High Arctic sets budget

Business, Normal

The National, Monday February 10th, 2014

 HIGH Arctic’s board of directors has approved a capital budget of US$19 million (K46 million) for this year to address maintenance and incremental growth opportunities. 

High Artic is a provider of specialised oilfield equipment and services, including drilling, completion and work over related services. 

Based in Alberta, the company has domestic operations throughout western Canada and international operations in PNG. 

Chief executive Dennis Sykora (pictured) said: “Our ongoing investments in PNG support our position as a preeminent service provider in the country, and our continuous maintenance and enhancement programme in Canada ensures that we are well positioned to service the growing LNG focused activity. 

“We continue to evaluate other growth opportunities and the conservative initial budget provides flexibility to increase our capital spending as opportunities materialise.” 

The board has determined that as the company now has more consistent cash flows, it is no longer necessary to provide early earnings estimates, and it will release its 2013 fourth quarter and full year end results in March. 

According to the company, this budget includes growth capital expenditures of US$13 million (K31.47 million) and maintenance capital expenditures of US$6 million (K14.52 millioon).

The US$19 million includes US$2.5 million (K6 million) of capital expenditures that were committed during fiscal 2013 but which had not yet been completed at year-end and are carried forward into 2014.

The budgeted expenditures are anticipated to be funded from the 2014 operating cash flow and cash on hand.