Trican Well Service saw steep decline in demand for pressure pumping services in late 2014
Trican Well Service Ltd. (TSX:TCW) has reversed last year’s fourth-quarter loss to post a net profit of $4.9 or three cents per share for the three months ended Dec. 31.
In the year-earlier period, the Calgary-based oilfield services company with operations in North America and abroad posted a loss of $20.8 million or 14 cents per share.
Revenue in the latest period was $755.4 million, a 37 per cent increase from $552.1 million in the 2013 quarter.
Trican Well Service Canadian operations generated quarterly revenue of $342.9 million compared with $286.9 million in the year-earlier period as strong activity levels throughout the Western Canadian Sedimentary Basin combined with an increase in fracturing intensity and demand per well, the company said in its earnings release issued Wednesday after markets closed.
Despite the strong quarterly results, Trican Well Service noted that activity declined substantially near the end of the fourth quarter with rig count falling approximately 50 per cent over the last two weeks of December.
“Although a decline was expected, the extent of the slowdown exceeded expectations as we began to see the impact of lower oil prices on pressure pumping activity,” it said.
Trican Well Service U.S. operations generated revenue of $340.7 million, an increase of 96 per cent compared with the fourth quarter of 2013 as a result of operational improvements and an increase in fracturing demand.
International operations saw quarterly revenue decline to $71.8 million from $91.8 million as a 36 per cent devaluation in the Russian ruble relative to the Canadian dollar had a significant impact on the fourth-quarter financial results, it said.
For the full year, Trican Well Service had a net loss of $5 million or three cents per share on revenue of $2.7 billion, versus a net loss of $45.9 million or 31 cents per share on revenue of $2.11 billion in 2013.
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