HIGH Arctic Energy Services Inc generated revenue of US$46.6 million (K154.4 million) in the second quarter of this year, a decrease of US$0.5 million (K1.6 million) lower than the comparable second quarter of last year.
Chief executive officer Cameron Bailey said in a statement that to date, revenue was US$93.1 million (K308.5 million) compared to US$100.8 million (K334.02 million) last year, an eight per cent decrease year on year.
“These results were driven by low customer demand in Canada carried over from 2018 and the Q4 2018 take or pay contract expiry for Rig 116.”
He said Canadian well servicing demonstrated strong performance with both operating hours and revenue per hour being marginally above the same period last year. This increase was offset with non-recurring expenses associated with absorbing the snubbing acquisition and start-up costs for two additional units deployed to the US.
The corporation’s strategic priorities remain targeted on:
- Regional work force development to strengthen safety, expertise, work standards and local communities;
- a strong capital structure to provide liquidity and strength throughout the energy services economic cycles;
- specialty niche operations with noteworthy barriers to entry;
- deep value opportunities to consolidate existing markets and diversify into new regions;
- solidifying customer relationships to gain market share and expand when industry conditions permit; and,
- Disciplined capital allocation to deliver shareholder value consistent with past performances.
Execution on these strategic priorities led to the following noteworthy developments during the first half of 2019:
- Safety excellence, no recordable incidents, and further delivery on training and education initiatives;
- preservation of a strong capital structure characterised by no long-term debt;
- high performing operating capabilities in pressure control snubbing and deep heli-portable drilling;
- further consolidation of the pressure control snubbing business in Canada; and,
- Further diversification of revenue with snubbing and well servicing expansion to the US.