Total Energy Services Inc. (“Total Energy” or the “Company”)
(TSX:TOT) announces its consolidated financial results for the
three months ended March 31, 2023.
Financial Highlights ($000’s
except per share data)
|
|
Three months ended March 31 |
|
|
|
2023 |
|
2022 |
Change |
Revenue |
|
$ |
228,724 |
$ |
161,452 |
42 |
% |
Operating income |
|
|
28,020 |
|
3,690 |
659 |
% |
EBITDA (1) |
|
|
48,475 |
|
24,314 |
99 |
% |
Cashflow |
|
|
48,672 |
|
22,551 |
116 |
% |
Net income |
|
|
24,038 |
|
2,467 |
874 |
% |
Attributable to shareholders |
|
|
24,040 |
|
2,472 |
872 |
% |
|
|
|
|
|
|
|
Per Share Data (Diluted) |
|
|
|
|
|
|
EBITDA (1) |
|
$ |
1.15 |
$ |
0.56 |
105 |
% |
Cashflow |
|
$ |
1.16 |
$ |
0.52 |
123 |
% |
|
|
|
|
|
|
|
Attributable to
shareholders: |
|
|
|
|
|
|
Net income |
|
$ |
0.57 |
$ |
0.06 |
850 |
% |
|
|
|
|
|
|
|
Common shares
(000’s)(4) |
|
|
|
|
|
|
Basic |
|
|
41,322 |
|
42,713 |
(3 |
%) |
Diluted |
|
|
42,048 |
|
43,423 |
(3 |
%) |
|
|
|
|
|
|
|
|
|
|
March 31 |
|
December 31 |
|
Financial Position at |
|
|
2023 |
|
2022 |
Change |
Total Assets |
|
$ |
910,408 |
$ |
878,615 |
4 |
% |
Long-Term Debt and
Lease Liabilities (excluding current portion) |
122,714 |
|
127,628 |
(4 |
%) |
Working Capital (2) |
|
|
111,312 |
|
112,154 |
(1 |
%) |
Net Debt (3) |
|
|
11,402 |
|
15,474 |
(26 |
%) |
Shareholders’ Equity |
|
|
534,576 |
|
522,023 |
2 |
% |
Notes 1 through 4 please refer to the Notes to
the Financial Highlights set forth at the end of this release.
Total Energy’s results for the first quarter
ended March 31, 2023 represent record quarterly financial results
that were driven by improved North American industry conditions
compared to the first quarter of 2022 and the deployment of
equipment upgraded pursuant to the Company’s 2022 capital
expenditure program.
Contract Drilling Services
(“CDS”)
|
|
|
Three months ended March 31 |
|
|
|
2023 |
|
|
2022 |
|
Change |
Revenue |
|
$ |
73,483 |
|
$ |
60,062 |
|
22 |
% |
EBITDA (1) |
|
$ |
20,269 |
|
$ |
11,441 |
|
77 |
% |
EBITDA (1) as a % of
revenue |
|
|
28% |
|
|
19% |
|
47 |
% |
Operating days(2) |
|
|
2,869 |
|
|
2,683 |
|
7 |
% |
Canada |
|
|
1,920 |
|
|
1,625 |
|
18 |
% |
United States |
|
|
590 |
|
|
701 |
|
(16 |
%) |
Australia |
|
|
359 |
|
|
357 |
|
- |
|
Revenue per operating day(2),
dollars |
|
$ |
25,622 |
|
$ |
22,386 |
|
14 |
% |
Canada |
|
|
22,306 |
|
|
20,343 |
|
10 |
% |
United States |
|
|
29,107 |
|
|
21,839 |
|
33 |
% |
Australia |
|
|
37,554 |
|
|
32,759 |
|
15 |
% |
Utilization |
|
|
34% |
|
|
31% |
|
10 |
% |
Canada |
|
|
28% |
|
|
23% |
|
22 |
% |
United States |
|
|
50% |
|
|
60% |
|
(17 |
%) |
Australia |
|
|
80% |
|
|
79% |
|
1 |
% |
Rigs, average for period |
|
|
94 |
|
|
95 |
|
(1 |
%) |
Canada |
|
|
76 |
|
|
77 |
|
(1 |
%) |
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.
North American drilling activity continued to
recover during the first quarter of 2023 as compared to 2022,
particularly in Canada. Increased activity and pricing drove a
significant year over year improvement in Canadian first quarter
financial performance. Despite lower utilization, increased day
rates contributed to higher revenue in the United States of America
(the “United States” or the “U.S.”). In Australia, increased day
rates and stable utilization improved first quarter revenue and
operating income on a year over year basis.
Rentals and Transportation Services
(“RTS”)
|
|
|
Three months ended March 31 |
|
|
|
2023 |
|
|
2022 |
|
Change |
Revenue |
|
$ |
24,413 |
|
$ |
15,400 |
|
59 |
% |
EBITDA (1) |
|
$ |
9,650 |
|
$ |
5,593 |
|
73 |
% |
EBITDA (1) as a % of
revenue |
|
|
40% |
|
|
36% |
|
11 |
% |
Revenue per utilized piece of
equipment, dollars |
|
$ |
13,600 |
|
$ |
9,627 |
|
41 |
% |
Pieces of rental
equipment |
|
|
9,455 |
|
|
9,400 |
|
1 |
% |
Canada |
|
|
8,555 |
|
|
8,520 |
|
0 |
% |
United States |
|
|
900 |
|
|
880 |
|
2 |
% |
Rental equipment
utilization |
|
|
19% |
|
|
17% |
|
12 |
% |
Canada |
|
|
16% |
|
|
15% |
|
7 |
% |
United States |
|
|
46% |
|
|
30% |
|
53 |
% |
Heavy trucks |
|
|
70 |
|
|
71 |
|
(1 |
%) |
Canada |
|
|
48 |
|
|
48 |
|
- |
|
United States |
|
|
22 |
|
|
23 |
|
(4 |
%) |
(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 2022 due to higher
equipment utilization and improved pricing. Increased equipment
utilization, improved pricing and this segment’s significant
leverage to higher equipment utilization given its relatively high
fixed cost structure contributed to a year over year increase in
first quarter segment EBITDA and EBITDA margin.
Compression and Process Services
(“CPS”)
|
|
|
Three months ended March 31 |
|
|
|
2023 |
|
|
2022 |
|
Change |
Revenue |
|
$ |
98,118 |
|
$ |
58,565 |
|
68 |
% |
EBITDA (1) |
|
$ |
12,599 |
|
$ |
3,258 |
|
287 |
% |
EBITDA (1) as a % of revenue |
|
|
13% |
|
|
6% |
|
117 |
% |
Horsepower of equipment on rent at period end |
|
|
44,719 |
|
|
29,670 |
|
51 |
% |
Canada |
|
|
19,209 |
|
|
12,825 |
|
50 |
% |
United States |
|
|
25,510 |
|
|
16,845 |
|
51 |
% |
Rental equipment utilization during the period (HP)(2) |
|
|
78% |
|
|
52% |
|
50 |
% |
Canada |
|
|
74% |
|
|
37% |
|
100 |
% |
United States |
|
|
81% |
|
|
74% |
|
9 |
% |
Sales backlog at period end, $ million |
|
$ |
227.4 |
|
$ |
180.7 |
|
26 |
% |
(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, increased equipment overhaul activity and the continued
recovery in utilization of the compression rental fleet. Improved
pricing on fabrication sales, increased overhead absorption due to
higher production levels and higher rental fleet utilization all
contributed to a significant year over year improvement in first
quarter segment EBITDA and EBITDA margin. The fabrication sales
backlog continued to grow during the first quarter of 2023,
increasing by $46.7 million to $227.4 million compared to the
$180.7 million backlog at March 31, 2022 and by $7.9 million, or
4%, from the $219.5 million backlog at December 31, 2022.
Well Servicing (“WS”)
|
|
|
Three months ended March 31 |
|
|
|
2023 |
|
|
2022 |
|
Change |
Revenue |
|
$ |
32,710 |
|
$ |
27,425 |
|
19 |
% |
EBITDA (1) |
|
$ |
8,279 |
|
$ |
6,548 |
|
26 |
% |
EBITDA (1) as a % of
revenue |
|
|
25% |
|
|
24% |
|
4 |
% |
Service hours(2) |
|
|
33,246 |
|
|
30,839 |
|
8 |
% |
Canada |
|
|
17,491 |
|
|
16,449 |
|
6 |
% |
United States |
|
|
6,644 |
|
|
4,155 |
|
60 |
% |
Australia |
|
|
9,111 |
|
|
10,235 |
|
(11 |
%) |
Revenue per service hour(2),
dollars |
|
$ |
984 |
|
$ |
889 |
|
11 |
% |
Canada |
|
|
984 |
|
|
828 |
|
19 |
% |
United States |
|
|
1,003 |
|
|
818 |
|
23 |
% |
Australia |
|
|
970 |
|
|
1,017 |
|
(5 |
%) |
Utilization(3) |
|
|
39% |
|
|
34% |
|
15 |
% |
Canada |
|
|
34% |
|
|
32% |
|
6 |
% |
United States |
|
|
67% |
|
|
42% |
|
60 |
% |
Australia |
|
|
35% |
|
|
39% |
|
(10 |
%) |
Rigs, average for period |
|
|
79 |
|
|
80 |
|
(1 |
%) |
Canada |
|
|
56 |
|
|
57 |
|
(2 |
%) |
United States |
|
|
11 |
|
|
11 |
|
- |
|
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 2023 as compared to 2022 due to improved North
American activity and pricing. Partially offsetting the improved
North American results was weaker Australian results resulting from
lower activity levels and a reduced effective hourly rate due to
relatively higher standby hours as compared to the first quarter of
2022. Contributing to lower Australian activity levels during the
first quarter of 2023 was the removal of one service rig for
required recertifications. This rig is expected to be redeployed
later in 2023.
Corporate
During the first quarter of 2023, Total Energy
was focused on the safe and efficient operation of its business,
the deployment of equipment upgraded pursuant to its 2022 capital
program and the execution of its preliminary 2023 capital
expenditure program. After funding $30.3 million of capital
expenditures and $3.8 million of debt, lease and interest
obligations, Total Energy generated $14.6 million of free cash flow
during the quarter that was directed towards funding working
capital requirements as well as $5.0 million of voluntary debt
reduction, $8.0 million of share repurchases and $2.5 million of
dividends.
Total Energy exited the first quarter of 2023
with $111.3 million of positive working capital, including $28.2
million of cash, and $150 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, 2023 was 5.15%.
Outlook
While continued global economic uncertainty and
a relatively warm winter in the northern hemisphere have
contributed to oil price volatility and lower natural gas prices,
industry conditions generally remain positive. Current indications
are that near term industry activity levels will remain stable on a
seasonally adjusted basis, with the CPS segment’s significant
fabrication backlog providing visibility for that segment for the
remainder of 2023. In this environment, Total Energy remains
focused on the safe and efficient operation of its business, the
disciplined deployment of capital and opportunities to enhance
shareholder value.
On April 12, 2023, Total Energy’s syndicated
revolving credit facility was extended to November 10, 2026. In
order to reduce finance costs, Total Energy requested such facility
be reduced by $50 million to $170 million. With $70 million drawn
on this facility, $100 million of additional credit is currently
available to the Company. In addition, a subsidiary of the Company
maintains a $5.0 million revolving credit facility that remains
undrawn and fully available.
Total Energy’s Board of Directors has approved a
$14.4 million increase to the Company’s 2023 capital expenditure
budget to $66.1 million, of which $30.3 million has been expended
to March 31, 2023. This increase is primarily directed towards
equipment upgrades and recertifications. Included in the increased
capital budget is the recertification and retrofitting of an AC
triple drilling rig that the Company has recently moved to Canada
from the United States. Such rig has been contracted on a take or
pay basis and is expected to commence operations in June 2023.
Total Energy intends to fund the remaining $35.8 million of its
increased 2023 capital expenditure program with cash on hand and
cash flow.
Annual Meeting of
Shareholders
Shareholders and other interested persons are
invited to attend Total Energy’s annual meeting of Shareholders
which will take place on Tuesday, May 16, 2023 at 10:00 am
(Mountain Time) at the Calgary Petroleum Club, 319 – 5th Avenue
S.W., Calgary, Alberta.
Conference Call
At 9:00 a.m. (Mountain Time) on May 12, 2023
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, 2023 by dialing (855) 669-9658 (passcode 0057).
Selected Financial
Information
Selected financial information relating to the
three months ended March 31, 2023 and 2022 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 2022
Annual report.
Consolidated Statements of Financial
Position(in thousands of Canadian dollars)
|
|
|
March 31 |
|
December 31 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
(unaudited) |
|
(audited) |
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
28,228 |
|
|
$ |
34,061 |
|
Accounts receivable |
|
|
|
171,520 |
|
|
|
154,581 |
|
Inventory |
|
|
|
102,417 |
|
|
|
91,614 |
|
Prepaid expenses and deposits |
|
|
|
18,210 |
|
|
|
18,847 |
|
Income taxes receivable |
|
|
|
216 |
|
|
|
496 |
|
Current portion of lease asset |
|
|
|
243 |
|
|
|
378 |
|
|
|
|
|
320,834 |
|
|
|
299,977 |
|
|
|
|
|
|
|
Property, plant and
equipment |
|
|
|
578,451 |
|
|
|
567,515 |
|
Income taxes receivable |
|
|
|
7,070 |
|
|
|
7,070 |
|
Goodwill |
|
|
|
4,053 |
|
|
|
4,053 |
|
|
|
|
$ |
910,408 |
|
|
$ |
878,615 |
|
|
|
|
|
|
|
Liabilities &
Shareholders' Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and accrued liabilities |
|
|
$ |
130,945 |
|
|
$ |
114,274 |
|
Deferred revenue |
|
|
|
68,122 |
|
|
|
63,895 |
|
Dividends payable |
|
|
|
3,242 |
|
|
|
2,490 |
|
Current portion of lease liabilities |
|
|
|
5,210 |
|
|
|
5,173 |
|
Current portion of long-term debt |
|
|
|
2,003 |
|
|
|
1,991 |
|
|
|
|
|
209,522 |
|
|
|
187,823 |
|
|
|
|
|
|
|
Long-term debt |
|
|
|
112,488 |
|
|
|
117,997 |
|
|
|
|
|
|
|
Lease liabilities |
|
|
|
10,226 |
|
|
|
9,631 |
|
|
|
|
|
|
|
Deferred income tax
liability |
|
|
|
43,596 |
|
|
|
41,141 |
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Share capital |
|
|
|
254,975 |
|
|
|
261,109 |
|
Contributed surplus |
|
|
|
3,158 |
|
|
|
3,590 |
|
Accumulated other comprehensive loss |
|
|
|
(17,650 |
) |
|
|
(17,032 |
) |
Non-controlling interest |
|
|
|
550 |
|
|
|
552 |
|
Retained earnings |
|
|
|
293,543 |
|
|
|
273,804 |
|
|
|
|
|
534,576 |
|
|
|
522,023 |
|
|
|
|
|
|
|
|
|
|
$ |
910,408 |
|
|
$ |
878,615 |
|
Consolidated Statements of Comprehensive
Income(in thousands of Canadian dollars except per share
amounts)(unaudited)
|
|
Three months endedMarch 31 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Revenue |
|
|
$ |
228,724 |
|
$ |
161,452 |
|
|
|
|
|
|
Cost of services |
|
|
|
168,933 |
|
|
129,798 |
|
Selling, general and
administration |
|
|
|
11,433 |
|
|
8,786 |
|
Other income |
|
|
|
(6 |
) |
|
(190 |
) |
Share-based compensation |
|
|
|
389 |
|
|
220 |
|
Depreciation |
|
|
|
19,955 |
|
|
19,148 |
|
Operating income |
|
|
|
28,020 |
|
|
3,690 |
|
|
|
|
|
|
Gain on sale of property,
plant and equipment |
|
|
|
500 |
|
|
1,476 |
|
Finance
costs, net |
|
|
|
(1,703 |
) |
|
(1,806 |
) |
Net income before income
taxes |
|
|
|
26,817 |
|
|
3,360 |
|
|
|
|
|
|
Current income tax expense
(recovery) |
|
|
|
324 |
|
|
(463 |
) |
Deferred income tax expense |
|
|
|
2,455 |
|
|
1,356 |
|
Total income tax expense |
|
|
|
2,779 |
|
|
893 |
|
|
|
|
|
|
Net income |
|
|
$ |
24,038 |
|
$ |
2,467 |
|
|
|
|
|
|
Net income (loss)
attributable to: |
|
|
|
|
Shareholders of the Company |
|
|
$ |
24,040 |
|
$ |
2,472 |
|
Non-controlling interest |
|
|
|
(2 |
) |
|
(5 |
) |
|
|
|
|
|
Income per
share |
|
|
|
|
Basic |
|
|
$ |
0.58 |
|
$ |
0.06 |
|
Diluted |
|
|
$ |
0.57 |
|
$ |
0.06 |
|
Condensed Interim Consolidated Statements of
Comprehensive Income (Loss)
|
|
|
Three months endedMarch 31 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Net income for the
period |
|
|
$ |
24,038 |
|
$ |
2,467 |
|
|
|
|
|
|
Unrealized foreign currency
translation |
|
|
|
(618 |
) |
|
97 |
|
|
|
|
|
|
Total other comprehensive income (loss) for the period |
|
|
|
(618 |
) |
|
97 |
|
|
|
|
|
|
Total comprehensive income |
|
|
$ |
23,420 |
|
$ |
2,564 |
|
|
|
|
|
|
Total comprehensive
income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
|
$ |
23,422 |
|
$ |
2,569 |
|
Non-controlling interest |
|
|
|
(2 |
) |
|
(5 |
) |
Consolidated Statements of Cash
Flows(in thousands of Canadian dollars)(unaudited)
|
|
Three months endedMarch 31 |
|
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Cash provided by (used
in): |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
Net income for the period |
|
|
$ |
24,038 |
|
$ |
2,467 |
|
Add (deduct) items not affecting cash: |
|
|
|
|
Depreciation |
|
|
|
19,955 |
|
|
19,148 |
|
Share-based compensation |
|
|
|
389 |
|
|
220 |
|
Gain on sale of property, plant and equipment |
|
|
|
(500 |
) |
|
(1,476 |
) |
Finance costs, net |
|
|
|
1,703 |
|
|
1,806 |
|
Unrealized loss (gain) on foreign currencies translation |
|
|
|
352 |
|
|
(190 |
) |
Current income tax expense (recovery) |
|
|
|
324 |
|
|
(463 |
) |
Deferred income tax expense |
|
|
|
2,455 |
|
|
1,356 |
|
Income taxes paid |
|
|
|
(44 |
) |
|
(317 |
) |
Cashflow |
|
|
|
48,672 |
|
|
22,551 |
|
Changes in non-cash working capital items: |
|
|
|
|
Accounts receivable |
|
|
|
(17,004 |
) |
|
(24,848 |
) |
Inventory |
|
|
|
(10,803 |
) |
|
(6,527 |
) |
Prepaid expenses and deposits |
|
|
|
637 |
|
|
58 |
|
Accounts payable and accrued liabilities |
|
|
|
4,012 |
|
|
16,669 |
|
Deferred revenue |
|
|
|
4,227 |
|
|
37,052 |
|
Cash provided by operating activities |
|
|
|
29,741 |
|
|
44,955 |
|
Investing: |
|
|
|
|
Purchase of property, plant and equipment |
|
|
|
(30,329 |
) |
|
(11,553 |
) |
Proceeds on disposal of property, plant and equipment |
|
|
|
1,303 |
|
|
3,039 |
|
Changes in non-cash working capital items |
|
|
|
12,733 |
|
|
1,343 |
|
Cash used in investing activities |
|
|
|
(16,293 |
) |
|
(7,171 |
) |
Financing: |
|
|
|
|
Repayment of long-term debt |
|
|
|
(5,497 |
) |
|
(20,653 |
) |
Repayment of lease liabilities |
|
|
|
(1,617 |
) |
|
(1,062 |
) |
Dividends to shareholders |
|
|
|
(2,490 |
) |
|
- |
|
Repurchase of common shares |
|
|
|
(8,014 |
) |
|
(3,528 |
) |
Interest paid |
|
|
|
(1,663 |
) |
|
(1,745 |
) |
|
|
|
|
|
Cash used in financing activities |
|
|
|
(19,281 |
) |
|
(26,988 |
) |
|
|
|
|
|
Change in cash and cash equivalents |
|
|
|
(5,833 |
) |
|
10,796 |
|
|
|
|
|
|
Cash
and cash equivalents, beginning of period |
|
|
|
34,061 |
|
|
33,365 |
|
|
|
|
|
|
Cash
and cash equivalents, end of period |
|
|
$ |
28,228 |
|
$ |
44,161 |
|
|
|
|
|
|
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,
2023 (unaudited, in thousands of Canadian dollars)
|
Contract |
Rentals and |
Compression |
Well |
Corporate (1) |
Total |
|
Drilling |
Transportation |
and Process |
Servicing |
|
|
|
Services |
Services |
Services |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
73,483 |
|
$ |
24,413 |
|
$ |
98,118 |
|
$ |
32,710 |
|
$ |
- |
|
$ |
228,724 |
|
|
|
|
|
|
|
|
Cost of
services |
|
50,365 |
|
|
12,903 |
|
|
81,972 |
|
|
23,693 |
|
|
- |
|
|
168,933 |
|
Selling, general and
administration |
|
2,985 |
|
|
2,058 |
|
|
3,577 |
|
|
844 |
|
|
1,969 |
|
|
11,433 |
|
Other
income |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(6 |
) |
|
(6 |
) |
Share-based
compensation |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
389 |
|
|
389 |
|
Depreciation |
|
9,048 |
|
|
4,872 |
|
|
2,623 |
|
|
3,147 |
|
|
265 |
|
|
19,955 |
|
Operating income (loss) |
|
11,085 |
|
|
4,580 |
|
|
9,946 |
|
|
5,026 |
|
|
(2,617 |
) |
|
28,020 |
|
|
|
|
|
|
|
|
Gain on sale of
property, plant and equipment |
|
136 |
|
|
198 |
|
|
30 |
|
|
106 |
|
|
30 |
|
|
500 |
|
Finance costs, net |
|
(15 |
) |
|
(18 |
) |
|
(121 |
) |
|
(16 |
) |
|
(1,533 |
) |
|
(1,703 |
) |
|
|
|
|
|
|
|
Net income (loss) before income taxes |
|
11,206 |
|
|
4,760 |
|
|
9,855 |
|
|
5,116 |
|
|
(4,120 |
) |
|
26,817 |
|
|
|
|
|
|
|
|
Goodwill |
|
- |
|
|
2,514 |
|
|
1,539 |
|
|
- |
|
|
- |
|
|
4,053 |
|
Total
assets |
|
370,833 |
|
|
184,392 |
|
|
272,071 |
|
|
83,330 |
|
|
(218 |
) |
|
910,408 |
|
Total
liabilities |
|
79,568 |
|
|
23,838 |
|
|
124,109 |
|
|
7,632 |
|
|
140,685 |
|
|
375,832 |
|
Capital expenditures |
|
23,824 |
|
|
1,538 |
|
|
2,509 |
|
|
2,458 |
|
|
- |
|
|
30,329 |
|
|
Canada |
United States |
Australia |
Other |
Total |
|
|
|
|
|
|
Revenue |
$ |
75,310 |
|
$ |
128,770 |
|
$ |
24,644 |
|
$ |
- |
|
$ |
228,724 |
|
Non-current assets (2) |
|
386,242 |
|
|
146,475 |
|
|
49,787 |
|
|
- |
|
|
582,504 |
|
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 |
|
(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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