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ENS

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Share Name Share Symbol Market Type
TSXV:ENS TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Enseco Energy Services Corp. Announces Results for the Year Ending March 31, 2011

27/07/2011 1:28am

Marketwired Canada


Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS)
announces its year end financial results for the three and twelve months ended
March 31, 2011.


YEAR OVER YEAR ACHIEVEMENTS



--  Annual revenue increased 106% over the previous year 
--  Annual gross margin increased by $16 million over the previous year 
--  Annual EBITDAS increased from ($2.5 million) to $7.0 million over the
    prior year 
--  Established a Directional Drilling base in Rocky Mountains / North
    Dakota region 
--  North Dakota Production Testing business grew from $5.0 million in
    annual revenues to $7.5 million 
--  Exited the non-resource play business lines including swabbing services 
--  Invested $16 million in capital expenditures over the year 
--  Continued to add capability into both the Directional Drilling and the
    Production Testing divisions 



FINANCIAL AND OPERATING RESULTS



                                 Three months ended                         
                                              March                         
                                                31,    Year ended March 31, 
----------------------------------------------------------------------------
                                    2011       2010       2011         2010 
----------------------------------------------------------------------------
Revenue from continuing                                                     
operations                     $  21,659  $  17,168  $  66,151  $    32,169 
----------------------------------------------------------------------------
                                                                            
Gross margin from continuing                                                
operations                         5,972      2,792     21,341        5,104 
----------------------------------------------------------------------------
                                                                            
EBITDAS from continuing                                                     
operations                         1,819      1,246      7,007       (2,523)
----------------------------------------------------------------------------
                                                                            
Net loss from continuing                                                    
operations                        (1,465)      (738)    (6,196)      (8,220)
 Per common share - basic and                                               
 diluted                       $   (0.00) $   (0.01) $   (0.03) $     (0.12)
----------------------------------------------------------------------------
Net income (loss) from                                                      
discontinued                                                                
operations                             -     (3,477)      (388)      (6,797)
 Per common share - basic and                                               
 diluted                       $   (0.00) $   (0.03) $   (0.00) $     (0.10)
----------------------------------------------------------------------------
                                                                            
Total net income (loss)           (1,465)    (4,215)    (6,584)     (15,017)
 Per common share - basic and                                               
 diluted                       $   (0.00) $   (0.03) $   (0.03) $     (0.22)
----------------------------------------------------------------------------
Cash flow from/(used in)                                                    
continuing                                                                  
operations, before changes in                                               
non-cash                                                                    
working capital items                839        848      3,708       (3,816)
----------------------------------------------------------------------------
Cash flow from/(used in)                                                    
continuing                                                                  
operations, after changes in                                                
non-cash                                                                    
working capital items              2,490     (4,488)     3,062       (8,812)
----------------------------------------------------------------------------



OUTLOOK

Enseco's year end results show the strength in activity in North American
resource plays including the Bakken, Cardium, Montney and Green River. The
results also confirm Enseco's success in its repositioning as a resource play
service company. Revenue has grown considerably, and with strengthened 2011 day
rates, standardized and internal repair capabilities, and strongly reduced
rental requirements, it is expected that margins will continue to grow.


Enseco's two business lines, directional drilling and flowback production
testing, are both in increasing demand as horizontal drilling and longer, more
complex, completions are performed. Continued strength in oil prices has been
favourable as approximately 80% of revenues are generated from oil related
activity.


A wet and cool spring quarter has extended the spring breakup period but it is
expected that clients will be very busy throughout the summer and through the
rest of 2011. Harsher drilling operations resulted in a large amount of
directional drilling equipment out for service and repair over extended periods
of time during the winter quarter. As a result, in May, Enseco opened a MWD lab
in their existing Leduc facility to repair, test and calibrate equipment faster
and with lower cost than previous, when it was outsourced to vendors.


Because of the strong demand in both directional drilling and production testing
services, Enseco has, and is expected to, continue to show stronger day rates
throughout the remainder of calendar 2011.


Longer, more complex, flow back operations are expected to continue to greatly
increase requirements for production testing services. Enseco will be working
closely with their clients to enable a continued ramp up of fleet and activity
as required by their clients.


In the coming year, the Company will continue to search for efficiencies and
cost reductions to increase its gross margins and EBITDAS.


We continue to look forward to increasingly stronger financial results in the
upcoming fiscal year.


ABOUT ENSECO ENERGY SERVICES CORP.

Enseco is a premier supplier of directional drilling and production testing
services operating throughout the Western Canadian Sedimentary Basin and select
markets in the United States, with operations in the Bakken, Cardium, Viking,
Montney and Green River resource plays as well as a corporate and sales office
located in Calgary. Enseco is led by an experienced management team with a focus
on continued value creation through accretive acquisitions and organic growth.


FORWARD LOOKING DISCLAIMER

Certain information and statements contained in this statement constitute
forward-looking information, including, but not limited to: statements
concerning Enseco's future business strategy, marketing and expansion plans;
expectations regarding the growth of Enseco's fleet and equipment through
organic growth and the acquisition of equipment that is complementary to its
existing tools; expectations regarding future rental costs; anticipated declines
in repairs costs and the impact of such declines on the Company's financial
results; anticipated growth in the Company's directional drilling and production
testing businesses; expectations regarding the impact of discontinued operations
on the Company's financial performance; future acquisition plans, expectations
regarding future revenues, cash flow, EBITDAS, cost reductions, rental
reductions, improved efficiencies, profit margins and other financial results;
expectations regarding resource play drilling activity levels and drilling
programs; general industry conditions, expectations regarding future higher
utilization rates and demand for the Company's services; expectations regarding
the benefits to be derived from recent and future acquisitions and the timing
and costs of such acquisitions; expectations regarding staffing levels;
expectations concerning the nature and timing of growth and expansion of the
Company and it's various business divisions; expectations regarding future
interest levels; expectations regarding Enseco's ability to finance its current
operations, capital expenditures, acquisitions, and future growth and to manage
its current debt levels; expectations regarding the Company's ability to obtain
the continued co-operation of the Company's lender; the Company's ability to
raise additional debt or equity; expectations respecting the competitive
position of Enseco's business divisions; expectations concerning the financing
of future business activities and statements as to future economic, industry and
operating conditions, including commodity prices, industry activity levels,
access to capital and capital expenditures, expectations regarding the Company's
IFRS changeover plans and the results therefrom. Although management of the
Company believes that the expectations reflected in such forward looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct. Accordingly, readers should not place undue reliance
upon any of the forward-looking information set out in this MD&A. Readers should
review the cautionary statement respecting forward-looking information that
appears below. All of the forward looking statements of the Company contained in
this MD&A are expressly qualified, in their entirety, by this cautionary
statement.


The information and statements contained in this statement that are not
historical facts are forward-looking statements. Forward-looking statements
(often, but not always, identified by the use of words such as "seek", "plan",
"continue", "estimate", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe", "expect", "may", "anticipate"
or "will" and similar expressions) may include plans, expectations, opinions, or
guidance that are not statements of fact. Forward-looking statements are based
upon the opinions, expectations and estimates of management as at the date the
statements are made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or outcomes to differ materially
from those anticipated or implied by such forward-looking statements. These
factors include, but are not limited to, such things as changes in industry
conditions (including the levels of capital expenditures made by oil and gas
producers and explorers), the credit risk to which the Company is exposed in the
conduct of its business, fluctuations in prevailing commodity prices or currency
and interest rates, the competitive environment to which the various business
divisions are, or may be, exposed in all aspects of their business, the ability
of the Company's various business divisions to access equipment (including
parts) and new technologies and to maintain relationships with key suppliers,
the ability of the Company's various business divisions to attract and maintain
key personnel and other qualified employees, various environmental risks to
which the Company's business divisions are exposed in the conduct of their
operations, inherent risks associated with the conduct of the businesses in
which the Company's business divisions operate, timing and costs associated with
the acquisition of capital equipment, the impact of weather and other seasonal
factors that affect business operations, availability of financial resources or
third-party financing and the impact of new laws or changes in administrative
practices on the part of regulatory authorities. The various risks to which
Enseco is exposed are described in additional detail in the Company's Annual
Information Form under the heading "Risk Factors" which is available on SEDAR at
www.sedar.com.


Forward-looking information respecting the anticipated costs associated with the
purchase of capital equipment are based upon historical prices for various
classes of equipment, expectations relating to the impact of inflation on the
future cost of such equipment and management's views concerning the negotiating
leverage of the Company and its subsidiaries. Forward-looking information
concerning the nature and timing of growth within the various business divisions
is based on the current budget of the Company (which is subject to change),
factors that affected the historical growth of such business divisions, sources
of historic growth opportunities and expectations relating to future economic
and operating conditions. Forward-looking information concerning the future
competitive position of the Company's business divisions is based upon the
current competitive environment in which those business divisions operate,
expectations relating to future economic and operating conditions, current and
announced build programs and other expansion plans of other organizations that
operate in the energy service business. Forward - looking information concerning
the financing of future business activities is based upon the financing sources
on which the Company has historically relied and expectations relating to future
economic and operating conditions. Forward-looking information concerning future
economic and operating conditions is based upon historical economic and
operating conditions, opinions of third-party analysts respecting anticipated
economic and operating conditions.


With respect to forward-looking statements contained in this statement, Enseco
has made assumptions regarding commodity prices and royalty regimes,
availability of skilled labour, timing and amount of capital expenditures,
future foreign exchange rates, interest rates, the impact of increasing
competition, conditions in general economic and financial markets, effects of
regulation by governmental agencies, and future operating costs.


Management has included the above summary of assumptions and risks related to
forward-looking information provided in this statement in order to provide
shareholders with a more complete perspective on Enseco's future operations and
such information may not be appropriate for other purposes. Enseco's actual
results, performance or achievement could differ materially from those expressed
in, or implied by, these forward-looking statements and, accordingly, no
assurance can be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what benefits that
the Enseco will derive there from. Readers are cautioned that the foregoing
lists of factors are not exhaustive. These forward-looking statements are made
as of the date of in this statement and Enseco disclaims any obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise, other than as required by
applicable securities laws.


Operating loss are losses from continuing operations before loss on disposal of
equipment, income taxes, and realized and unrealized foreign exchange losses.
EBITDAS means earnings before interest, taxes, depreciation and amortization,
and stock-based compensation and is equal to earnings before income taxes from
continuing operations plus interest on debt, other charges and interest expense,
depreciation and amortization, stock-based compensation, unrealized foreign
exchange loss, and loss on sale of equipment. Cash flow means cash flows
provided by continuing operations before changes in non-cash working capital
items. Gross margin is calculated as revenues less operating expenses. Operating
losses, EBITDAS, cash flow, and gross margin are not recognized measures under
Canadian generally accepted accounting principles ("GAAP"). Management believes
that in addition to net losses, operating losses, EBITDAS, cash flow, and gross
margin are useful supplemental measures as they provide 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. Readers should be cautioned, however,
that operating losses, EBITDAS, cash flow and gross margin should not be
construed as an alternative to net losses determined in accordance with GAAP as
an indicator of Enseco's performance. Enseco's method of calculating operating
losses, EBITDAS, cash flow and gross margin may differ from other organizations
and, accordingly, operating losses, EBITDAS, cash flow and gross margin may not
be comparable to measures used by other organizations.


1 Year Enseco Energy Services Corp. Chart

1 Year Enseco Energy Services Corp. Chart

1 Month Enseco Energy Services Corp. Chart

1 Month Enseco Energy Services Corp. Chart