Total Energy Services Inc. (“Total Energy” or the “Company”)
(TSX:TOT) announces its consolidated financial results for the
three months ended March 31, 2022.
Financial Highlights ($000’s
except per share data)
|
|
Three months ended March 31 |
|
|
|
2022 |
|
2021 |
Change |
Revenue |
|
$ |
161,452 |
$ |
93,190 |
73% |
Operating income (loss) |
|
|
3,690 |
|
(5,419) |
nm |
EBITDA (1) |
|
|
24,314 |
|
16,717 |
45% |
Cashflow |
|
|
22,551 |
|
15,332 |
47% |
Net income (loss) |
|
|
2,467 |
|
(3,607) |
nm |
Attributable to shareholders |
|
|
2,472 |
|
(3,579) |
nm |
|
|
|
|
|
|
|
Per Share Data (Diluted) |
|
|
|
|
|
|
EBITDA (1) |
|
$ |
0.56 |
$ |
0.37 |
51% |
Cashflow |
|
$ |
0.52 |
$ |
0.34 |
53% |
|
|
|
|
|
|
|
Attributable to
shareholders: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
0.06 |
$ |
(0.08) |
nm |
|
|
|
|
|
|
|
Common shares
(000’s)(4) |
|
|
|
|
|
|
Basic |
|
|
42,713 |
|
45,072 |
(5%) |
Diluted |
|
|
43,423 |
|
45,231 |
(4%) |
|
|
|
|
|
|
|
|
|
|
March 31 |
|
December 31 |
|
Financial Position at |
|
|
2022 |
|
2021 |
Change |
Total Assets |
|
$ |
847,022 |
$ |
813,522 |
4% |
Long-Term Debt and
Lease Liabilities (excluding current portion) |
174,970 |
|
196,007 |
(11%) |
Working Capital (2) |
|
|
126,489 |
|
137,304 |
(8%) |
Net Debt (3) |
|
|
48,481 |
|
58,703 |
(17%) |
Shareholders’ Equity |
|
|
492,693 |
|
493,437 |
- |
|
|
|
|
|
|
|
Notes 1 through 4 please refer to the Notes to
the Financial Highlights set forth at the end of this release.
“nm” – calculation not meaningful
Total Energy’s results for the three months
ended March 31, 2022 reflect improved industry conditions in North
America and Australia as compared to the first quarter of 2021. The
Company did not receive any COVID-19 relief funds during the
quarter as compared to $5.9 million received in the first quarter
of 2021.
Contract Drilling Services
(“CDS”)
|
|
Three months ended March 31 |
|
|
2022 |
|
2021 |
Change |
Revenue |
$ |
60,062 |
$ |
28,571 |
110% |
EBITDA (1) |
$ |
11,441 |
$ |
6,268 |
83% |
EBITDA (1) as a % of
revenue |
|
19% |
|
22% |
(14%) |
Operating days(2) |
|
2,683 |
|
1,538 |
74% |
Canada |
|
1,625 |
|
1,084 |
50% |
United States |
|
701 |
|
301 |
133% |
Australia |
|
357 |
|
153 |
133% |
Revenue per operating day(2),
dollars |
$ |
22,386 |
$ |
18,577 |
21% |
Canada |
|
20,343 |
|
16,461 |
24% |
United States |
|
21,839 |
|
18,588 |
17% |
Australia |
|
32,759 |
|
33,542 |
(2%) |
Utilization |
|
31% |
|
17% |
82% |
Canada |
|
23% |
|
15% |
53% |
United States |
|
60% |
|
26% |
131% |
Australia |
|
79% |
|
34% |
132% |
Rigs, average for period |
|
95 |
|
98 |
(3%) |
Canada |
|
77 |
|
80 |
(4%) |
United States |
|
13 |
|
13 |
- |
Australia |
|
5 |
|
5 |
- |
(1) See Note 1 of the Notes to the
Financial Highlights set forth at the end of this
release.(2) Operating days includes drilling and paid
stand-by days.
First quarter 2022 drilling activity in North
America and Australia continued to increase with rising oil and
natural gas prices. Continued recovery of Canadian industry
activity levels from the historic lows of 2020 and market share
gains in the United States drove a significant year over year
increase in North American operating days and increased revenue per
operating day. In Australia, activity and results
improved in the first quarter of 2022 compared to the first quarter
of 2021 as two drilling rigs returned to service following the
completion of recertifications and upgrades. The first quarter
EBITDA margin was slightly lower on a year over year basis due to
pricing gains not fully offsetting the absence of COVID-19 relief
funds and operating cost inflation.
Rentals and Transportation Services
(“RTS”)
|
|
Three months ended March 31 |
|
|
2022 |
|
2021 |
Change |
Revenue |
$ |
15,400 |
$ |
7,735 |
99% |
EBITDA (1) |
$ |
5,593 |
$ |
1,966 |
184% |
EBITDA (1) as a % of
revenue |
|
36% |
|
25% |
44% |
Revenue per utilized piece of
equipment, dollars |
$ |
9,627 |
$ |
8,070 |
19% |
Pieces of rental
equipment |
|
9,400 |
|
10,650 |
(12%) |
Canada |
|
8,520 |
|
9,690 |
(12%) |
United States |
|
880 |
|
960 |
(8%) |
Rental equipment
utilization |
|
17% |
|
9% |
89% |
Canada |
|
12% |
|
8% |
50% |
United States |
|
30% |
|
13% |
131% |
Heavy trucks |
|
71 |
|
87 |
(18%) |
Canada |
|
48 |
|
62 |
(23%) |
United States |
|
23 |
|
25 |
(8%) |
(1) See Note 1 of the Notes to the Financial
Highlights set forth at the end of this release.
First quarter revenue in the RTS segment
increased as compared to the same period in 2021 due to higher
equipment utilization and improved pricing in Canada and the United
States. Increased equipment utilization as well as higher revenue
per utilized piece of equipment contributed to the year over year
increase in first quarter EBITDA and EBITDA margin. The RTS segment
has significant leverage to equipment utilization due to its
relatively fixed cost structure. Such leverage was demonstrated in
the first quarter of 2022 with a disproportionate increase in
EBITDA relative to revenue, which was sufficient to offset the
absence of COVID-19 relief assistance and significant operating
cost inflation.
Compression and Process Services
(“CPS”)
|
|
Three months ended March 31 |
|
|
2022 |
|
2021 |
Change |
Revenue |
$ |
58,565 |
$ |
34,156 |
71% |
EBITDA (1) |
$ |
3,258 |
$ |
3,575 |
(9%) |
EBITDA (1) as a % of revenue |
|
6% |
|
10% |
(40%) |
Horsepower of equipment on rent at period end |
|
29,670 |
|
22,900 |
30% |
Canada |
|
12,825 |
|
9,900 |
30% |
United States |
|
16,845 |
|
13,000 |
30% |
Rental equipment utilization during the period (HP)(2) |
|
52% |
|
43% |
21% |
Canada |
|
37% |
|
31% |
19% |
United States |
|
74% |
|
62% |
19% |
Sales backlog at period end, $ million |
$ |
180.7 |
$ |
47.7 |
279% |
(1) See Note 1 of the Notes to the Financial
Highlights set forth at the end of this release.(2) Rental
equipment utilization is measured on a horsepower basis.
The year over year increase in the CPS segment’s
first quarter revenue was due primarily to higher fabrication sales
and increased equipment overhaul activity. Compression rental fleet
utilization also continued to recover during the first quarter of
2022. The absence of COVID-19 relief assistance, costs incurred to
prepare for substantially higher fabrication activity levels and
general operating cost inflation contributed to lower first quarter
EBITDA and EBITDA margin in 2022 as compared to 2021. Exacerbating
the pressure on margins was the completion of fixed price
fabrication orders during the first quarter of 2022 that were
received in mid-2021. The fabrication sales backlog continued to
grow during the first quarter of 2022, increasing by another $33.2
million, or 23%, compared to the $147.5 million backlog at December
31, 2021.
Well Servicing (“WS”)
|
|
Three months ended March 31 |
|
|
2022 |
|
2021 |
Change |
Revenue |
$ |
27,425 |
$ |
22,728 |
21% |
EBITDA (1) |
$ |
6,548 |
$ |
5,152 |
27% |
EBITDA (1) as a % of
revenue |
|
24% |
|
23% |
4% |
Service hours(2) |
|
30,839 |
|
28,934 |
7% |
Canada |
|
16,449 |
|
17,123 |
(4%) |
United States |
|
4,155 |
|
2,611 |
59% |
Australia |
|
10,235 |
|
9,200 |
11% |
Revenue per service hour(2),
dollars |
$ |
889 |
$ |
786 |
13% |
Canada |
|
828 |
|
646 |
28% |
United States |
|
818 |
|
689 |
19% |
Australia |
|
1,017 |
|
1,072 |
(5%) |
Utilization(3) |
|
34% |
|
31% |
10% |
Canada |
|
32% |
|
33% |
(3%) |
United States |
|
42% |
|
21% |
100% |
Australia |
|
39% |
|
35% |
11% |
Rigs, average for period |
|
80 |
|
83 |
(4%) |
Canada |
|
57 |
|
57 |
- |
United States |
|
11 |
|
14 |
(21%) |
Australia |
|
12 |
|
12 |
- |
(1) See Note 1 of the Notes to the Financial
Highlights set forth at the end of this release.(2) Service
hours is defined as well servicing hours of service provided to
customers and includes paid rig move and standby.(3) The Company
reports its service rig utilization for its operational service
rigs in North America based on service hours of 3,650 per rig per
year to reflect standard 10 hour operations per day. Utilization
for the Company’s service rigs in Australia is calculated based on
service hours of 8,760 per rig per year to reflect standard 24 hour
operations.
First quarter WS segment revenue and EBITDA
increased in 2022 as compared to 2021 due primarily to higher
activity levels in the United States and Australia and increased
North American pricing. Canadian well servicing activity was
slightly lower than prior year due to the earlier arrival of spring
break up. Increased oil production activity and significant well
abandonment activity in Canada continued to underpin North American
well service activity. Despite the absence of COVID-19
relief funds and operating cost inflation, the WS segment’s EBITDA
margin improved modestly for the first quarter of 2022 compared to
2021 as a result of higher pricing and utilization.
Corporate
During the first quarter of 2022, Total Energy
remained focused on the safe and efficient operation of its
business, improving the financial performance of all business
segments and the prudent deployment of capital. $11.6 million of
capital expenditures were made during the first quarter, which
included $2.0 million of carry-over from 2021. Partially funding
these capital expenditures was $3.0 million of proceeds from the
sale of property, plant and equipment that realized a $1.5 million
gain on sale.
During the first three months of 2022 bank debt
was further reduced by $20.7 million, or 11%, and 530,000 common
shares were repurchased under the Company’s normal course issuer
bid at an average price of $6.66 (including
commissions). The Company exited the first quarter of
2022 with $126.5 million of positive working capital, including
$44.2 million of cash, and $115 million of available credit under
its $225 million of revolving bank credit facilities.
The weighted average interest rate on the Company’s outstanding
debt at March 31, 2022 was 2.79%.
Outlook
Total Energy’s diversified business platform,
efficient cost structure and disciplined deployment of capital
allowed the Company to generate significant free cash flow since
the outbreak of the global COVID-19 pandemic in the first quarter
of 2020. To date, such free cash flow has been primarily directed
towards enhancing shareholder returns through debt repayment and
share buybacks. From the beginning of 2020 to March 31, 2022, Total
Energy has repaid $108.0 million of bank debt and made $14.0
million of share repurchases under its normal course issuer bid. In
April of 2022 an additional $10.0 million of bank debt was
voluntarily repaid.
Total Energy’s diversification provides the
Company with significant leverage to recovering global energy
industry activity levels, as evidenced by the realization of its
third consecutive profitable quarter during the first quarter of
2022. With continued strength in commodity prices,
current indications are that industry conditions will continue to
improve for the remainder of 2022.
In direct response to increased customer demand,
the Company’s Board of Directors has approved a $16.0 million
increase to Total Energy’s 2022 capital expenditure budget to $42.1
million. $13.0 million of this increase is being directed towards
equipment recertifications and upgrades and the purchase of new
drill pipe, with the remaining $3.0 million earmarked for additions
to the compression rental fleet. Total Energy plans to fund the
remaining $30.5 million of its 2022 capital expenditure budget with
cash on hand and cashflow.
Dividend Reinstatement
Total Energy’s Board of Directors has determined
to reinstate a quarterly dividend to shareholders and has declared
a dividend of $0.06 per common share for the quarter ended June 30,
2022 on Total Energy’s outstanding common shares. The dividend is
payable on July 15, 2022 to shareholders of record at the close of
business on June 30, 2022. The ex-dividend date is June 29, 2022.
Unless otherwise indicated, all dividends declared by the Company
are “eligible dividends” within the meaning of subsection 89(1) of
the Income Tax Act (Canada).
Annual Meeting of
Shareholders
Shareholders are reminded that Total Energy’s
annual meeting of Shareholders will take place on Tuesday, May 17,
2022 at 10:00 am (Mountain Time) at the Calgary Petroleum Club. In
the event that any changes to the meeting are required due to
COVID-19 public health orders or otherwise, the Company will
provide updated meeting information by way of news release, which
will also be made available on SEDAR at www.sedar.com and on Total
Energy’s website at www.totalenergy.ca.
Mr. Bruce Pachkowski, a founding director and
current Chair of the Board, will be retiring from Total Energy’s
Board of Directors effective at the end of his current term,
following the Company’s upcoming annual meeting of Shareholders.
Mr. Pachkowski has served as a director for 25 years and has
contributed significantly to Total Energy’s growth and success
since its incorporation in November of 1996. On behalf of all
shareholders of Total Energy, the Board of Directors extends its
gratitude to Mr. Pachkowski and wishes him and his family the very
best in retirement.
Conference Call
At 9:00 a.m. (Mountain Time) on May 12, 2022
Total Energy will conduct a conference call and webcast to discuss
its first quarter financial results. Daniel Halyk, President &
Chief Executive Officer, will host the conference call. A live
webcast of the conference call will be accessible on Total Energy’s
website at www.totalenergy.ca by selecting “Webcasts”. Persons
wishing to participate in the conference call may do so by calling
(800) 319-4610 or (416) 915-3239. Those who are unable to listen to
the call live may listen to a recording of it on Total Energy’s
website. A recording of the conference call will also be available
until June 12, 2022 by dialing (855) 669-9658 (passcode 8790).
Selected Financial
Information
Selected financial information relating to the
three months ended March 31, 2022 and 2021 is included in this news
release. This information should be read in conjunction with the
condensed interim consolidated financial statements of Total Energy
and the notes thereto as well as management’s discussion and
analysis to be issued in due course and in the Company’s 2021
Annual report.
Consolidated Statements of Financial
Position(in thousands of Canadian dollars)
|
|
|
March 31 |
|
December 31 |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
(unaudited) |
|
(audited) |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
44,161 |
|
|
$ |
33,365 |
|
Accounts receivable |
|
|
|
116,000 |
|
|
|
90,543 |
|
Inventory |
|
|
|
96,447 |
|
|
|
89,921 |
|
Prepaid expenses and deposits |
|
|
|
9,241 |
|
|
|
9,208 |
|
Income taxes receivable |
|
|
|
2,897 |
|
|
|
2,208 |
|
Current portion of lease asset |
|
|
|
489 |
|
|
|
487 |
|
|
|
|
|
269,235 |
|
|
|
225,732 |
|
|
|
|
|
|
|
Property, plant and
equipment |
|
|
|
566,433 |
|
|
|
575,913 |
|
Income taxes receivable |
|
|
|
7,070 |
|
|
|
7,070 |
|
Deferred income tax asset |
|
|
|
- |
|
|
|
393 |
|
Lease asset |
|
|
|
231 |
|
|
|
361 |
|
Goodwill |
|
|
|
4,053 |
|
|
|
4,053 |
|
|
|
|
$ |
847,022 |
|
|
$ |
813,522 |
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
82,944 |
|
|
$ |
65,513 |
|
Deferred revenue |
|
|
|
53,326 |
|
|
|
16,274 |
|
Current portion of lease liabilities |
|
|
|
3,851 |
|
|
|
4,030 |
|
Current portion of long-term debt |
|
|
|
2,625 |
|
|
|
2,611 |
|
|
|
|
|
142,746 |
|
|
|
88,428 |
|
|
|
|
|
|
|
Long-term debt |
|
|
|
167,239 |
|
|
|
187,906 |
|
|
|
|
|
|
|
Lease liabilities |
|
|
|
7,731 |
|
|
|
8,101 |
|
|
|
|
|
|
|
Deferred tax liability |
|
|
|
36,613 |
|
|
|
35,650 |
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Share capital |
|
|
|
267,566 |
|
|
|
270,905 |
|
Contributed surplus |
|
|
|
5,977 |
|
|
|
5,757 |
|
Accumulated other comprehensive loss |
|
|
|
(26,607 |
) |
|
|
(26,704 |
) |
Non-controlling interest |
|
|
|
556 |
|
|
|
561 |
|
Retained earnings |
|
|
|
245,201 |
|
|
|
242,918 |
|
|
|
|
|
492,693 |
|
|
|
493,437 |
|
|
|
|
|
|
|
|
|
|
$ |
847,022 |
|
|
$ |
813,522 |
|
Consolidated Statements of Comprehensive
Income (Loss)(in thousands of Canadian dollars except per
share amounts)(unaudited)
|
|
Three months endedMarch 31 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
Revenue |
|
$ |
161,452 |
|
$ |
93,190 |
|
|
|
|
|
Cost of services |
|
|
129,798 |
|
|
71,088 |
|
Selling, general and
administration |
|
|
8,786 |
|
|
6,539 |
|
Other income |
|
|
(190 |
) |
|
(1,066 |
) |
Share-based compensation |
|
|
220 |
|
|
201 |
|
Depreciation |
|
|
19,148 |
|
|
21,847 |
|
Operating income (loss) |
|
|
3,690 |
|
|
(5,419 |
) |
|
|
|
|
Gain on sale of property,
plant and equipment |
|
|
1,476 |
|
|
289 |
|
Finance
costs, net |
|
|
(1,806 |
) |
|
(1,807 |
) |
Net income (loss) before
income taxes |
|
|
3,360 |
|
|
(6,937 |
) |
|
|
|
|
Current income tax
recovery |
|
|
(463 |
) |
|
(471 |
) |
Deferred income tax expense (recovery) |
|
|
1,356 |
|
|
(2,859 |
) |
Total income tax expense (recovery) |
|
|
893 |
|
|
(3,330 |
) |
|
|
|
|
Net income (loss) |
|
$ |
2,467 |
|
$ |
(3,607 |
) |
|
|
|
|
Net income (loss)
attributable to: |
|
|
|
Shareholders of the Company |
|
$ |
2,472 |
|
$ |
(3,579 |
) |
Non-controlling interest |
|
|
(5 |
) |
|
(28 |
) |
|
|
|
|
Income (loss) per
share |
|
|
|
Basic and diluted |
|
$ |
0.06 |
|
$ |
(0.08 |
) |
Consolidated Statements of Comprehensive
Income (Loss)
|
|
Three months endedMarch 31 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
Net income (loss) for
the period |
|
$ |
2,467 |
|
$ |
(3,607 |
) |
|
|
|
|
Foreign currency
translation |
|
|
97 |
|
|
(5,302 |
) |
|
|
|
|
Total other comprehensive income (loss) for the period |
|
|
97 |
|
|
(5,302 |
) |
|
|
|
|
Total comprehensive income (loss) |
|
$ |
2,564 |
|
$ |
(8,909 |
) |
|
|
|
|
Total comprehensive
income (loss) attributable to: |
|
|
|
|
|
|
|
Shareholders of the Company |
|
$ |
2,569 |
|
$ |
(8,881 |
) |
Non-controlling interest |
|
|
(5 |
) |
|
(28 |
) |
Consolidated Statements of Cash
Flows(in thousands of Canadian dollars)(unaudited)
|
|
Three months endedMarch 31 |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
Cash provided by (used
in): |
|
|
|
|
|
|
|
Operations: |
|
|
|
Net income (loss) for the period |
|
$ |
2,467 |
|
$ |
(3,607 |
) |
Add (deduct) items not affecting cash: |
|
|
|
Depreciation |
|
|
19,148 |
|
|
21,847 |
|
Share-based compensation |
|
|
220 |
|
|
201 |
|
Gain on sale of property, plant and equipment |
|
(1,476 |
) |
|
(289 |
) |
Finance costs, net |
|
|
1,806 |
|
|
1,807 |
|
Unrealized gain on foreign currencies translation |
|
(190 |
) |
|
(1,066 |
) |
Current income tax recovery |
|
|
(463 |
) |
|
(471 |
) |
Deferred income tax expense (recovery) |
|
|
1,356 |
|
|
(2,859 |
) |
Income taxes paid |
|
|
(317 |
) |
|
(231 |
) |
Cashflow |
|
|
22,551 |
|
|
15,332 |
|
Changes in non-cash working capital items: |
|
|
|
Accounts receivable |
|
|
(24,848 |
) |
|
(3,897 |
) |
Inventory |
|
|
(6,527 |
) |
|
1,157 |
|
Prepaid expenses and deposits |
|
|
58 |
|
|
973 |
|
Accounts payable and accrued liabilities |
|
|
16,669 |
|
|
868 |
|
Deferred revenue |
|
|
37,052 |
|
|
2,433 |
|
Cash provided by operating activities |
|
|
44,955 |
|
|
16,866 |
|
Investing: |
|
|
|
Purchase of property, plant and equipment |
|
|
(11,553 |
) |
|
(5,074 |
) |
Proceeds on disposal of property, plant and equipment |
|
3,039 |
|
|
440 |
|
Changes in non-cash working capital items |
|
|
1,343 |
|
|
972 |
|
Cash used in investing activities |
|
|
(7,171 |
) |
|
(3,662 |
) |
Financing: |
|
|
|
Repayment of long-term debt |
|
|
(20,653 |
) |
|
(10,638 |
) |
Repayment of lease liabilities |
|
|
(1,062 |
) |
|
(1,820 |
) |
Repurchase of common shares |
|
|
(3,528 |
) |
|
(329 |
) |
Interest paid |
|
|
(1,745 |
) |
|
(2,708 |
) |
|
|
|
|
Cash used in financing activities |
|
|
(26,988 |
) |
|
(15,495 |
) |
|
|
|
|
Change in cash and cash equivalents |
|
|
10,796 |
|
|
(2,291 |
) |
|
|
|
|
Cash
and cash equivalents, beginning of period |
|
|
33,365 |
|
|
22,996 |
|
|
|
|
|
Cash
and cash equivalents, end of period |
|
$ |
44,161 |
|
$ |
20,705 |
|
Segmented Information
The Company provides a variety of products and
services to the energy and other resource industries through five
reporting segments, which operate substantially in three geographic
regions. These reporting segments are Contract Drilling Services,
which includes the contracting of drilling equipment and the
provision of labour required to operate the equipment, Rentals and
Transportation Services, which includes the rental and
transportation of equipment used in energy and other industrial
operations, Compression and Process Services, which includes the
fabrication, sale, rental and servicing of gas compression and
process equipment and Well Servicing, which includes the
contracting of service rigs and the provision of labour required to
operate the equipment. Corporate includes activities related to the
Company’s corporate and public issuer affairs.
As at and for the three months ended March 31,
2022 (unaudited, in thousands of Canadian dollars)
|
Contract |
Rentals and |
Compression |
Well |
Corporate (1) |
Total |
|
Drilling |
Transportation |
and Process |
Servicing |
|
|
|
Services |
Services |
Services |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
60,062 |
|
$ |
15,400 |
|
$ |
58,565 |
|
$ |
27,425 |
|
$ |
- |
|
$ |
161,452 |
|
|
|
|
|
|
|
|
Cost of
services |
|
46,994 |
|
|
8,847 |
|
|
54,333 |
|
|
19,624 |
|
|
- |
|
|
129,798 |
|
Selling, general and
administration |
|
1,602 |
|
|
1,626 |
|
|
1,794 |
|
|
1,268 |
|
|
2,496 |
|
|
8,786 |
|
Other
income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(190 |
) |
|
(190 |
) |
Share-based
compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
220 |
|
|
220 |
|
Depreciation |
|
8,877 |
|
|
4,909 |
|
|
1,913 |
|
|
3,202 |
|
|
247 |
|
|
19,148 |
|
Operating income (loss) |
|
2,589 |
|
|
18 |
|
|
525 |
|
|
3,331 |
|
|
(2,773 |
) |
|
3,690 |
|
|
|
|
|
|
|
|
Gain (loss) on sale of
property, plant and equipment |
|
(25 |
) |
|
666 |
|
|
820 |
|
|
15 |
|
|
- |
|
|
1,476 |
|
Finance costs, net |
|
(2 |
) |
|
(16 |
) |
|
(72 |
) |
|
(5 |
) |
|
(1,711 |
) |
|
(1,806 |
) |
|
|
|
|
|
|
|
Net income (loss) before income taxes |
|
2,562 |
|
|
668 |
|
|
1,273 |
|
|
3,341 |
|
|
(4,484 |
) |
|
3,360 |
|
|
|
|
|
|
|
|
Goodwill |
|
- |
|
|
2,514 |
|
|
1,539 |
|
|
- |
|
|
- |
|
|
4,053 |
|
Total
assets |
|
338,397 |
|
|
180,381 |
|
|
227,657 |
|
|
94,335 |
|
|
6,252 |
|
|
847,022 |
|
Total
liabilities |
|
64,475 |
|
|
12,874 |
|
|
90,416 |
|
|
5,282 |
|
|
181,282 |
|
|
354,329 |
|
Capital expenditures |
|
10,182 |
|
|
234 |
|
|
1,070 |
|
|
56 |
|
|
11 |
|
|
11,553 |
|
Three months ended March 31, 2022 |
Canada |
United States |
Australia |
Other |
Total |
|
|
|
|
|
|
Revenue |
$ |
88,193 |
|
$ |
43,644 |
|
$ |
29,615 |
|
$ |
- |
|
$ |
161,452 |
|
Non-current assets (2) |
|
375,077 |
|
|
137,036 |
|
|
58,604 |
|
|
- |
|
|
570,717 |
|
As at and for the three months ended March 31,
2021 (unaudited, in thousands of Canadian dollars)
|
Contract |
Rentals and |
Compression |
Well |
Corporate |
Total |
|
Drilling |
Transportation |
and Process |
Servicing |
|
(1) |
|
|
|
Services |
Services |
Services |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
28,571 |
|
$ |
7,735 |
|
$ |
34,156 |
|
$ |
22,728 |
|
$ |
- |
|
$ |
93,190 |
|
|
|
|
|
|
|
|
Cost of services |
|
20,915 |
|
|
4,672 |
|
|
29,224 |
|
|
16,277 |
|
|
- |
|
|
71,088 |
|
Selling, general and
administration |
|
1,396 |
|
|
1,252 |
|
|
1,444 |
|
|
1,268 |
|
|
1,179 |
|
|
6,539 |
|
Other income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,066 |
) |
|
(1,066 |
) |
Share-based compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
201 |
|
|
201 |
|
Depreciation |
|
9,865 |
|
|
5,518 |
|
|
2,407 |
|
|
3,852 |
|
|
205 |
|
|
21,847 |
|
Operating income (loss) |
|
(3,605 |
) |
|
(3,707 |
) |
|
1,081 |
|
|
1,331 |
|
|
(519 |
) |
|
(5,419 |
) |
|
|
|
|
|
|
|
Gain (loss) on sale of
property, plant and equipment |
|
8 |
|
|
155 |
|
|
87 |
|
|
(31 |
) |
|
70 |
|
|
289 |
|
Finance
costs, net |
|
(1 |
) |
|
(16 |
) |
|
(78 |
) |
|
(6 |
) |
|
(1,706 |
) |
|
(1,807 |
) |
|
|
|
|
|
|
|
Net
income (loss) before income taxes |
|
(3,598 |
) |
|
(3,568 |
) |
|
1,090 |
|
|
1,294 |
|
|
(2,155 |
) |
|
(6,937 |
) |
|
|
|
|
|
|
|
Goodwill |
|
- |
|
|
2,514 |
|
|
1,539 |
|
|
- |
|
|
- |
|
|
4,053 |
|
Total assets |
|
313,993 |
|
|
194,189 |
|
|
214,582 |
|
|
99,897 |
|
|
9,302 |
|
|
831,963 |
|
Total liabilities |
|
55,347 |
|
|
8,947 |
|
|
32,301 |
|
|
5,407 |
|
|
228,011 |
|
|
330,013 |
|
Capital
expenditures |
|
4,257 |
|
|
219 |
|
|
168 |
|
|
430 |
|
|
- |
|
|
5,074 |
|
Three months ended March 31, 2021 |
Canada |
United States |
Australia |
Other |
Total |
|
|
|
|
|
|
Revenue |
$ |
59,747 |
|
$ |
18,309 |
|
$ |
15,132 |
|
$ |
2 |
|
$ |
93,190 |
|
Non-current assets (2) |
|
410,127 |
|
|
147,742 |
|
|
66,286 |
|
|
- |
|
|
624,155 |
|
(1) Corporate includes the
Company’s corporate activities and obligations pursuant to
long-term credit facilities.
(2) Includes property, plant and
equipment, lease asset (excluding current portion) and
goodwill.
Total Energy provides contract drilling
services, equipment rentals and transportation services, well
servicing and compression and process equipment and service to the
energy and other resource industries from operation centers in
North America and Australia. The common shares of Total Energy are
listed and trade on the TSX under the symbol TOT.
For further information, please contact Daniel
Halyk, President & Chief Executive Officer at (403) 216-3921 or
Yuliya Gorbach, Vice-President Finance and Chief Financial Officer
at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca
or visit our website at www.totalenergy.ca
Notes to the Financial
Highlights
(1) EBITDA means earnings
before interest, taxes, depreciation and amortization and is equal
to net income (loss) before income taxes plus finance costs plus
depreciation. EBITDA is not a recognized measure under IFRS.
Management believes that in addition to net income (loss), EBITDA
is a useful supplemental measure as it provides an indication of
the results generated by the Company’s primary business activities
prior to consideration of how those activities are financed,
amortized or how the results are taxed in various jurisdictions as
well as the cash generated by the Company’s primary business
activities without consideration of the timing of the monetization
of non-cash working capital items. Readers should be cautioned,
however, that EBITDA should not be construed as an alternative to
net income determined in accordance with IFRS as an indicator of
Total Energy’s performance. Total Energy’s method of calculating
EBITDA may differ from other organizations and, accordingly, EBITDA
may not be comparable to measures used by other organizations.
(2) Working capital equals
current assets minus current liabilities.
(3) Net Debt equals long-term
debt plus lease liabilities plus current liabilities minus current
assets. Management believes this measure provides a useful
indication of the Company’s liquidity.
(4) Basic and diluted shares
outstanding reflect the weighted average number of common shares
outstanding for the periods. See note 5 to the Company’s Condensed
Interim Consolidated Financial Statements.
Certain statements contained in this press
release, including statements which may contain words such as
"could", "should", "expect", "believe", "will" and similar
expressions and statements relating to matters that are not
historical facts are forward-looking statements. Forward-looking
statements are based upon the opinions and expectations of
management of Total Energy as at the effective date of such
statements and, in some cases, information supplied by third
parties. Although Total Energy believes the expectations reflected
in such forward-looking statements are based upon reasonable
assumptions and that information received from third parties is
reliable, it can give no assurance that those expectations will
prove to have been correct.
In particular, this press release contains
forward-looking statements concerning industry activity levels,
including expectations regarding Total Energy’s future activity
levels, market share and compression and process production
activity. Such forward-looking statements are based on a number of
assumptions and factors including fluctuations in the market for
oil and natural gas and related products and services, political
and economic conditions, central bank interest rate policy, the
demand for products and services provided by Total Energy, Total
Energy’s ability to attract and retain key personnel and other
factors. Such forward-looking statements involve known and
unknown risks and uncertainties which may cause the actual results,
performance or achievements of Total Energy to be materially
different from any future results, performances or achievements
expressed or implied by such forward-looking statements.
Reference should be made to Total Energy’s most recently filed
Annual Information Form and other public disclosures (available at
www.sedar.com) for a discussion of such risks and
uncertainties.
The TSX has neither approved nor disapproved of
the information contained herein.
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