Corporate share-unit costs in the first half of 2015 were $6.1 million lower on a year-over-year basis. Excluding share-unit costs and severance and professional charges incurred in the first quarter of 2015, corporate expenses decreased by $5.8 million compared to the first half of 2014. The decrease is due to cost control measures initiated in late 2014, which included salary reductions and lay-offs.

OTHER EXPENSES AND INCOME

For the six months ended June 30, 2015, finance costs decreased by 5% compared to the same period in 2014 due to decreased debt balances. Depreciation and amortization increased by 2% compared to the same period last year as a stronger U.S. dollar led to higher Canadian dollar depreciation charges on U.S. assets. This was partially offset by a smaller depreciable asset base and less Canadian dollar depreciation in Russia caused by a weaker Russian ruble.

Foreign exchange gains of $23.3 million have been recorded for the six months ended June 30, 2015, compared to losses of $2.7 million for the same period in 2014. This change is due to the net impact of fluctuations in the U.S. dollar and the Russian ruble relative to the Canadian dollar. Other income for the first half of 2015 was $2.0 million compared to $4.0 million for the same period of 2014. Other income is largely comprised of gains on asset sales and interest income on cash balances.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds used in operations increased to $50.3 million during the second quarter of 2015 compared to $11.5 million for the same period in 2014. The decrease in operating cash flow was largely due to weak North American results caused by low commodity prices.

At June 30, 2015, Trican had working capital of $297.7 million compared to $601.2 million at the end of 2014. The decrease is largely due to declines in North American revenue, which has led to a significant decrease in trade accounts receivable, offset partially by a decrease in trade payables. Cash flow generated by the decrease in working capital was $194.4 million during the first half of 2015 and was a significant source of cash flow for the Company during this period.

Investing Activities

Subsequent to the end of the second quarter, Trican entered into a definitive agreement with RN Assets LLC, a subsidiary of Rosneft Oil Company, for the sale of Trican's Russian pressure pumping business for a purchase price of USD$140 million or approximately CAD$182 million, with customary working capital and net debt adjustments to be determined. Trican intends to apply the net proceeds from this sale to reduce its outstanding debt. Trican and the Purchaser have now entered into definitive agreements for the sale of the Russian business, and the purchaser has obtained approval of the Russia Federal Antimonopoly Service for the transaction. Closing of the transaction is scheduled for August 20, 2015, and is subject certain conditions precedent and to the preparation and delivery of customary closing documentation.

Capital expenditures for the first half of 2015 totaled $20.8 million, compared with $41.0 million for the same period in 2014. With the decline in commodity prices and North American demand, capital expenditures will be kept to a minimum until operating conditions improve. A substantial amount of equipment has been parked in both Canada and the U.S., which will reduce the amount of maintenance capital needed throughout the current downturn. In addition, capital expansion initiatives will not be considered during the current economic environment in order to preserve current liquidity levels. Based on existing capital budget commitments, we expect capital spending to be between $35 million and $45 million during 2015. Trican regularly reviews its capital equipment requirements and will continue to follow its policy of adjusting the capital budget on a quarterly basis to reflect changing operating conditions and capital equipment needs.

Financing Activities

Trican repaid $125.1 million of long-term debt during the first half of 2015 using primarily cash inflows from reductions in working capital. Trican is in compliance with all financial covenants as at June 30, 2015. Trican's financial covenants are as follows:

Revolving Credit Facilities:

Ratio of Consolidated Debt to Consolidated Capitalization must be no greater than 45%; the Company's ratio was 39.71% at June 30, 2015.
Ratio of 12 month trailing Consolidated EBITDA to 12 month trailing Consolidated Interest Expense ("interest coverage ratio") must be no less than 3:1; the Company's ratio was 4.74:1 at June 30, 2015.

Notes Payable:

Ratio of Consolidated Debt to Consolidated Capitalization must be no greater than 50%; the Company's ratio was 39.71% at June 30, 2015.
Ratio of 12 month trailing Consolidated EBITDA to 12 month trailing Consolidated Interest Expense ("interest coverage ratio") must be no less than 3:1; the Company's ratio was 4.74:1 at June 30, 2015.
Priority Debt at the end of any reporting period must be no greater than 20% of Consolidated Equity; the Company's had 0% Priority Debt at June 30, 2015.

Consolidated Debt includes all loans and borrowing, including capital leases, less cash and any hedge assets or liabilities.

Consolidated Capitalization is Consolidated Debt plus Total Shareholders' Equity per the statement of financial position.

Consolidated EBITDA is defined as net earnings or loss for the period less interest, taxes, depreciation and amortization, non-cash items including stock based compensation, non-controlling interest, and extraordinary gains and losses. Extraordinary gains and losses include asset write-downs and other non-recurring charges, such as severance.

Consolidated Interest Expense includes all interest expenses incurred on all debt arrangements including revolving credit facilities, notes payable, and lease obligations.

At June 30, 2015 Trican is in compliance with all financial covenants and cross-covenants on its extendible revolving credit facility and its senior unsecured notes. However, management has prepared forecasts for the remainder of 2015 and 2016 and forecasts a breach of its interest coverage ratio covenant beginning with the end of the third quarter of 2015 and continuing until the first quarter of 2016 due to current North American pressure pumping activity and pricing being at cyclical lows. If this covenant is not met, the Revolving Credit Facility and Senior Notes may become due on demand. This material uncertainty may cast significant doubt with respect to the ability of the Corporation to continue as a going concern.

Trican continues to negotiate covenant relief with its lenders and meaningful progress in the negotiations has been made to date. No agreements have been reached with the lenders as of the date of this report and there can be no assurance that such agreements will be reached. The closing of the sale of the Russian business is a positive step for the Company and we remain optimistic terms of covenant relief will be reached with the lenders.

During the first quarter of 2015, a dividend payment of $22.4 million was made to shareholders. Given the weak economic outlook and the need to preserve liquidity, Trican's Board of Directors suspended the dividend to shareholders during the second quarter of 2015. The Board of Directors will continue to re-evaluate the dividend policy on a quarterly basis.

As at August 13, 2015 Trican had 148,918,046 common shares and 7,391,581 employee stock options outstanding.

During the first quarter of 2015, Trican received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") that expires on March 12, 2016. During the first quarter of 2015, there were 187,674 common shares purchased through the NCIB utilizing an automatic share purchase plan, in an effort to offset the impact of exercised stock options during 2014.The cost of the common shares repurchased was funded by the proceeds of the exercised stock options during 2014. Trican has not repurchased any shares since the 2014 Year End Board meeting on February 25, 2015 and does not expect to repurchase any shares until financial results and cash flow meaningfully improve to a level that would support this type of expenditure.

OUTLOOK

Canada

Canadian industry activity has increased from the lows experienced in April and May; however, it still remains depressed relative to prior year activity levels. Approximately 35% of our equipment fleet is expected to remain parked over the remainder of 2015 and potentially into 2016 depending on oil and gas prices and industry activity levels. Management is of the opinion that we have appropriately sized the Canadian operations to the current work scope. Our customer base has remained loyal to us and market share gains with active customers are expected to result in good utilization of our active equipment fleet during the third quarter. Management believes that Canadian pricing bottomed during the second quarter; however, we do not expect any meaningful increase in pricing for the foreseeable future. Cost-optimization and sizing the business to current activity levels continues to be management's focus until oil and gas prices and industry activity levels meaningfully increase. Market share gains and significant cost reductions have made management cautiously optimistic that operating income margins will meaningfully increase and stabilize at a higher level during the third quarter. As the price of oil remains volatile, management will continue to be vigilant in monitoring customer activity levels and profitability and will continue to quickly adjust as operating conditions change.

United States

U.S. industry activity continues to be weak. The largest activity declines have occurred in the oil producing regions including the Permian, Eagle Ford and Bakken plays. Activity in the Marcellus continues to be higher than our other operating regions, but is still being impacted by lower demand and pricing. Activity levels and revenue are expected to increase over second quarter levels during the third quarter as a result of winning new contracts; however, the visibility of this work scope from our customers is very fluid. Pricing has been reduced by approximately 30% since the peak pricing levels experienced at the end of 2014. Management is of the opinion that pricing in the U.S. market will bottom during the third quarter with some marginal pricing weakness experienced relative to the second quarter.

Cost reductions and sizing the business to current activity levels continues to be management's primary focus. The leading edge price of key products has declined by 15-20% and we continue to expect to realize additional savings beyond the substantial savings realized during the first half of 2015. Headcount has been reduced by 58% and we continue to evaluate and implement further cost improvements and efficiencies in an effort to generate positive cash flow in our U.S. operations. Management is of the opinion that industry activity levels will not meaningfully increase in the near term given the recent pullback in oil prices. As such, continued vigilance on the U.S. operations cost structure, keeping utilization high and quickly reacting to changes in customer work flow are critical to the U.S. operations generating positive cash flow by the end of the third quarter.

International

The pending sale of the Russian pressure pumping business combined with the potential sale of Kazakhstan, weak operating conditions in Australia, and our very small start-up footprint in Saudi Arabia have resulted in Trican reducing its International operations. We are ceasing operations in Australia and suspending operations in Saudi Arabia. Our completion tool business in Norway remains our only International area and we are happy with the profitability and market share gains we have made in this region. While Trican will continue to focus on improving the profitability of our North American business during this downturn and strengthening it for an eventual turnaround once commodity prices rebound, we believe we have substantial international operating experience and will continue to evaluate international opportunities that provide meaningful scale as they materialize in an effort to increase utilization on our substantial equipment fleet.

NON-IFRS DISCLOSURE

Adjusted profit/(loss), adjusted operating income/(loss) and funds provided by/(used in) operations do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-IFRS measures.

Adjusted profit/(loss), adjusted operating income/(loss) and funds provided by/(used in) operations have been reconciled to profit/(loss) and operating income/(loss) has been reconciled to gross profit/(loss), being the most directly comparable measures calculated in accordance with IFRS. The reconciling items have been presented net of tax, where applicable.

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30, 2014
Adjusted net (loss)/income attributed to owners of the Company		($85,282	)	($36,183	)	($60,321	)	($145,603	)	($44,805	)
Deduct:
	Non-cash share-based compensation expense (net of non-controlling interest of nil)	1,294		1,929		1,525		2,819		4,080
	Foreign exchange (gain)/loss (net of non-controlling interest)	2,899		4,992		(26,155	)	(23,256	)	2,700
	Deferred tax asset derecognition	193,700		-		-		193,700		-

Loss for the period (IFRS financial measure) attributed to owners of the Company		($283,175	)	($43,104	)	($35,691	)	($318,866	)	($51,585	)

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30, 2014
Funds provided by/(used in) operations		($50,326	)	($11,532	)	($28,282	)	($78,608	)	$26,465
Charges to income not involving cash
	Depreciation and amortization	(51,402	)	(49,137	)	(52,354	)	(103,756	)	(101,887	)
	Amortization of debt issuance costs	(218	)	(216	)	(218	)	(436	)	(432	)
	Stock-based compensation	(1,294	)	(1,929	)	(1,525	)	(2,819	)	(4,080	)
	Gain/(loss) on disposal of property and equipment	1,209		480		(130	)	1,079		570
	Net finance costs	(8,237	)	(8,830	)	(9,674	)	(17,911	)	(18,646	)
	Unrealized foreign exchange gain/(loss)	(7,774	)	(6,609	)	26,799		19,025		(3,836	)
	Income tax recovery/(expense)	(182,647	)	17,470		19,238		(163,409	)	24,038
Adjust for interest and tax outflows/(inflows)
	Interest paid	13,140		14,103		5,084		18,224		19,762
	Income tax (refund)/paid	4,374		3,096		5,371		9,745		6,461

Loss for the period (IFRS financial measure) attributed to owners of the Company		($283,175	)	($43,104	)	($35,691	)	($318,866	)	($51,585	)

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30, 2014
Adjusted consolidated operating income/(loss)		($37,206	)	$1,283		($5,116	)	($42,322	)	$43,687
Deduct:
	Severance, base closure, and professional costs	2,829		-		14,051		16,880		-
Consolidated operating income/(loss)		($40,035	)	$1,283		($19,167	)	($59,202	)	$43,687
Add:
	Administrative expenses	25,806		37,597		22,618		48,424		71,586
Deduct:
	Depreciation expense	(51,402	)	(49,136	)	(52,354	)	(103,756	)	(101,887	)

Consolidated gross profit/(loss) (IFRS financial measure)		($65,631	)	($10,256	)	($48,903	)	($114,534	)	$13,386

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30, 2014
Adjusted Canadian operating income/(loss)		($11,808	)	($8,039	)	$13,307		$1,499		$54,481
Deduct:
	Severance costs	928		-		5,523		6,451		-
Canadian operating income		($12,736	)	($8,039	)	$7,784		($4,952	)	$54,481
Add:
	Administrative expenses	6,392		9,882		3,648		10,040		18,647
Deduct:
	Depreciation expense	(18,727	)	(17,463	)	(18,601	)	(37,328	)	(36,426	)

Canadian gross profit/(loss) (IFRS financial measure)		($25,071	)	($15,620	)	($7,169	)	($32,240	)	$36,702

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30. 2014
Adjusted U.S. operating income/(loss)		($22,739	)	$11,953		($6,858	)	($29,597	)	$10,918
Deduct:
	Severance and base closure costs	1,901		-		6,856		8,757		-
U.S. operating income/(loss)		($24,640	)	$11,953		($13,714	)	($38,354	)	$10,918
Add:
	Administrative expenses	7,675		9,605		7,676		15,351		16,767
Deduct:
	Depreciation expense	(27,457	)	(23,616	)	(28,789	)	(56,246	)	(49,497	)

U.S. Gross loss (IFRS financial measure)		($44,422	)	($2,058	)	($34,827	)	($79,249	)	($21,812	)

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30. 2014
International operating income		$10,050		$15,563		$1,378		$11,428		$15,843
Add:
	Administrative expenses	3,329		5,599		3,065		6,394		10,793
Deduct:
	Depreciation expense	(4,154	)	(7,137	)	(3,961	)	(8,115	)	(14,051	)

International gross profit (IFRS financial measure)		$9,225		$14,025		$482		$9,707		$12,585

(thousands; unaudited)		Three months ended						Six months ended
		June 30, 2015		June 30, 2014		March 31, 2015		June 30, 2015		June 30. 2014
Adjusted Corporate operating loss		($12,709	)	($18,194	)	($12,942	)	($25,651	)	($37,555	)
Deduct:
	Severance and professional costs	-		-		1,673		1,673		-
Corporate operating loss		($12,709	)	($18,194	)	($14,615	)	($27,324	)	($37,555	)
Add:
	Administrative expenses	8,410		12,511		8,229		16,639		25,379
Deduct:
	Depreciation expense	(1,064	)	(920	)	(1,003	)	(2,067	)	(1,913	)

Corporate gross loss (IFRS financial measure)		($5,363	)	($6,603	)	($7,389	)	($12,752	)	($14,089	)


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Stated in thousands; unaudited)		June 30, 2015		December 31, 2014
ASSETS
Current assets
	Cash and cash equivalents	$37,554		$82,423
	Trade and other receivables	268,846		627,749
	Current tax assets	18,331		837
	Inventory	238,823		245,358
	Prepaid expenses	33,485		32,647
		597,039		989,014
Property and equipment		1,255,300		1,286,754
Intangible assets		32,902		36,251
Deferred tax assets		762		162,411
Other assets		4,812		6,399
Goodwill		56,035		56,035
		$1,946,850		$2,536,864

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Trade and other payables	$164,305		$367,619
	Current tax liabilities	34		898
	Current portion of loans and borrowings (note 4)	135,027		19,335
		299,366		387,852

Loans and borrowings (note 4)		549,691		758,545
Deferred tax liabilities		104,076		104,240

Shareholders' equity
	Share capital (note 5)	570,337		571,050
	Contributed surplus	70,665		67,846
	Accumulated other comprehensive loss	(952	)	(26,462	)
	Retained earnings	354,199		672,846
Total equity attributable to equity holders of the Company		994,249		1,285,280
Non-controlling interest		(532	)	947
		$1,946,850		$2,536,864
See accompanying notes to the condensed consolidated interim financial statements.


CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			Three Months Ended June 30,				Six Months Ended June 30,

(Stated in thousands, except per share amounts; unaudited)			2015		2014		2015		2014


Revenue			$230,602		$534,599		$706,721		$1,177,816
Cost of sales (note 8)			296,233		544,855		821,255		1,164,430
Gross (loss) / profit			(65,631	)	(10,256	)	(114,534	)	13,386
Administrative expenses (note 8)			23,919		37,597		46,537		71,586
Other income			(1,675	)	(653	)	(1,194	)	(2,846	)
Results from operating activities			(89,762	)	(47,200	)	(161,764	)	(55,354	)
Finance income			(358	)	(706	)	(774	)	(1,117	)
Finance costs			8,595		9,536		18,685		19,763
Foreign exchange loss / (gain)			2,923		4,992		(23,278	)	2,700
Loss before income tax			(100,922	)	(61,022	)	(156,397	)	(76,700	)
Income tax expense / (recovery) (note 9)			182,647		(17,470	)	163,409		(24,038	)
Loss for the period			($283,569	)	($43,552	)	($319,806	)	($52,662	)

Other comprehensive (loss) / income

	Unrealized gain / (loss) on hedging instruments		6,737		(49	)	3,356		(1,583	)
	Foreign currency translation		(7,006	)	(8,023	)	22,128		(3,166	)
Total comprehensive loss for the period			($283,838	)	($51,624	)	($294,322	)	($57,411	)

Loss attributable to:
		Owners of the Company	(283,175	)	(43,104	)	(318,866	)	(51,585	)
		Non-controlling interest	(394	)	(448	)	(940	)	(1,077	)
Loss for the period			($283,569	)	($43,552	)	($319,806	)	($52,662	)

Total comprehensive loss attributable to:
Owners of the Company			(283,448	)	(51,176	)	(293,356	)	(56,334	)
Non-controlling interest			(390	)	(448	)	(966	)	(1,077	)
Total comprehensive loss for the period			($283,838	)	($51,624	)	($294,322	)	($57,411	)


Loss per share (note 6)
		Basic and diluted	($1.90	)	($0.29	)	($2.14	)	($0.35	)
	Weighted average shares outstanding - basic and diluted		148,918		149,129		148,936		149,029
See accompanying notes to the condensed consolidated interim financial statements.


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

			Three Months Ended June 30,				Six Months Ended June,
(Stated in thousands; unaudited)			2015		2014		2015		2014
Cash Provided By / (Used In):
Operations
	Loss for the period		($283,569	)	($43,552	)	($319,806	)	($52,662	)
	Charges to income not involving cash:
		Depreciation and amortization	51,402		49,136		103,756		101,887
		Amortization of debt issuance costs	218		216		436		432
		Stock-based compensation	1,294		1,929		2,819		4,080
		Gain on disposal of property and equipment	(1,209	)	(480	)	(1,079	)	(570	)
		Net finance costs	8,237		8,830		17,911		18,646
		Unrealized foreign exchange loss / (gain)	7,774		6,609		(19,025	)	3,836
		Income tax expense / (recovery)	182,647		(17,470	)	163,409		(24,038	)
	Change in inventories		8,152		(11,509	)	19,790		(17,572	)
	Change in trade and other receivables		122,734		119,281		368,555		(26,259	)
	Change in prepaid expenses		724		(4,072	)	(1,086	)	1,014
	Change in trade and other payables		(66,866	)	(29,364	)	(195,005	)	45,286
	Interest paid		(13,140	)	(14,103	)	(18,224	)	(19,762	)
	Income taxes paid		(4,374	)	(3,096	)	(9,745	)	(6,461	)
			14,024		62,355		114,878		27,857

Investing
	Proceeds from a loan to unrelated third-party		1,169		1,235		2,622		2,850
	Purchase of property and equipment		(13,680	)	(24,316	)	(20,751	)	(41,032	)
	Proceeds from the sale of property and equipment		2,687		506		3,828		1,096
	Payment of deferred consideration		-		-		-		(650	)
			(9,824	)	(22,575	)	(14,301	)	(37,736	)

Financing
	Net proceeds from issuance of share capital		-		9,024		-		9,272
	Repurchase and cancellation of shares under NCIB		-		-		(1,008	)	-
	Funds received from bank loans		-		4,151		-		15,255
	Funds (repaid)/drawn on revolving credit facility		(27,566	)	40,658		(125,082	)	133,107
	Repayment of long-term debt		-		(80,483	)	-		(80,483	)
	Dividend paid		-		-		(22,366	)	(22,338	)
			(27,566	)	(26,650	)	(148,456	)	54,813

Effect of exchange rate changes on cash			(143	)	(401	)	3,010		(668	)

Increase / (decrease) in cash and cash equivalents			(23,509	)	12,729		(44,869	)	44,266
Cash and cash equivalents, beginning of period			61,063		95,406		82,423		63,869
Cash and cash equivalents, end of period			$37,554		$108,135		$37,554		$108,135
See accompanying notes to the condensed consolidated interim financial statements.

SELECTED NOTES TO THE INTERIM FINANCIAL STATEMENTS

NOTE 4 - LOANS AND BORROWINGS

Long term debt

	June 30, 2015		December 31, 2014
Notes payable	$454,004		$426,897
Finance lease obligations	18,527		21,423
Revolving credit facilities	244,722		357,260
Hedge receivable	(24,944	)	(17,478	)
Total	692,309		788,102
Current portion of loans and borrowings	147,002		19,335
Current portion of hedge receivable	(11,975	)	-
Current portion of finance lease obligations ⁽¹⁾	7,591		10,222
Non-current	$549,691		$758,545

(1)	Current portion of finance lease obligations is included in trade and other payables.

Trican has a $575 million four-year extendible revolving credit facility ("Revolving Credit Facility") with a syndicate of banks which expires on October 18, 2018. The Revolving Credit Facility is unsecured and bears interest at the applicable Canadian prime rate, U.S. prime rate, Banker's Acceptance rate, or at LIBOR, plus 50 to 325 basis points, dependent on certain financial ratios of the Company.

The Revolving Credit Facility also has an Accordion feature which allows the total commitment to be increased by up to an additional $175 million, subject to the syndicate's approval.

The Revolving Credit Facility requires Trican to comply with certain financial and non-financial covenants that are typical for this type of arrangement. Trican's financial covenants on the Revolving Credit Facility as defined in the agreement are:

Ratio of Consolidated Debt to Consolidated Capitalization must be no greater than 45%; the Company's ratio was 39.71% at June 30, 2015.
Ratio of 12 month trailing Consolidated EBITDA to 12 month trailing Consolidated Interest Expense ("interest coverage ratio") must be no less than 3:1; the Company's ratio was 4.74:1 at June 30, 2015.

Trican was in compliance with these covenants at June 30, 2015.

Notes payable

As at June 30, 2015, Trican had the following Senior Unsecured Notes outstanding:

Senior Unsecured Notes	Amount	Date Issued	Maturity	Rate
Series C	CAD $45 million	April 28, 2011	April 28, 2016	5.22%
Series D	CAD $15 million	April 28, 2011	April 28, 2021	6.11%
Series E	USD $65 million	April 28, 2011	April 28, 2016	4.61%
Series F	USD $80 million	April 28, 2011	April 28, 2018	5.29%
Series G	USD $105 million	April 28, 2011	April 28, 2021	5.90%
Series A	USD $16.67 million	November 19, 2012	November 19, 2015	4.05%
Series A	USD $16.67 million	November 19, 2012	November 19, 2017	4.05%
Series A	USD $16.67 million	November 19, 2012	November 19, 2019	4.05%
Series H	CAD $ 20 million	September 3, 2014	September 03, 2024	5.75%

All Senior Unsecured Notes require the Company to comply with certain financial and non-financial covenants that are typical for this type of arrangement. Trican's financial covenants on the Notes payable are:

Ratio of Consolidated Debt to Consolidated Capitalization must be no greater than 50%; the Company's ratio was 39.71% at June 30, 2015.
Ratio of 12 month trailing Consolidated EBITDA to 12 month trailing Consolidated Interest Expense ("interest coverage ratio") must be no less than 3:1; the Company's ratio was 4.74:1 at June 30, 2015.
Priority Debts at the end of any reporting period must be no greater than 20% of Consolidated Equity; the Company's had 0% Priority Debt at June 30, 2015.

Trican was in compliance with these covenants at June 30, 2015.

NOTE 6 - LOSS PER SHARE

	For the three months ended, June 30,				For the six months ended June 30,
Basic loss per share	2015		2014		2015		2014
Loss attributable to common shareholders	($283,175	)	($43,104	)	($318,866	)	($51,585	)
Weighted average number of common shares	148,918,046		149,129,488		148,935,557		149,028,946
Basic and diluted loss per share	($1.90	)	($0.29	)	($2.14	)	($0.35	)

All of the outstanding options have been excluded from the diluted weighted-average number of common shares as the Company incurred a net loss in the three months, and six months ended June 30, 2015 and 2014.

NOTE 9 - INCOME TAXES

(Stated in thousands)
Three months ended June 30,	2015		2014
Current income tax (recovery)	($9,941	)	($4,596	)
Deferred income tax expense / (recovery)	192,588		(12,874	)
	$182,647		($17,470	)

(Stated in thousands)
Six months ended June 30,	2015		2014
Current income tax (recovery)	($8,595	)	($1,408	)
Deferred income tax expense / (recovery)	172,004		(22,630	)
	$163,409		($24,038	)

The net income tax provision differs from that expected by applying the combined federal and provincial income tax rate of 26.09% (2014 - 25.26%) to income before income taxes for the following reasons:

(Stated in thousands) Six months ended June 30,	2015		2014
Expected combined federal and provincial income tax	($40,804	)	($19,374	)
Change in recognized deductible temporary differences	160,685		-
Statutory and other rate differences	(14,670	)	(7,687	)
Non-deductible expenses	1,681		2,447
Changes to deferred income tax rates	4,465		-
Stock based compensation	739		1,026
Translation of foreign subsidiaries	(4,571	)	(16	)
Unrecognized current year losses	54,957		1,106
Adjustments related to prior years	1,883		(1,539	)
Recognition of previously unrecognized tax losses	(1,013	)	-
Other	57		(1	)
	$163,409		($24,038	)

During the second quarter of 2015, the Company derecognized deferred tax assets of $193.7 million related to its U.S. operations due to a combination of factors which include losses in recent prior periods, current period losses and near term challenging market conditions. The Company has $574.9 million of net deductible temporary difference at June 30, 2015, which include loss carry forwards of approximately $754.1 million that will expire between 2029 and 2035.

NOTE 12 - OPERATING SEGMENTS

The Company operates in Canada and the U.S. along with a number of international regions, which include Russia, Kazakhstan, Australia, Saudi Arabia, Colombia and Norway. Each geographic region has a General Manager who is responsible for the operation and strategy of his region's business. Personnel working within the particular geographic region report to the General Manager; the General Manager reports to the executive management team.

The Company provides a comprehensive array of specialized products, equipment, services and technology to customers through three operating divisions:

Canadian operations provide cementing, fracturing, coiled tubing, nitrogen, geological, acidizing, reservoir management, industrial cleaning and pipeline, and completion systems and downhole tool services, which are performed on new and existing oil and gas wells.
U.S. operations provide cementing, fracturing, coiled tubing, nitrogen, acidizing and completion systems and downhole tool services, which are performed on new and existing oil and gas wells.
International operations provide cementing, fracturing, coiled tubing, acidizing, nitrogen, and completion systems and downhole tool services, which are performed on new and existing oil and gas wells.

Information regarding the results of each geographic region is included below. Performance is measured based on revenue and gross profit as included in the internal management reports, which are reviewed by the Company's executive management team. Each region's gross profit is used to measure performance as management believes that such information is most relevant in evaluating regional results relative to other entities that operate within the industry. Transactions between the segments are recorded at fair value and have been eliminated upon consolidation.

	Canadian Operations		United States Operations		International Operations	Corporate		Total
Three months ended June 30, 2015
Revenue	$81,808		$79,393		$69,401	$-		$230,602
Gross profit/(loss)	(25,071	)	(44,422	)	9,225	(5,363	)	(65,631	)
Finance income	-		-		-	(358	)	(358	)
Finance costs	-		-		-	8,595		8,595
Tax expense/(recovery)	(8,421	)	189,234		1,834	-		182,647
Depreciation and amortization	18,727		27,457		4,154	1,064		51,402
Capital expenditures	$11,677		$1,214		$608	$181		$13,680
Three months ended June 30, 2014
Revenue	$171,937		$267,564		$95,098	$-		$534,599
Gross profit/(loss)	(15,620	)	(2,058	)	14,025	(6,603	)	(10,256	)
Finance income	-		-		-	(706	)	(706	)
Finance costs	-		-		-	9,536		9,536
Tax expense/(recovery)	(12,939	)	(6,331	)	1,800	-		(17,470	)
Depreciation and amortization	17,465		23,617		7,137	917		49,136
Capital expenditures	4,475		6,797		12,710	334		24,316


	Canadian Operations		United States Operations		International Operations	Corporate		Total
Six months ended June 30, 2015
Revenue	$304,525		$280,816		$121,380	$-		$706,721
Gross profit/(loss)	(32,240	)	(79,249	)	9,707	(12,752	)	(114,534	)
Finance income	-		-		-	(774	)	(774	)
Finance costs	-		-		-	18,685		18,685
Tax (recovery) / expense	(11,415	)	171,185		3,639	-		163,409
Depreciation and amortization	37,328		56,246		8,115	2,067		103,756
Capital expenditures	14,621		1,787		3,014	1,329		20,751
Six months ended June 30, 2014
Revenue	$525,279		$478,604		$173,933	$-		$1,177,816
Gross profit/(loss)	36,702		(21,812	)	12,585	(14,089	)	13,386
Finance income	-		-		-	(1,117	)	(1,117	)
Finance costs	-		-		-	19,763		19,763
Tax expense/(recovery)	(5,495	)	(19,425	)	882	-		(24,038	)
Depreciation and amortization	36,426		49,497		14,051	1,913		101,887
Capital expenditures	9,025		9,033		20,719	2,255		41,032


	Canadian Operations	United States Operations	International Operations	Corporate	Total
As at June 30, 2015
Assets	$799,301	$840,253	$252,609	$54,687	$1,946,850
Goodwill	41,809	-	14,226	-	56,035
Property and equipment	540,273	636,282	65,959	12,786	1,255,300
As at December 31, 2014
Assets	$1,004,817	$1,225,885	$246,188	$59,974	$2,536,864
Goodwill	41,809	-	14,226	-	56,035
Property and equipment	560,222	640,920	68,607	17,005	1,286,754

In the current quarter, the Company corrected the carrying amount of property and equipment at December 31, 2014 to account for a transfer of assets that took place in the fourth quarter of 2014. Equipment transferred out of the United States and International operations had carrying amounts of $75,204 and $5,348, respectively. This equipment was transferred to the Canadian operation with a total carrying amount of $80,552.

The Corporate division does not represent an operating segment and is included for informational purposes only. Corporate division expenses consist of salary expenses, stock-based compensation and office costs related to corporate employees, as well as public company costs.

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking information and financial outlook based on Trican's current expectations, estimates, projections and assumptions that were made by the Company in light of information available at the time the statement was made. Forward-looking information and financial outlook that address expectations or projections about the future, and other statements and information about the Company's strategy for growth, expected and future expenditures, costs, operating and financial results, future financing and capital activities are forward-looking statements. Some forward-looking information and financial outlook are identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. This forward-looking information and financial outlook speak only as of the date of this document and we do not undertake to publicly update this forward-looking information and financial outlook except in accordance with applicable securities laws. This forward-looking information and financial outlook include, among others:

the proposed sale of the Company's Russian pressure pumping business, including (i) the agreed purchase price, (ii) the use of net proceeds from such sale, (iii) the steps to completion thereof, including the satisfaction of conditions precedent, and (iv) timing of closing of the transaction;
the potential sale of the Company's Kazakhstan pressure pumping business, including (i) the potential for Trican to successfully negotiate and enter into a definitive agreement with respect thereto, (ii) the steps to completion of the sale, including expectations regarding required approvals, and (iii) the timing of closing of the transaction;
expectations regarding the Company's breach of the interest ratio covenant under its revolving credit facility and senior unsecured notes and timing thereof, the status of its negotiations with the Company's lenders and its ability to obtain covenant relief therefrom;
expectations regarding Trican's ability to adjust Trican's active equipment fleet and cost structure in the U.S. and Canada depending on activity and pricing levels;
expectations of good utilization of Trican's Canadian fleet during the third quarter due to a loyal customer base and market share gains;
expectations regarding Trican's capital spending being between $35 million and $45 million during 2015;
expectations that 35% of Trican's Canadian equipment fleet will remain parked over the remainder of 2015 and potentially into 2016 depending on oil and gas prices and industry activity levels;
expectation that Trican's operating income margins will meaningfully increase and stabilize at a higher level during the third quarter due to market share gains and significant cost reductions;
expectation that the recent further decline in oil prices will likely prolong the industry downturn for the foreseeable future;
expectation that Trican's activity levels and revenue in the U.S. will continue to slowly increase during the third quarter due to new contract wins;
expectation of an increase in the Company's activity levels and revenue in the U.S. at an uncertain pace;
expectation that the pricing in the U.S. market will bottom during the third quarter with some marginal pricing weakness experienced relative to the second quarter of 2015;
expectation for no meaningful increase in the Canadian pricing for the foreseeable future;
expectation that Trican will continue to realize additional savings beyond the substantial savings realized during the first half of 2015; and
expectation that the U.S. industry activity levels will not meaningfully increase in the near term given the recent pull back in oil prices.

Forward-looking information and financial outlook is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect. Trican's actual results may differ materially from those expressed or implied and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: Trican's ability to complete the sale of its Russian pressure pumping business substantially on the terms, and within the timeframe, described herein; Trican's ability to successfully negotiate and enter into an agreement for the sale of its Kazakhstan pressure pumping business and complete such sale, substantially on the terms and within the timeframe described herein; Trican's ability to continue its operations for the foreseeable future and to realize its assets and discharge its liabilities and commitments in the normal course of business; Trican being successful in negotiating an agreement regarding the terms of covenant relief with its lenders; industry activity levels, including its effect of reducing the Company's capital and maintenance expenditures; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services and pricing that can be obtained for those 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 Company operates; and the ability of the Company to successfully market its products and services.

Forward-looking information and financial outlook is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: failure to negotiate covenant relief with the Company's lenders; failure to complete the sale of the Company's Russian pressure pumping business on the terms described herein, or at all; failure to complete the sale of the Company's Kazakhstan pressure pumping business on the terms described herein, or at all; fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; competitive and business conditions in the markets where the Company operates; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining and defending issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. The foregoing important factors are not exhaustive. In addition, actual results could differ materially from those anticipated in forward-looking information provided herein as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 25, 2015. Readers are also referred to the risk factors and assumptions described in other documents filed by the Company from time to time with securities regulatory authorities.

Trican undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward looking information.

Additional information regarding Trican including Trican's most recent annual information form is available under Trican's profile on SEDAR (www.sedar.com).

Contact Information:

Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266 - 0202
(403) 237 - 7716 (FAX)
ddusterhoft@trican.ca

Trican Well Service Ltd.
Michael Baldwin
Senior Vice President, Finance & CFO
(403) 266 - 0202
(403) 237 - 7716 (FAX)
mbaldwin@trican.ca

Trican Well Service Ltd.
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
www.tricanwellservice.com