Financial Highlights
($000’s except per share data)
Three months ended | Nine months ended | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
Revenue | $ | 118,881 | $ | 77,240 | 54 | % | $ | 296,947 | $ | 282,278 | 5 | % | |||||
Operating income (loss) | 6,415 | (5,894 | ) | nm | (3,093 | ) | (32,526 | ) | (90 | %) | |||||||
EBITDA (1) | 27,015 | 17,869 | 51 | % | 63,448 | 61,658 | 3 | % | |||||||||
Cashflow | 26,253 | 19,810 | 33 | % | 58,047 | 55,514 | 5 | % | |||||||||
Net income (loss) | 4,279 | (4,602 | ) | nm | (1,464 | ) | (28,723 | ) | (95 | %) | |||||||
Attributable to shareholders | 4,278 | (4,618 | ) | nm | (1,409 | ) | (28,711 | ) | (95 | %) | |||||||
Per Share Data (Diluted) | |||||||||||||||||
EBITDA (1) | $ | 0.60 | $ | 0.40 | 50 | % | $ | 1.41 | $ | 1.37 | 3 | % | |||||
Cashflow | $ | 0.58 | $ | 0.44 | 32 | % | $ | 1.29 | $ | 1.23 | 5 | % | |||||
Attributable to shareholders: | |||||||||||||||||
Net income (loss) | $ | 0.09 | $ | (0.10 | ) | nm | $ | (0.03 | ) | $ | (0.64 | ) | (95 | %) | |||
Common shares (000’s)(4) | |||||||||||||||||
Basic | 44,921 | 45,081 | 0 | % | 44,737 | 45,083 | (1 | %) | |||||||||
Diluted | 45,164 | 45,081 | 0 | % | 44,965 | 45,083 | 0 | % | |||||||||
Financial Position at | 2021 | 2020 | Change | ||||||||||||||
Total Assets | $ | 822,898 | $ | 849,579 | (3 | %) | |||||||||||
Long-Term Debt and Lease Liabilities (excluding current portion) | 201,967 | 238,937 | (15 | %) | |||||||||||||
Working Capital (2) | 138,383 | 138,940 | 0 | % | |||||||||||||
Net Debt (3) | 63,584 | 99,997 | (36 | %) | |||||||||||||
Shareholders’ Equity | 497,356 | 510,987 | (3 | %) | |||||||||||||
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
Contract Drilling Services (“CDS”)
Three months ended | Nine months ended | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
Revenue | $ | 43,334 | $ | 16,178 | 168 | % | $ | 97,645 | $ | 73,373 | 33 | % | |||||
EBITDA (1) | $ | 11,392 | $ | 3,142 | 263 | % | $ | 22,368 | $ | 13,224 | 69 | % | |||||
EBITDA (1) as a % of revenue | 26 | % | 19 | % | 37 | % | 23 | % | 18 | % | 28 | % | |||||
Operating days(2) | 2,221 | 717 | 210 | % | 4,994 | 3,323 | 50 | % | |||||||||
1,318 | 372 | 254 | % | 2,965 | 1,901 | 56 | % | ||||||||||
610 | 127 | 380 | % | 1,378 | 495 | 178 | % | ||||||||||
293 | 218 | 34 | % | 651 | 927 | (30 | %) | ||||||||||
Revenue per operating day(2), dollars | $ | 19,511 | $ | 22,563 | (14 | %) | $ | 19,552 | $ | 22,080 | (11 | %) | |||||
16,187 | 14,231 | 14 | % | 16,180 | 16,324 | (1 | %) | ||||||||||
19,269 | 18,307 | 5 | % | 19,144 | 20,487 | (7 | %) | ||||||||||
34,969 | 39,261 | (11 | %) | 35,774 | 34,737 | 3 | % | ||||||||||
Utilization | 25 | % | 8 | % | 213 | % | 19 | % | 12 | % | 58 | % | |||||
19 | % | 5 | % | 280 | % | 14 | % | 9 | % | 56 | % | ||||||
51 | % | 11 | % | 364 | % | 39 | % | 11 | % | 255 | % | ||||||
64 | % | 47 | % | 36 | % | 48 | % | 68 | % | (29 | %) | ||||||
Rigs, average for period | 95 | 98 | (3 | %) | 97 | 103 | (6 | %) | |||||||||
77 | 80 | (4 | %) | 79 | 81 | (2 | %) | ||||||||||
13 | 13 | - | 13 | 17 | (24 | %) | |||||||||||
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.
Third quarter drilling activity in
Rentals and Transportation Services (“RTS”)
Three months ended | Nine months ended | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
Revenue | $ | 12,313 | $ | 5,939 | 107 | % | $ | 26,101 | $ | 27,554 | (5 | %) | |||||
EBITDA (1) | $ | 4,638 | $ | 2,544 | 82 | % | $ | 9,928 | $ | 7,275 | 36 | % | |||||
EBITDA (1) as a % of revenue | 38 | % | 43 | % | (12 | %) | 38 | % | 26 | % | 46 | % | |||||
Revenue per utilized piece of equipment, dollars | $ | 9,452 | $ | 7,463 | 19 | % | $ | 26,023 | $ | 28,842 | (10 | %) | |||||
Pieces of rental equipment | 9,410 | 10,640 | (12 | %) | 9,410 | 10,640 | (12 | %) | |||||||||
8,567 | 9,710 | (12 | %) | 8,567 | 9,710 | (12 | %) | ||||||||||
843 | 930 | (9 | %) | 843 | 930 | (9 | %) | ||||||||||
Rental equipment utilization | 13 | % | 7 | % | 86 | % | 10 | % | 9 | % | 11 | % | |||||
13 | % | 7 | % | 86 | % | 9 | % | 7 | % | 29 | % | ||||||
19 | % | 6 | % | 217 | % | 14 | % | 21 | % | (33 | %) | ||||||
Heavy trucks | 80 | 87 | (8 | %) | 80 | 87 | (8 | %) | |||||||||
56 | 62 | (10 | %) | 56 | 62 | (10 | %) | ||||||||||
24 | 25 | (4 | %) | 24 | 25 | (4 | %) |
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
Third quarter revenue in the RTS segment increased as compared to the same period in 2020 due to higher equipment utilization in
Compression and Process Services (“CPS”)
Three months ended | Nine months ended | ||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
Revenue | $ | 38,188 | $ | 32,282 | 18 | % | $ | 106,001 | $ | 103,238 | 3 | % | |||||
EBITDA (1) | $ | 5,843 | $ | 5,722 | 2 | % | $ | 17,100 | $ | 16,838 | 2 | % | |||||
EBITDA (1) as a % of revenue | 15 | % | 18 | % | (17 | %) | 16 | % | 16 | % | - | ||||||
Horsepower of equipment on rent at period end | 28,605 | 35,400 | (19 | %) | 28,605 | 35,400 | (19 | %) | |||||||||
12,080 | 17,300 | (30 | %) | 12,080 | 17,300 | (30 | %) | ||||||||||
16,525 | 18,150 | (9 | %) | 16,525 | 18,150 | (9 | %) | ||||||||||
Rental equipment utilization during the period (HP)(2) | 53 | % | 66 | % | (20 | %) | 47 | % | 67 | % | (30 | %) | |||||
37 | % | 52 | % | (29 | %) | 33 | % | 53 | % | (38 | %) | ||||||
78 | % | 94 | % | (17 | %) | 71 | % | 97 | % | (27 | %) | ||||||
Sales backlog at period end, $ million | $ | 95.5 | $ | 37.0 | 158 | % | $ | 95.5 | $ | 37.0 | 158 | % |
(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 third quarter revenue was due primarily to higher fabrication sales and increased equipment overhaul activity. Compression rental fleet utilization continued to recover during the third quarter of 2021 but remained below prior year levels. Ongoing cost management and increased overhead absorption from higher fabrication activity contributed to a year over year increase in third quarter EBITDA. Third quarter EBITDA margin was lower on a year over year basis due to a
Well Servicing (“WS”)
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2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
Revenue | $ | 25,046 | $ | 22,841 | 10 | % | $ | 67,200 | $ | 78,113 | (14 | %) | |||||
EBITDA (1) | $ | 6,494 | $ | 7,581 | (14 | %) | $ | 16,313 | $ | 21,071 | (23 | %) | |||||
EBITDA (1) as a % of revenue | 26 | % | 33 | % | (21 | %) | 24 | % | 27 | % | (11 | %) | |||||
Service hours(2) | 29,927 | 26,069 | 15 | % | 81,060 | 89,096 | (9 | %) | |||||||||
15,076 | 9,226 | 63 | % | 40,501 | 28,969 | 40 | % | ||||||||||
4,147 | 1,896 | 119 | % | 10,206 | 8,897 | 15 | % | ||||||||||
10,704 | 14,947 | (28 | %) | 30,353 | 51,230 | (41 | %) | ||||||||||
Revenue per service hour(2), dollars | $ | 837 | $ | 876 | (4 | %) | $ | 829 | $ | 877 | (5 | %) | |||||
719 | 615 | 17 | % | 682 | 643 | 6 | % | ||||||||||
716 | 687 | 4 | % | 691 | 733 | (6 | %) | ||||||||||
1,050 | 1,061 | (1 | %) | 1,072 | 1,034 | 4 | % | ||||||||||
Utilization(3) | 31 | % | 23 | % | 35 | % | 28 | % | 26 | % | 8 | % | |||||
29 | % | 18 | % | 61 | % | 26 | % | 19 | % | 37 | % | ||||||
32 | % | 15 | % | 113 | % | 27 | % | 23 | % | 17 | % | ||||||
40 | % | 56 | % | (29 | %) | 39 | % | 65 | % | (40 | %) | ||||||
Rigs, average for period | 83 | 83 | - | 83 | 83 | - | |||||||||||
57 | 57 | - | 57 | 57 | - | ||||||||||||
14 | 14 | - | 14 | 14 | - | ||||||||||||
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
WS segment revenue increased in the third quarter of 2021 as compared to 2020 due to higher production activity levels in
Corporate
Total Energy continued to focus on the safe and efficient operation of its business and the preservation of its balance sheet strength and financial liquidity during the third quarter of 2021. Bank debt was reduced by
The Company exited the third quarter of 2021 with
Outlook
Total Energy’s diversified geographic and business exposure provided a measure of stability following the outbreak of the COVID-19 pandemic in March of 2020 and contributed to the generation of significant free cash flow during very difficult industry conditions. A substantial portion of the Company’s free cash flow generated since the 2020 collapse in oil prices has been directed towards debt repayment, with bank debt (net of cash) being reduced from
In response to increasing demand for drilling rigs and compression rental equipment, Total Energy has increased its 2021 capital expenditure budget by
While oil and natural gas prices remain elevated and activity levels continue to modestly improve from the historic lows of 2020, activity levels remain subdued relative to prior periods of similarly high oil and natural gas prices. At current commodity prices, Total Energy expects that industry activity levels in all geographies will continue to increase albeit at a measured pace, due in part to the pressure on many oil and natural gas producers to curtail reinvestment. A reduction in energy service industry capacity will serve to offset muted capital expenditure programs as personnel and equipment shortages begin to materialize, particularly in
Given the unique and uncertain environment currently faced by the energy industry, Total Energy remains focused on the safe and efficient operation of its business, debt repayment, disciplined capital deployment and enhancing shareholder returns, including through share repurchases under its recently renewed normal course issuer bid. Total Energy also continues to pursue opportunities to leverage its technologies, expertise and equipment to pursue new business opportunities, including in the areas of alternative resource extraction and emissions reduction and sequestration.
Conference Call
At
Selected Financial Information
Selected financial information relating to the three and nine months ended
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
2021 | 2020 | ||||||
(unaudited) | (audited) | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 25,569 | $ | 22,996 | |||
Accounts receivable | 90,240 | 73,373 | |||||
Inventory | 99,225 | 95,586 | |||||
Prepaid expenses and deposits | 8,746 | 6,876 | |||||
Income taxes receivable | 1,467 | 1,287 | |||||
Current portion of lease asset | 473 | 566 | |||||
225,720 | 200,684 | ||||||
Property, plant and equipment | 584,589 | 636,996 | |||||
Income taxes receivable | 7,070 | 7,070 | |||||
Deferred income tax asset | 970 | 57 | |||||
Lease asset | 496 | 719 | |||||
4,053 | 4,053 | ||||||
$ | 822,898 | $ | 849,579 | ||||
Liabilities & Shareholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 63,208 | $ | 46,410 | |||
Deferred revenue | 17,588 | 6,365 | |||||
Current portion of lease liabilities | 3,945 | 6,417 | |||||
Current portion of long-term debt | 2,596 | 2,552 | |||||
87,337 | 61,744 | ||||||
Long-term debt | 193,562 | 230,517 | |||||
Lease liabilities | 8,405 | 8,420 | |||||
Deferred tax liability | 36,238 | 37,911 | |||||
Shareholders' equity: | |||||||
Share capital | 277,121 | 284,077 | |||||
Contributed surplus | 5,542 | 4,966 | |||||
Accumulated other comprehensive loss | (26,737 | ) | (18,736 | ) | |||
Non-controlling interest | 574 | 629 | |||||
Retained earnings | 240,856 | 240,051 | |||||
497,356 | 510,987 | ||||||
$ | 822,898 | $ | 849,579 | ||||
Consolidated Statements of Comprehensive Income (Loss)
(in thousands of Canadian dollars except per share amounts)
(unaudited)
Three months ended | Nine months ended | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Revenue | $ | 118,881 | $ | 77,240 | $ | 296,947 | $ | 282,278 | ||||
Cost of services | 85,255 | 54,447 | 219,435 | 207,613 | ||||||||
Selling, general and administration | 7,254 | 5,691 | 19,862 | 22,032 | ||||||||
Other (income) expense | (474 | ) | 579 | (2,654 | ) | (6,813 | ) | |||||
Share-based compensation | 186 | 21 | 576 | 690 | ||||||||
Depreciation | 20,245 | 22,396 | 62,821 | 91,282 | ||||||||
Operating income (loss) | 6,415 | (5,894 | ) | (3,093 | ) | (32,526 | ) | |||||
Gain on sale of property, plant and equipment | 355 | 1,367 | 3,720 | 2,902 | ||||||||
Finance costs, net | (1,675 | ) | (2,106 | ) | (5,254 | ) | (8,063 | ) | ||||
Net income (loss) before income taxes | 5,095 | (6,633 | ) | (4,627 | ) | (37,687 | ) | |||||
Current income tax expense (recovery) | (122 | ) | 14 | (577 | ) | 2,307 | ||||||
Deferred income tax expense (recovery) | 938 | (2,045 | ) | (2,586 | ) | (11,271 | ) | |||||
Total income tax expense (recovery) | 816 | (2,031 | ) | (3,163 | ) | (8,964 | ) | |||||
Net income (loss) | $ | 4,279 | $ | (4,602 | ) | $ | (1,464 | ) | $ | (28,723 | ) | |
Net income (loss) attributable to: | ||||||||||||
Shareholders of the Company | $ | 4,278 | $ | (4,618 | ) | $ | (1,409 | ) | $ | (28,711 | ) | |
Non-controlling interest | 1 | 16 | (55 | ) | (12 | ) | ||||||
Income (loss) per share | ||||||||||||
Basic | $ | 0.10 | $ | (0.10 | ) | $ | (0.03 | ) | $ | (0.64 | ) | |
Diluted | 0.09 | (0.10 | ) | (0.03 | ) | (0.64 | ) | |||||
Condensed Interim Consolidated Statements of Comprehensive Income (Loss)
(unaudited)
Three months ended | Nine months ended | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Net income (loss) for the period | $ | 4,279 | $ | (4,602 | ) | $ | (1,464 | ) | $ | (28,723 | ) | |
Foreign currency translation | 3,121 | (2,206 | ) | (8,001 | ) | 2,636 | ||||||
Deferred tax effect | - | (125 | ) | - | (126 | ) | ||||||
Total other comprehensive income (loss) for the period | 3,121 | (2,331 | ) | (8,001 | ) | 2,510 | ||||||
Total comprehensive income (loss) | $ | 7,400 | $ | (6,933 | ) | $ | (9,465 | ) | $ | (26,213 | ) | |
Total comprehensive income (loss) attributable to: | ||||||||||||
Shareholders of the Company | $ | 7,399 | $ | (6,949 | ) | $ | (9,410 | ) | $ | (26,201 | ) | |
Non-controlling interest | 1 | 16 | (55 | ) | (12 | ) | ||||||
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
Three months ended | Nine months ended | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Cash provided by (used in): | ||||||||||||
Operations: | ||||||||||||
Net income (loss) for the period | $ | 4,279 | $ | (4,602 | ) | $ | (1,464 | ) | $ | (28,723 | ) | |
Add (deduct) items not affecting cash: | ||||||||||||
Depreciation | 20,245 | 22,396 | 62,821 | 91,282 | ||||||||
Share-based compensation | 186 | 21 | 576 | 690 | ||||||||
Gain on sale of property, plant and equipment | (355 | ) | (1,367 | ) | (3,720 | ) | (2,902 | ) | ||||
Finance costs | 1,675 | 2,106 | 5,254 | 8,063 | ||||||||
Unrealized (gain) loss on foreign currencies translation | (474 | ) | 1,015 | (2,654 | ) | (6,813 | ) | |||||
Current income tax expense (recovery) | (122 | ) | 14 | (577 | ) | 2,307 | ||||||
Deferred income tax expense (recovery) | 938 | (2,045 | ) | (2,586 | ) | (11,271 | ) | |||||
Income taxes (paid) recovered | (119 | ) | 2,272 | 397 | 2,881 | |||||||
Cashflow | 26,253 | 19,810 | 58,047 | 55,514 | ||||||||
Changes in non-cash working capital items: | ||||||||||||
Accounts receivable | (17,132 | ) | 1,599 | (17,291 | ) | 44,698 | ||||||
Inventory | (6,431 | ) | 4,236 | (4,302 | ) | 3,564 | ||||||
Prepaid expenses and deposits | (3,911 | ) | (943 | ) | (1,870 | ) | 5,384 | |||||
Accounts payable and accrued liabilities | 7,984 | (8,398 | ) | 15,975 | (46,590 | ) | ||||||
Deferred revenue | 6,531 | (1,913 | ) | 11,223 | 4,326 | |||||||
Cash provided by operating activities | 13,294 | 14,391 | 61,782 | 66,896 | ||||||||
Investing: | ||||||||||||
Purchase of property, plant and equipment | (4,077 | ) | (2,108 | ) | (17,230 | ) | (12,298 | ) | ||||
Proceeds on disposal of property, plant and equipment | 711 | 2,125 | 9,156 | 5,468 | ||||||||
Changes in non-cash working capital items | (709 | ) | (810 | ) | 342 | (2,808 | ) | |||||
Cash used in investing activities | (4,075 | ) | (793 | ) | (7,732 | ) | (9,638 | ) | ||||
Financing: | ||||||||||||
Advances on long-term debt | - | - | - | 29,796 | ||||||||
Repayment of long-term debt | (7,636 | ) | (5,622 | ) | (36,911 | ) | (63,964 | ) | ||||
Repayment of lease liabilities | (1,088 | ) | (2,090 | ) | (4,710 | ) | (6,354 | ) | ||||
Dividends to shareholders | - | - | - | (2,710 | ) | |||||||
Repurchase of common shares | (2,489 | ) | - | (4,742 | ) | (427 | ) | |||||
Partnership distributions | - | - | - | (125 | ) | |||||||
Interest paid | (1,668 | ) | (2,130 | ) | (5,114 | ) | (8,494 | ) | ||||
Cash used in financing activities | (12,881 | ) | (9,842 | ) | (51,477 | ) | (52,278 | ) | ||||
Change in cash and cash equivalents | (3,662 | ) | 3,756 | 2,573 | 4,980 | |||||||
Cash and cash equivalents, beginning of period | 29,231 | 21,097 | 22,996 | 19,873 | ||||||||
Cash and cash equivalents, end of period | $ | 25,569 | $ | 24,853 | $ | 25,569 | $ | 24,853 | ||||
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
Contract | Rentals and | Compression | Well | Corporate (1) | Total | |||||||||||||
Drilling | Transportation | and Process | Servicing | |||||||||||||||
Services | Services | Services | ||||||||||||||||
Revenue | $ | 43,334 | $ | 12,313 | $ | 38,188 | $ | 25,046 | $ | - | $ | 118,881 | ||||||
Cost of services | 31,089 | 6,288 | 30,475 | 17,403 | - | 85,255 | ||||||||||||
Selling, general and administration | 856 | 1,487 | 2,129 | 1,141 | 1,641 | 7,254 | ||||||||||||
Other income | - | - | - | - | (474 | ) | (474 | ) | ||||||||||
Share-based compensation | - | - | - | - | 186 | 186 | ||||||||||||
Depreciation (2) | 9,038 | 4,917 | 2,353 | 3,658 | 279 | 20,245 | ||||||||||||
Operating income (loss) | 2,351 | (379 | ) | 3,231 | 2,844 | (1,632 | ) | 6,415 | ||||||||||
Gain (loss) on sale of property, plant and equipment | 3 | 100 | 259 | (8 | ) | 1 | 355 | |||||||||||
Finance costs | (1 | ) | (13 | ) | (69 | ) | (5 | ) | (1,587 | ) | (1,675 | ) | ||||||
Net income (loss) before income taxes | 2,353 | (292 | ) | 3,421 | 2,831 | (3,218 | ) | 5,095 | ||||||||||
- | 2,514 | 1,539 | - | - | 4,053 | |||||||||||||
Total assets | 322,629 | 186,198 | 214,807 | 95,598 | 3,666 | 822,898 | ||||||||||||
Total liabilities | 57,587 | 9,908 | 43,168 | 5,244 | 209,635 | 325,542 | ||||||||||||
Capital expenditures | 2,818 | 61 | 910 | 288 | - | 4,077 |
Other | Total | ||||||||||||||
Revenue | $ | 70,832 | $ | 26,492 | $ | 21,557 | $ | - | $ | 118,881 | |||||
Non-current assets (3) | 386,720 | 141,153 | 61,265 | - | 589,138 | ||||||||||
As at and for the three months ended
Contract | Rentals and | Compression | Well | Corporate (1) | Total | |||||||||||||
Drilling | Transportation | and Process | Servicing | |||||||||||||||
Services | Services | Services | ||||||||||||||||
Revenue | $ | 16,178 | $ | 5,939 | $ | 32,282 | $ | 22,841 | $ | - | $ | 77,240 | ||||||
Cost of services | 12,251 | 2,591 | 25,360 | 14,245 | - | 54,447 | ||||||||||||
Selling, general and administration | 1,094 | 1,180 | 1,582 | 1,027 | 808 | 5,691 | ||||||||||||
Other expense | - | - | - | - | 579 | 579 | ||||||||||||
Share-based compensation | - | - | - | - | 21 | 21 | ||||||||||||
Depreciation (2) | 9,950 | 5,809 | 2,451 | 3,994 | 192 | 22,396 | ||||||||||||
Operating income (loss) | (7,117 | ) | (3,641 | ) | 2,889 | 3,575 | (1,600 | ) | (5,894 | ) | ||||||||
Gain on sale of property, plant and equipment | 309 | 376 | 382 | 12 | 288 | 1,367 | ||||||||||||
Finance costs | (51 | ) | (15 | ) | (92 | ) | (7 | ) | (1,941 | ) | (2,106 | ) | ||||||
Net income (loss) before income taxes | (6,859 | ) | (3,280 | ) | 3,179 | 3,580 | (3,253 | ) | (6,633 | ) | ||||||||
- | 2,514 | 1,539 | - | - | 4,053 | |||||||||||||
Total assets | 322,464 | 204,812 | 221,112 | 102,297 | 23,206 | 873,891 | ||||||||||||
Total liabilities | 54,146 | 11,182 | 30,165 | 5,428 | 255,903 | 356,824 | ||||||||||||
Capital expenditures | 521 | 15 | 855 | 717 | - | 2,108 |
Other | Total | ||||||||||||||
Revenue | $ | 34,493 | $ | 18,237 | $ | 24,510 | $ | - | $ | 77,240 | |||||
Non-current assets (3) | 432,917 | 163,896 | 67,090 | - | 663,903 |
(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
(2) Effective
(3) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.
As at and for the nine months ended
Contract | Rentals and | Compression | Well | Corporate (1) | Total | |||||||||||||
Drilling | Transportation | and Process | Servicing | |||||||||||||||
Services | Services | Services | ||||||||||||||||
Revenue | $ | 97,645 | $ | 26,101 | $ | 106,001 | $ | 67,200 | $ | - | $ | 296,947 | ||||||
Cost of services | 72,359 | 13,989 | 85,631 | 47,456 | - | 219,435 | ||||||||||||
Selling, general and administration | 3,201 | 4,015 | 4,753 | 3,470 | 4,423 | 19,862 | ||||||||||||
Other income | - | - | - | - | (2,654 | ) | (2,654 | ) | ||||||||||
Share-based compensation | - | - | - | - | 576 | 576 | ||||||||||||
Depreciation (2) | 28,364 | 15,477 | 7,025 | 11,259 | 696 | 62,821 | ||||||||||||
Operating income (loss) | (6,279 | ) | (7,380 | ) | 8,592 | 5,015 | (3,041 | ) | (3,093 | ) | ||||||||
Gain on sale of property, plant and equipment | 283 | 1,831 | 1,483 | 39 | 84 | 3,720 | ||||||||||||
Finance costs | (10 | ) | (59 | ) | (221 | ) | (16 | ) | (4,948 | ) | (5,254 | ) | ||||||
Net income (loss) before income taxes | (6,006 | ) | (5,608 | ) | 9,854 | 5,038 | (7,905 | ) | (4,627 | ) | ||||||||
- | 2,514 | 1,539 | - | - | 4,053 | |||||||||||||
Total assets | 322,629 | 186,198 | 214,807 | 95,598 | 3,666 | 822,898 | ||||||||||||
Total liabilities | 57,587 | 9,908 | 43,168 | 5,244 | 209,635 | 325,542 | ||||||||||||
Capital expenditures | 12,557 | 341 | 3,491 | 841 | - | 17,230 |
Other | Total | ||||||||||||||
Revenue | $ | 173,125 | $ | 67,695 | $ | 56,125 | $ | 2 | $ | 296,947 | |||||
Non-current assets (3) | 386,720 | 141,153 | 61,265 | - | 589,138 | ||||||||||
As at and for the nine months ended
Contract | Rentals and | Compression | Well | Corporate (1) | Total | |||||||||||||
Drilling | Transportation | and Process | Servicing | |||||||||||||||
Services | Services | Services | ||||||||||||||||
Revenue | $ | 73,373 | $ | 27,554 | $ | 103,238 | $ | 78,113 | $ | - | $ | 282,278 | ||||||
Cost of services | 56,382 | 16,367 | 81,681 | 53,183 | - | 207,613 | ||||||||||||
Selling, general and administration | 4,832 | 4,824 | 5,211 | 3,875 | 3,290 | 22,032 | ||||||||||||
Other income | - | - | - | - | (6,813 | ) | (6,813 | ) | ||||||||||
Share-based compensation | - | - | - | - | 690 | 690 | ||||||||||||
Depreciation(2) | 54,475 | 17,842 | 7,122 | 11,284 | 559 | 91,282 | ||||||||||||
Operating income (loss) | (42,316 | ) | (11,479 | ) | 9,224 | 9,771 | 2,274 | (32,526 | ) | |||||||||
Gain on sale of property, plant and equipment | 1,065 | 912 | 492 | 16 | 417 | 2,902 | ||||||||||||
Finance costs | (129 | ) | (57 | ) | (289 | ) | (25 | ) | (7,563 | ) | (8,063 | ) | ||||||
Net income (loss) before income taxes | (41,380 | ) | (10,624 | ) | 9,427 | 9,762 | (4,872 | ) | (37,687 | ) | ||||||||
- | 2,514 | 1,539 | - | - | 4,053 | |||||||||||||
Total assets | 322,464 | 204,812 | 221,112 | 102,297 | 23,206 | 873,891 | ||||||||||||
Total liabilities | 54,146 | 11,182 | 30,165 | 5,428 | 255,903 | 356,824 | ||||||||||||
Capital expenditures | 2,540 | 857 | 6,934 | 1,955 | 12 | 12,298 |
Other | Total | ||||||||||||||
Revenue | $ | 130,698 | $ | 65,398 | $ | 86,129 | $ | 53 | 282,278 | ||||||
Non-current assets (3) | 432,917 | 163,896 | 67,090 | - | 663,903 |
(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
(2) Effective
(3) 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
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Notes to the Financial Highlights
(1) | EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income, 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. | |
(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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