CALGARY, Alberta, Aug. 08, 2022 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three and six months ended June 30, 2022.

Financial Highlights
($000’s except per share data)
 Three months ended June 30 Six months ended June 30
 20222021Change 20222021Change
Revenue$179,204$84,876111% $340,656$178,06691%
Operating income (loss) 8,426 (4,089)nm  12,116 (9,508)nm
EBITDA(1) 28,799 19,71646%  53,113 36,43346%
Cashflow 28,576 16,46274%  51,127 31,79461%
Net income (loss) 6,105 (2,136)nm  8,572 (5,743)nm
Attributable to shareholders 6,113 (2,108)nm  8,585 (5,687)nm
            
Per Share Data (Diluted)           
EBITDA(1)$0.67$0.4452% $1.23$0.8152%
Cashflow$0.66$0.3778% $1.18$0.7069%
            
Attributable to shareholders:           
Net income (loss)$0.14$(0.05)nm $0.20$(0.13)nm
            
Common shares (000’s)(4)           
Basic 42,307 44,830(6%)  42,509 44,950(5%)
Diluted 43,203 45,066(4%)  43,319 45,158(4%)
            
        June 30 December 31 
Financial Position at       2022 2021Change
Total Assets      $860,983$813,5226%
Long-Term Debt and Lease Liabilities (excluding current portion)165,767 196,007(15%)
Working Capital(2)       122,043 137,304(11%)
Net Debt(3)       43,724 58,703(26%)
Shareholders’ Equity       494,299 493,437-
            
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 June 30, 2022 reflect the continued recovery of the global energy industry, particularly in North America. Prolonged wet weather conditions in Australia during the second quarter of 2022 restricted field activity and resulted in a substantial year over year increase in drilling and service rig paid standby days. The Company did not receive any COVID-19 relief funds during the quarter as compared to $8.1 million received in the second quarter of 2021.

Contract Drilling Services (“CDS”)
  Three months ended June 30 Six months ended June 30
 2022
2021Change2022
2021Change
Revenue$49,440 $25,740 92% $109,502 $54,311 102% 
EBITDA(1)$8,808 $4,708 87% $20,249 $10,976 84% 
EBITDA(1)as a % of revenue 18%  18% -  18%  20% (10%) 
Operating days(2) 2,105  1,235 70%  4,788  2,773 73% 
Canada 1,009  563 79%  2,634  1,647 60% 
United States 696  467 49%  1,397  768 82% 
Australia 400  205 95%  757  358 111% 
Revenue per operating day(2), dollars$23,487 $20,842 13% $22,870 $19,586 17% 
Canada 21,304  15,625 36%  20,711  16,175 28% 
United States 24,165  19,340 25%  22,998  19,046 21% 
Australia 27,813  38,590 (28%)  30,145  36,433 (17%) 
Utilization 24%  14% 71%  28%  16% 75% 
Canada 14%  8% 75%  19%  11% 73% 
United States 59%  39% 51%  59%  33% 79% 
Australia 88%  45% 96%  84%  40% 110% 
Rigs, average for period 95  97 (2%)  95  98 (3%) 
Canada 77  79 (3%)  77  80 (4%) 
United States 13  13 -  13  13 - 
Australia 5  5 -  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. 
  

Second quarter 2022 drilling activity in North America continued to increase with relatively strong 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 levels improved in the second quarter of 2022 compared to 2021 as two drilling rigs returned to service following the completion of recertifications and upgrades although a substantial year over year increase in lower rate paid stand-by days due to wet weather contributed to lower revenue per operating day but also lower operating costs. The second quarter EBITDA margin was consistent on a year over year basis with increased pricing offsetting the absence of COVID-19 relief funds and operating cost inflation.

Rentals and Transportation Services (“RTS”)
 Three months ended June 30Six months ended June 30
 20222021Change20222021Change
Revenue$13,441 $6,053 122% $28,841 $13,788 109% 
EBITDA(1)$3,500 $3,324 5% $9,093 $5,290 72% 
EBITDA(1)as a % of revenue 26%  55% (53%)  32%  38% (16%) 
Revenue per utilized piece of equipment, dollars$10,219 $7,111 44% $20,444 $16,199 26% 
Pieces of rental equipment 9,390  10,630 (12%)  9,390  10,630 (12%) 
Canada 8,510  9,670 (12%)  8,510  9,670 (12%) 
United States 880  960 (8%)  880  960 (8%) 
Rental equipment utilization 14%  8% 75%  15%  8% 88% 
Canada 13%  7% 86%  14%  8% 75% 
United States 25%  12% 108%  28%  12% 133% 
Heavy trucks 71  80 (11%)  71  80 (11%) 
Canada 48  56 (14%)  48  56 (14%) 
United States 23  24 (4%)  23  24 (4%) 
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
 

Second quarter revenue in the RTS segment increased as compared to the same period in 2021 due to higher equipment utilization and modestly improved pricing. Increased equipment utilization as well as higher revenue per utilized piece of equipment contributed to the year over year increase in second quarter EBITDA. Second quarter EBITDA margin was lower compared to the same period in 2021 due to the absence of COVID-19 relief assistance combined with significant operating cost inflation that was not fully recovered through price increases.

Compression and Process Services (“CPS”)
 Three months ended June 30
Six months ended June 30
 20222021Change20222021Change
Revenue$92,782 $33,657 176% $151,347 $67,813 123% 
EBITDA(1)$14,948 $7,682 95% $18,206 $11,257 62% 
EBITDA(1)as a % of revenue 16%  23% (30%)  12%  17% (29%) 
Horsepower of equipment on rent at period end 30,970  27,420 13%  30,970  27,420 13% 
Canada 13,975  11,840 18%  13,975  11,840 18% 
United States 16,995  15,580 9%  16,995  15,580 9% 
Rental equipment utilization during the period (HP)(2) 54%  47% 15%  53%  45% 18% 
Canada 39%  31% 26%  38%  31% 23% 
United States 75%  74% 1%  74%  67% 10% 
Sales backlog at period end, $ million$181.7 $57.5 216% $181.7 $57.5 216% 
(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 second quarter revenue was due primarily to higher fabrication sales, increased equipment overhaul activity and $7.4 million of contract cancellation revenue. Compression rental fleet utilization continued to recover during the second quarter of 2022. The absence of COVID-19 relief assistance and general operating cost inflation contributed to a lower second quarter EBITDA margin in 2022 as compared to 2021. Improved pricing following the completion during the first quarter of 2022 of lower margin fabrication orders received in 2021 contributed to a substantial sequential quarterly improvement in segment margins.   The fabrication sales backlog continued to grow during the second quarter of 2022, increasing by $34.2 million, or 23%, compared to the $147.5 million backlog at December 31, 2021 and $1.0 million from the $180.7 million backlog at March 31, 2022 after deducting the cancelled contracts.   

Well Servicing (“WS”)
  Three months ended June 30 Six months ended June 30
 20222021Change20222021Change
Revenue$23,541 $19,426 21% $50,966 $42,154 21% 
EBITDA(1)$3,729 $4,667 (20%) $10,277 $9,819 5% 
EBITDA(1)as a % of revenue 16%  24% (33%)  20%  23% (13%) 
Service hours(2) 26,007  22,201 17%  56,846  51,134 11% 
Canada 10,707  8,303 29%  27,157  25,425 7% 
United States 4,556  3,449 32%  8,710  6,060 44% 
Australia 10,744  10,449 3%  20,979  19,649 7% 
Revenue per service hour(2), dollars$905 $875 3% $897 $824 9% 
Canada 925  686 35%  866  659 31% 
United States 892  664 34%  856  674 27% 
Australia 891  1,095 (19%)  953  1,084 (12%) 
Utilization(3) 27%  21% 29%  31%  27% 15% 
Canada 21%  16% 31%  26%  25% 4% 
United States 46%  27% 70%  44%  24% 83% 
Australia 41%  40% 3%  40%  38% 5% 
Rigs, average for period 80  83 (4%)  80  83 (4%) 
Canada 57  57 -  57  57 - 
United States 11  14 (21%)  11  14 (21%) 
Australia 12  12 -  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.
 

Second quarter WS segment revenue increased in 2022 as compared to 2021 due primarily to improved North American activity, higher pricing and the mix of equipment operating. EBITDA for the second quarter of 2022 was lower compared to the same period last year primarily due to Australia where field activity was limited due to prolonged wet weather conditions that resulted in a substantial year over year increase in lower rate paid stand-by. Also impacting the WS segment’s EBITDA and EBITDA margin for the second quarter of 2022 compared to 2021 was the absence of COVID-19 relief funds and significant operating cost inflation.

Corporate

During the second quarter of 2022, Total Energy remained focused on the safe and efficient operation of its business and improving the overall financial performance of the Company in a challenging cost environment. The $13.2 million of second quarter cash flow remaining after funding net capital expenditures and lease and interest payments was directed towards $10.7 million of debt reduction and $2.4 million of share repurchases under the Company’s normal course issuer bid.

For the six months ended June 30, 2022, after changes in non-cash working capital items and funding $21.1 million of net capital expenditures, $3.4 million of interest payments and $2.3 million of lease payments, Total Energy has generated $43.2 million of free cash flow. This free cash flow has been allocated as to $31.3 million of debt repayment, $5.9 million of share repurchases and payment of a $0.06 per share quarterly dividend to shareholders of record on June 30, 2022 that was paid on July 15, 2022.

Total Energy exited the second quarter of 2022 with $122.0 million of positive working capital, including $42.3 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 June 30, 2022 was 3.39%.

Outlook

Total Energy’s consolidated financial results for the second quarter exceeded first quarter results, which is an exceptional occurrence given the seasonality of Canadian operations. Despite market and commodity price volatility, energy service industry fundamentals continue to improve. Total Energy’s active drilling rig count in Canada currently exceeds the peak rig count reached during the first quarter of 2022 and provides optimism for activity levels for the remainder of 2022. Industry equipment and personnel constraints have begun to appear, which has supported continued pricing recovery in all business segments.

In response to increasing activity levels and longer lead times for certain equipment, Total Energy has increased its 2022 capital expenditure budget to $56.2 million. Included in this $14.1 million increase is $10.0 million for new equipment and equipment upgrades in the CDS, RTS and WS segments and $4.1 million of light duty vehicles for use in all business segments. The Company intends to finance its 2022 capital expenditure budget with cash on hand and, in respect of the light duty vehicles, $4.1 million of capital leases.

After funding its capital expenditure commitments, Total Energy expects to generate significant free cash flow for the remainder of 2022. Given current market conditions, debt repayment and share buybacks remain attractive opportunities for deployment of such free cash flow. The Company also continues to evaluate consolidation opportunities within its existing business segments.

Conference Call

At 9:00 a.m. (Mountain Time) on August 9, 2022 Total Energy will conduct a conference call and webcast to discuss its second 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 September 9, 2022 by dialing (855) 669-9658 (passcode 9194).

Selected Financial Information

Selected financial information relating to the three and six months ended June 30, 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)
 
   June 30 December 31
   2022 2021
   (unaudited) (audited)
Assets     
Current assets:     
Cash and cash equivalents  $42,345  $33,365 
Accounts receivable   130,820   90,543 
Inventory   93,513   89,921 
Prepaid expenses and deposits   15,457   9,208 
Income taxes receivable   2,570   2,208 
Current portion of lease asset   511   487 
    285,216   225,732 
      
Property, plant and equipment   564,540   575,913 
Income taxes receivable   7,070   7,070 
Deferred income tax asset   -   393 
Lease asset   104   361 
Goodwill   4,053   4,053 
   $860,983  $813,522 
      
Liabilities & Shareholders' Equity     
Current liabilities:     
Accounts payable and accrued liabilities  $96,923  $65,513 
Deferred revenue   56,073   16,274 
Dividends payable   2,532   - 
Current portion of lease liabilities   5,004   4,030 
Current portion of long-term debt   2,641   2,611 
    163,173   88,428 
      
Long-term debt   156,572   187,906 
      
Lease liabilities   9,195   8,101 
      
Deferred tax liability   37,744   35,650 
      
Shareholders' equity:     
Share capital   265,769   270,905 
Contributed surplus   3,434   5,757 
Accumulated other comprehensive loss   (26,493)   (26,704) 
Non-controlling interest   548   561 
Retained earnings   251,041   242,918 
    494,299   493,437 
      
   $860,983  $813,522 


Consolidated Statements of Comprehensive Income (Loss)
Unaudited (in thousands of Canadian dollars except per share amounts)
 
  Three months ended
June 30		Six months ended
June 30
  2022202120222021
      
Revenue $179,204 $84,876 $340,656 $178,066 
      
Cost of services  140,917  63,092  270,715  134,180 
Selling, general and administration  10,108  6,069  18,894  12,608 
Other income  (485)  (1,114)  (675)  (2,180) 
Share-based compensation  259  189  479  390 
Depreciation  19,979  20,729  39,127  42,576 
Operating income (loss)  8,426  (4,089)  12,116  (9,508) 
      
Gain on sale of property, plant and equipment  394  3,076  1,870  3,365 
Finance costs, net  (1,563)  (1,772)  (3,369)  (3,579) 
Net income (loss) before income taxes  7,257  (2,785)  10,617  (9,722) 
      
Current income tax expense (recovery)  21  16  (442)  (455) 
Deferred income tax expense (recovery)  1,131  (665)  2,487  (3,524) 
Total income tax expense (recovery)  1,152  (649)  2,045  (3,979) 
      
Net income (loss) $6,105 $(2,136) $8,572 $(5,743) 
      
Net income (loss) attributable to:     
Shareholders of the Company $6,113 $(2,108) $8,585 $(5,687) 
Non-controlling interest  (8)  (28)  (13)  (56) 
      
Income (loss) per share     
Basic and diluted $0.14 $(0.05) $0.20 $(0.13) 
      


Consolidated Statements of Comprehensive Income (Loss)
 
  Three months ended
June 30		Six months ended
June 30
  2022202120222021
      
Net income (loss) for the period $6,105 $(2,136) $8,572 $(5,743) 
      
Foreign currency translation  114  (5,820)  211  (11,122) 
Total other comprehensive income (loss) for the period  114  (5,820)  211  (11,122) 
Total comprehensive income (loss) $6,219 $(7,956) $8,783 $(16,865) 
Total comprehensive income (loss) attributable to:     
Shareholders of the Company $6,227 $(7,928) $8,796 $(16,809) 
Non-controlling interest  (8)  (28)  (13)  (56) 


Consolidated Statements of Cash Flows
Unaudited (in thousands of Canadian dollars)
 
  Three months ended
June 30		Six months ended
June 30
  2022202120222021
      
Cash provided by (used in):     
      
Operations:     
Net income (loss) for the period $6,105 $(2,136) $8,572 $(5,743) 
Add (deduct) items not affecting cash:     
Depreciation  19,979  20,729  39,127  42,576 
Share-based compensation  259  189  479  390 
Gain on sale of property, plant and equipment (394)  (3,076)  (1,870)  (3,365) 
Finance costs, net  1,563  1,772  3,369  3,579 
Unrealized gain on foreign currencies translation (485)  (1,114)  (675)  (2,180) 
Current income tax expense (recovery)  21  16  (442)  (455) 
Deferred income tax expense (recovery)  1,131  (665)  2,487  (3,524) 
Income taxes paid  397  747  80  516 
Cashflow  28,576  16,462  51,127  31,794 
Changes in non-cash working capital items:     
Accounts receivable  (15,130)  3,738  (39,978)  (159) 
Inventory  2,937  972  (3,590)  2,129 
Prepaid expenses and deposits  (6,307)  1,068  (6,249)  2,041 
Accounts payable and accrued liabilities  12,170  7,123  28,839  7,991 
Deferred revenue  2,747  2,259  39,799  4,692 
Cash provided by operating activities  24,993  31,622  69,948  48,488 
Investing:     
Purchase of property, plant and equipment  (13,406)  (8,079)  (24,959)  (13,153) 
Proceeds on disposal of property, plant and equipment 838  8,005  3,877  8,445 
Changes in non-cash working capital items  1,608  79  2,951  1,051 
Cash (used in) provided by investing activities  (10,960)  5  (18,131)  (3,657) 
Financing:     
Repayment of long-term debt  (10,651)  (18,637)  (31,304)  (29,275) 
Repayment of lease liabilities  (1,219)  (1,802)  (2,281)  (3,622) 
Repurchase of common shares  (2,371)  (1,924)  (5,899)  (2,253) 
Shares issued on exercise of share options  31  -  31  - 
Interest paid  (1,639)  (738)  (3,384)  (3,446) 
      
Cash used in financing activities  (15,849)  (23,101)  (42,837)  (38,596) 
      
Change in cash and cash equivalents  (1,816)  8,526  8,980  6,235 
      
Cash and cash equivalents, beginning of period  44,161  20,705  33,365  22,996 
      
Cash and cash equivalents, end of period $42,345 $29,231 $42,345 $29,231 
      

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 June 30, 2022(unaudited, in thousands of Canadian dollars)
 ContractRentals andCompressionWellCorporate(1)Total
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
Revenue$49,440 $13,441 $92,782 $23,541 $- $179,204 
       
Cost of services 39,171  8,213  74,989  18,544  -  140,917 
Selling, general and administration 1,754  1,702  2,930  1,310  2,412  10,108 
Other income -  -  -  -  (485)  (485) 
Share-based compensation -  -  -  -  259  259 
Depreciation 8,882  4,886  2,779  3,218  214  19,979 
Operating income (loss) (367)  (1,360)  12,084  469  (2,400)  8,426 
       
Gain (loss) on sale of property, plant and equipment 293  (26)  85  42  -  394 
Finance costs, net (4)  (23)  (102)  (4)  (1,430)  (1,563) 
       
Net income (loss) before income taxes (78)  (1,409)  12,067  507  (3,830)  7,257 
       
Goodwill -  2,514  1,539  -  -  4,053 
Total assets 339,585  181,049  247,172  87,703  5,474  860,983 
Total liabilities 71,626  13,936  103,052  6,756  171,314  366,684 
Capital expenditures 7,282  2,524  1,691  1,909  -  13,406 


Three months ended June 30, 2022CanadaUnited StatesAustraliaOtherTotal
      
Revenue$96,074$45,714$37,416$-$179,204
Non-current assets(2) 374,963 140,254 53,480 - 568,697


As at and for the three months ended June 30, 2021 (unaudited, in thousands of Canadian dollars)
 ContractRentals andCompressionWellCorporateTotal
 DrillingTransportationand ProcessServicing(1)
 
 ServicesServicesServices   
       
Revenue$25,740 $6,053 $33,657 $19,426 $- $84,876 
       
Cost of services 20,355  3,029  25,932  13,776  -  63,092 
Selling, general and administration 949  1,276  1,180  1,061  1,603  6,069 
Other income -  -  -  -  (1,114)  (1,114) 
Share-based compensation -  -  -  -  189  189 
Depreciation 9,461  5,042  2,265  3,749  212  20,729 
Operating income (loss) (5,025)  (3,294)  4,280  840  (890)  (4,089) 
       
Gain on sale of property, plant and equipment 272  1,576  1,137  78  13  3,076 
Finance costs, net (8)  (30)  (74)  (5)  (1,655)  (1,772) 
       
Net income (loss) before income taxes (4,761)  (1,748)  5,343  913  (2,532)  (2,785) 
       
Goodwill -  2,514  1,539  -  -  4,053 
Total assets 313,553  186,423  212,647  95,469  3,523  811,615 
Total liabilities 55,394  8,253  38,462  4,887  212,360  319,356 
Capital expenditures 5,482  61  2,413  123  -  8,079 


Three months ended June 30, 2021CanadaUnited StatesAustraliaOtherTotal
      
Revenue$42,548$22,894$19,434$-$84,876
Non-current assets(2) 395,471 142,563 64,416 - 602,450
(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.


As at and for the six months ended June 30, 2022(unaudited, in thousands of Canadian dollars)
 ContractRentals andCompressionWellCorporate (1)Total
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
Revenue$109,502 $28,841 $151,347 $50,966 $- $340,656 
       
Cost of services 86,165  17,060  129,322  38,168  -  270,715 
Selling, general and administration 3,356  3,328  4,724  2,578  4,908  18,894 
Other income -  -  -  -  (675)  (675) 
Share-based compensation -  -  -  -  479  479 
Depreciation 17,759  9,795  4,692  6,420  461  39,127 
Operating income (loss) 2,222  (1,342)  12,609  3,800  (5,173)  12,116 
       
Gain on sale of property, plant and equipment 268  640  905  57  -  1,870 
Finance costs, net (6)  (39)  (174)  (9)  (3,141)  (3,369) 
       
Net income (loss) before income taxes 2,484  (741)  13,340  3,848  (8,314)  10,617 
       
Goodwill -  2,514  1,539  -  -  4,053 
Total assets 339,585  181,049  247,172  87,703  5,474  860,983 
Total liabilities 71,626  13,936  103,052  6,756  171,314  366,684 
Capital expenditures 17,464  2,758  2,761  1,965  11  24,959 


Six months ended June 30, 2022CanadaUnited StatesAustraliaOtherTotal
      
Revenue$184,267$89,358$67,031$-$340,656
Non-current assets(2) 374,963 140,254 53,480 - 568,697


As at and for the six months ended June 30, 2021(unaudited, in thousands of Canadian dollars)
 ContractRentals andCompressionWellCorporateTotal
 DrillingTransportationand ProcessServicing (1)  
 ServicesServicesServices   
       
Revenue$54,311 $13,788 $67,813 $42,154 $- $178,066 
       
Cost of services 41,270  7,701  55,156  30,053  -  134,180 
Selling, general and administration 2,345  2,528  2,624  2,329  2,782  12,608 
Other income -  -  -  -  (2,180)  (2,180) 
Share-based compensation -  -  -  -  390  390 
Depreciation 19,326  10,560  4,672  7,601  417  42,576 
Operating income (loss) (8,630)  (7,001)  5,361  2,171  (1,409)  (9,508) 
       
Gain on sale of property, plant and equipment 280  1,731  1,224  47  83  3,365 
Finance costs, net (9)  (46)  (152)  (11)  (3,361)  (3,579) 
       
Net income (loss) before income taxes (8,359)  (5,316)  6,433  2,207  (4,687)  (9,722) 
       
Goodwill -  2,514  1,539  -  -  4,053 
Total assets 313,553  186,423  212,647  95,469  3,523  811,615 
Total liabilities 55,394  8,253  38,462  4,887  212,360  319,356 
Capital expenditures 9,739  280  2,581  553  -  13,153 


Six months ended June 30, 2021CanadaUnited StatesAustraliaOtherTotal
      
Revenue$102,293$41,203$34,568$2$178,066
Non-current assets(2) 395,471 142,563 64,416 - 602,450
(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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Source: Total Energy Services Inc.

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