EDMONTON, Alberta, Aug. 28, 2017 (GLOBE NEWSWIRE) -- John Babic, President and CEO of Dalmac Energy Inc. (“Dalmac”) (TSX-V:DAL) is pleased to announce fourth quarter and annual financial results for the fiscal year ended April 30, 2017.
|(000’s Cdn Dollars, except per share data)||Q4'17||Q4'16||%||YTD '17||YTD '16||%|
|Gross Margin %||30||%||21||%||44||%||27||%||23||%||19||%|
|Earnings (loss) before income tax||(74||)||(907||)||92||%||(2,131||)||(3,526||)||40||%|
|Net earnings (loss)||(224||)||(778||)||71||%||(1,776||)||(2,675||)||34||%|
|Earnings (loss) per share - basic||(0.01||)||(0.03||)||76||%||(0.06||)||(0.11||)||45||%|
|Earnings (loss) per share - diluted||(0.01||)||(0.03||)||76||%||(0.06||)||(0.11||)||45||%|
- The fall and winter season of 2016-2017 showed significant improvement over the previous year. Activity beginning in October through March showed higher utilization, a broader mix of customers and services being delivered. Mid November – mid January witnessed a skilled labour crunch due to the industry labour displacement over the past 2 years. The drilling industry couldn’t crew up in time – which created a lull in activity during this interval. Peak periods in the months of October, November, February and March saw all our available manpower deployed. We continue to add quality staff in small numbers as our workload permits. Rates, particularly in the Fox Creek area, began to rise slightly in the winter months as demand outstripped supply temporarily in February and March. Q4’17 revenue increased by 24% to $5.5M while the gross margin increased by 44% on the quarter. The year to date revenues are down 18% from the previous year while the overall YTD EBITDAS increased by 56%.
- YTD revenue decreased by 18% to $18M, however EBITDAS increased by 56% to $2.4M. The increase was primarily driven by improvement in operational efficiencies within a lower the normal priced operating environment
In August of 2017 Dalmac has executed commitment on a financing facility from a major Canadian bank for a 3-year committed revolving credit facility for $12M plus an uncommitted accordion agreement of an additional $5M, for a total loan maximum of $17M. and we anticipate having the new facility in place on or before the end of September 2017.
During the first half of calendar year 2017, the average West Texas Intermediate price of oil was 6% higher than the prior year while the average Henry Hub natural gas price was 39% higher. In general, lower oil prices caused producers to significantly reduce their drilling budgets during the years of 2015 and 2016, which in turn decreased the demand for oilfield services, thus resulting in downward pricing pressure on rates which significantly depressed industry activity levels. With the support of improving commodity prices, we have been able to increase pricing across the majority our operations in during Q4’17 and Q1’18. Further pricing increases will be dependent on customer capital spending plans and the resulting demand for, drilling, fracing and completion activities which are directly tied to commodity prices.
Our activity through spring breakup and summer season remains relatively high, especially with more drilling, completions, production, construction and maintenance activity coming on stream in the foothills deep basin and Fox Creek areas. Dalmac robust safety programs and superior service allow us to price at the top of the market as we start to see shortages of equipment at peak times of the year. A reduction of competitors offering desperation pricing has been felt noticeably. With the increasing number of active rigs, and a backlog of maintenance programs, the industry will likely start to see a shortage of personnel to respond fully. This will continue at a more pronounced level this year, which should be supportive of rates, particularly this fall. We should expect to see our gross margin and EBITA continuing to increase as we enjoy the benefits of our compressed cost structure and an expanding demand.
Statements throughout this report that are not historical facts may be considered ‘forward looking statements’. Such statements are based on current expectations that involve risks and uncertainties, which could cause actual results to differ from those anticipated. Important factors that can cause anticipated outcomes to differ materially from actual outcomes include the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of petroleum prices, the ability to attract and retain qualified personnel, changes in laws or regulation, currency fluctuations, continued ability to access capital from available facilities and environmental risks. References to “Dalmac’, the “Corporation”, “Company”, “us”, “we”, and “our” mean Dalamc Energy Inc. and its subsidiary Dalmac Oilfield Services Inc. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. We seek safe harbor.
For more information contact: John Babic - CEO - Dalmac Energy Tel: 780-988-8510 Email: email@example.com