Cordy Oilfield Services Inc. Reports First Quarter Results

CORDY OILFIELD SERVICES INC. (the "Corporation" or "Cordy") (TSX VENTURE:CKK)
released today its first quarter results for the period ending March 31, 2014.


For the period ended March 31, 2014

Cordy's first quarter of 2014 was impacted by customer delays in obtaining
permits as well as delays in the start of new projects. Cordy's consolidated
revenues decreased by $8.3 million or 22 percent to $29.9 million as compared to
consolidated revenues of $38.2 million in the period ended March 31, 2013. The
period over period decrease in consolidated revenue was largely attributable to
declining revenues experienced in the Heavy Construction segment and
Environmental Services segment as compared to the same period in 2013. This was
somewhat offset by the increase in revenue in the Manufacturing and Supply
segment in the first quarter of 2014 as compared to the same period in 2013.


Effective January 1, 2014, Cordy amalgamated its Pipeline and Facilities segment
into its Heavy Construction segment. As a result, Cordy now operates in three
segments, being Heavy Construction, Environmental Services and Manufacturing and
Supply. The 2013 comparative segmented information for the Heavy Construction
segment has been restated to include the results previously presented as
Pipeline and Facilities. Results for Cordy by segment are as follows:




--  Heavy Construction segment revenues decreased 21 percent and net
    earnings decreased 107 percent in the first quarter of 2014 versus 2013.
    Operations in the oil sands region, pipeline construction and the mining
    sector were slower due to customer delays, partially offset by increased
    activity in the natural gas sector. 
    
--  Environmental Services segment revenues decreased 32 percent and net
    earnings declined 67 percent in the first quarter of 2014 versus 2013
    due to reduced activity in the oil sands region as customer demand
    decreased and projects were delayed. 
    
--  Manufacturing and Supply segment revenues increased 9 percent and net
    earnings increased 200 percent in the first quarter of 2014 versus 2013.
    In 2014, the segment continued to focus on PDC drill-bit sales which
    helped to increase revenues. 



For the period ended March 31, 2014, the Corporation had EBITDAS of $0.8 million
as compared to $5.9 million in the period ended March 31, 2013, which amounts to
a decrease of $5.1 million or 86 percent. By segment, the Corporation's EBITDAS
were as follows:




--  The Heavy Construction segment EBITDAS declined by $2.9 million to $0.5
    million, primarily as a result of decreased customer demand and delayed
    projects in the mining sector and oil sands region. 
    
--  The Environmental Services segment EBITDAS declined by $2.4 million to
    $1.1 million in 2014 versus 2013, due to the loss of a customer and
    project delays in the oil sands region. 
    
--  The Manufacturing and Supply segment had a positive impact on EBITDAS of
    $0.2 million in 2014, an improvement from EBITDAS of $nil in the first
    quarter of 2013. 



The Corporation reported a net loss of million from net earnings of $2.7 million

 $0.7 million for the three months ended March 31, 2014, a decrease of $3.4 for
the three months ended March 31, 2013.




Three month periods ended March 31,                                         
($ millions except share price and per share                         Change 
 amounts)                                            2014     2013      ($) 
----------------------------------------------------------------------------
FINANCIAL RESULTS                                                           
  Revenue                                            29.9     38.2     (8.3)
  EBITDAS(1)                                          0.8      5.9     (5.1)
  Net earnings (loss) and total comprehensive                               
   income (loss)                                     (0.7)     2.7     (3.4)
  Cash flow s generated from (used in) operating                            
   activities                                        (3.4)    (1.1)    (2.3)
----------------------------------------------------------------------------
SHARE INFORMATION                                                           
  Earnings per share ($)                            (0.01)    0.03    (0.04)
----------------------------------------------------------------------------
(1) Earnings before interest, taxes, depreciation, amortization, impairment 
 and share-based payments (see reader advisory)                             
                                                                            
                                                                            
Three month periods ended March 31,                                         
                                                                     Change 
($ millions)                                         2014     2013      ($) 
----------------------------------------------------------------------------
SEGMENT RESULTS                                                             
  Revenue                                                                   
    Heavy Construction(2)                            17.0     21.4     (4.4)
    Environmental Services                            9.1     13.3     (4.2)
    Manufacturing and Supply                          3.8      3.5      0.3 
                                                 ---------------------------
  Total                                              29.9     38.2     (8.3)
                                                                            
  EBITDAS(1)                                                                
    Heavy Construction(2)                             0.5      3.4     (2.9)
    Environmental Services                            1.1      3.5     (2.4)
    Manufacturing and Supply                          0.2        -      0.2 
    Corporate                                        (1.0)    (1.0)       - 
                                                 ---------------------------
  Total                                               0.8      5.9     (5.1)
----------------------------------------------------------------------------
(1) Earnings before interest, taxes, depreciation, amortization, impairment 
and share-based payments (see reader advisory).                             
(2) The 2013 comparative segmented information for the Heavy Construction   
segment has been restated to include the results previously presented as    
Pipeline and Facilities.                                                    



OUTLOOK

The Corporation is dependent, to a degree, on the overall health of western
Canada's oil, natural gas, and mining sectors. The prospects for the oil sands
region are still anticipated to be the primary driver of potential growth for
our Heavy Construction and Environmental Services segments. We anticipate this
growth will be slower in the first half of 2014 until customers begin to fully
ramp-up their projects in the latter part of 2014. Any significant growth will
be dependent upon winning new customers or new projects from existing customers
in 2014. Cordy expects that drilling activity in western Canada will be the
primary driver of business in Cordy's Manufacturing and Supply segment
throughout 2014. Cordy anticipates expanding sales of its PDC drill bits in both
North America and select international locations.


Generally, these sectors have projected reduced capital expenditure budgets for
2014 and have delayed projects. These factors imply that our industry remains
highly competitive with few opportunities to realize pricing gains in 2014.


Complete copies of Cordy's unaudited interim condensed consolidated financial
statements for the quarter ended March 31, 2014 and the associated Management's
Discussion and Analysis are available on our website www.cordy.ca or on SEDAR at
www.sedar.com.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


READER ADVISORY

Effective January 1, 2011, Cordy began reporting its financial results in
accordance with International Financial Reporting Standards (IFRS). Prior-year's
com- parative amounts were changed to reflect results as if Cordy had always
prepared its financial results using IFRS.


This News Release contains certain statements that constitute forward-looking
statements. These statements relate to future events or the Corporation's future
performance. All statements, other than statements of historical fact, that
address activities, events or developments that the Corporation or a third party
ex- pects or anticipates will or may occur in the future, are forward-looking
statements. These include the Corporation's future growth, results of
operations, per- formance and business prospects and opportunities; prevailing
economic conditions; commodity prices; sourcing, pricing and availability of raw
materials, components and parts, equipment, suppliers, facilities and skilled
personnel; dependence on major customers; uncertainties in weather and
temperature affecting the duration of the service periods and the activities
that can be completed; regional competition; and other factors, many of which
are beyond the Corporation's control. These other factors include future prices
of oil and natural gas and oil and natural gas industry activity, including the
effect of changes in commodity prices on oil and natural gas exploration and
development activity, the ability to complete strategic acquisitions and realize
the anticipated benefits of any acquisitions that are completed, the
Corporation's outlook regarding the competitive environment it operates in, and
the assumptions underlying any of the foregoing. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements involve known and
unknown risks, uncertainties and other factors, many of which are beyond the
Corporation's control, including those discussed under "Risks and Uncertainties"
and elsewhere in this News Release, that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements. The
Corporation believes that the expectations reflected in those forward-looking
statements are reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements included in this
News Release should not be unduly relied upon. These statements speak only as of
the date of this News Release. The Corporation does not intend, and does not
assume any obligation, to update these forward- looking statements, whether as a
result of new information, future events or otherwise, except as required under
applicable securities laws. The forward- looking statements contained in this
News Release are expressly qualified by this cautionary statement.


Cordy uses the measures Earnings Before Interest, Taxes, Depreciation,
Amortization and Impairment and Share Based Compensation (EBITDAS) in this news
release. This measure does not have any standardized meaning prescribed by
International Financial Reporting Standards (IFRS). It is, therefore, con-
sidered to be non-IFRS term and may not be comparable to similar measures
presented by other entities. Management of Cordy uses these non-IFRS measures to
improve its ability to compare financial results among reporting periods and to
enhance its understanding of operating performance, liquidity and ability to
generate funds to finance operations. This non-IFRS measure is also provided to
readers as additional information on Cordy's operating performance, liquidity
and ability to generate funds to finance operations. EBITDAS is an approximate
measure of the Cordy's pre-tax operating cash flow and is generally used to
better measure performance and evaluate trends of individual assets. EBITDAS
comprises earnings before deducting interest and other financial charges, income
taxes, depreciation and amortization, net income attributable to non-controlling
interests and preferred share dividends.


FOR FURTHER INFORMATION PLEASE CONTACT: 
For general information:
Cordy Oilfield Services Inc.
David Mullen, Chairman & Chief Executive Officer
403-266-2067
403-237-6278 (FAX)
[e-mail]


For investor relations information:
Cordy Oilfield Services Inc.
David Boomer, CA, CPA, Chief Financial Officer
403-266-2067
403-237-6278 (FAX)
[e-mail]
www.cordy.ca