Calgary Alberta, March 21, 2017 – High Arctic Energy Services Inc. (TSX: HWO) – “High Arctic” or the “Corporation” is pleased to announce its 2016 fourth quarter and year end results.
Thomas Alford, High Arctic’s President and CEO stated: “The fourth quarter saw continued positive performance from our drilling operations in Papua New Guinea, as the integration of our recently acquired Canadian production services platform continued. The financial performance of the Corporation in the quarter and over the full year, combined with our strong balance sheet provides us with the ability to pursue additional growth opportunities as we continue to grow High Arctic’s business operations.
2016 marked a year of transition for High Arctic as the Corporation utilized the strength of its PNG business to expand the Corporation’s business operations during an extended period of weakness in the global oilfield services sector and was able to add additional geographic and product line diversification through the completion of the acquisition of Tervita’s Production Services division (the “Tervita Acquisition”) in the third quarter of 2016.
Fourth Quarter 2016:
Revenue in the fourth quarter increased 7% to $62.3 million from $58.0 million in the fourth quarter of 2015. Contribution from the Tervita Acquisition offset lower quarter over quarter contribution from the Corporation’s Drilling Services segment which benefited from high activity levels in the fourth quarter of 2015 versus the fourth quarter of 2016.
Integration of the Tervita’s Production Services Division was largely completed during the quarter, with focus now transitioning to the achieving of operating and business synergies.
Due to reduced activity from the Corporation’s Drilling Services segment in the quarter versus the fourth quarter of 2015, Adjusted EBITDA declined 12% to $18.3 million from $20.8 million in the fourth quarter […]