Total Energy Services Inc. Announces 2014 Results

ID: 1343788
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(businesspress24) - CALGARY, ALBERTA -- (Marketwired) -- 03/12/15 -- Total Energy Services Inc. ("Total Energy" or the "Company") (TSX: TOT) announces its consolidated financial results for the three and twelve-month periods ending December 31, 2014.

Financial Highlights

($000''s except per share data)

Total Energy''s results for the three and twelve months ended December 31, 2014 reflect continued growth in the Company''s Compression and Process Services division and moderately higher Western Canadian oil and natural gas drilling and completion activity as compared to 2013. An unanticipated and substantial reduction in the drilling program of a significant customer during the fourth quarter of 2014 negatively impacted Total Energy''s Contract Drilling Services division.

Total Energy''s Contract Drilling Services division achieved 49% utilization during the fourth quarter of 2014, recording 755 operating days (spud to release) with a fleet of 17 rigs, compared to 881 operating days, or 60% utilization, during the fourth quarter of 2013 with a fleet of 16 rigs. Revenue per operating day increased 4% for the fourth quarter of 2014 relative to the prior year comparable period due to higher pricing and the mix of equipment operating. For the twelve months ended December 31, 2014, the Contract Drilling Services division achieved 3,038 operating days (51% utilization), compared to 2,814 operating days (48% utilization) for 2013. The Rentals and Transportation Services division achieved a utilization rate on major rental equipment of 44% during the fourth quarter of 2014 as compared to a 43% utilization rate during the fourth quarter of 2013. For 2014, rental equipment utilization averaged 41% as compared to 38% for 2013. The Rentals and Transportation Services division exited 2014 with approximately 10,000 pieces of rental equipment and 109 heavy trucks as compared to 9,700 rental pieces and 100 heavy trucks at the end of 2013. The Compression and Process Services division generated revenues of $68.6 million for the three months ended December 31, 2014 compared to $39.0 million for the same period in 2013, an increase of 76%. For 2014, revenues increased by 38% to $241.0 million compared to $174.7 million in 2013. The Compression and Process Services division exited 2014 with a $108.0 million backlog of fabrication sales orders as compared to $60.1 million at December 31, 2013. At December 31, 2014, approximately 45,000 horsepower of compression equipment was on rent compared to 43,000 horsepower on rent at December 31, 2013. The gas compression rental fleet operated at an average utilization rate of 89% for the three and twelve month periods ended December 31, 2014, respectively, as compared to 87% and 86% for the same periods in 2013.

During the fourth quarter, Total Energy declared a quarterly dividend of $0.06 per share to shareholders of record on December 31, 2014. This dividend was paid on January 30, 2015.


The precipitous decline in oil prices that began in late 2014 has resulted in substantial announced decreases to 2015 capital expenditure plans by North American oil and natural gas producers. As such, Total Energy expects that 2015 will be a challenging year for energy services providers. The Company has taken steps to right-size operations in response to reduced customer demand, particularly in the Contract Drilling Services and Rentals and Transportation Services divisions, and additional measures to rationalize the Company''s operating cost structure will be taken as future industry conditions may warrant. While the challenging industry conditions are expected to weigh upon the Company''s Compression and Process Services division, a record fabrication backlog at year end provides some measure of support for 2015 activity levels.

Total Energy''s financial condition remains strong with a long-term debt (including convertible debentures) to long-term debt plus equity ratio of 0.15 to 1.0, $82.3 million of positive working capital and no net debt as at December 31, 2014. Total Energy''s $35 million operating facility was recently renewed to June 2017 and is currently fully available and undrawn.

On January 16, 2015, Total Energy announced its preliminary capital expenditure budget for 2015 of $13.6 million. The expenditure of this budget is discretionary and no substantial capital expenditure commitments have been made to date. Total Energy''s strong financial position, prudent dividend policy and minimal capital expenditure commitments positions the Company well to capitalize on any opportunities that may arise during this challenging and uncertain period.


At 2:30 p.m. MST today, Total Energy will conduct a conference call and webcast to discuss its fourth quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. The call is open to Shareholders and all other interested persons. A live webcast of the conference call will be accessible on Total''s website at by selecting "Webcasts". Persons wishing to join the conference call live may do so by calling (800) 355-4959 or (416) 340-2216. 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 March 19, 2015 by dialing (800) 408-3053 (passcode 451323).


Shareholders and other interested persons are invited to attend the annual meeting of Shareholders which will commence at 10:00 a.m. (Calgary time) on Thursday, May 21, 2015 at the Calgary Petroleum Club, 319 - 5th Avenue S.W., Calgary, Alberta.


Selected financial information relating to the three and twelve-month periods ended December 31, 2014 and 2013 is attached to this news release. This information should be read in conjunction with the consolidated financial statements of Total Energy and the attached notes to the consolidated financial statements and management''s discussion and analysis to be issued in due course and reproduced in the Company''s 2014 annual report.

Consolidated Statements of Financial Position

(in thousands of Canadian dollars)

Consolidated Statements of Comprehensive Income

(in thousands of Canadian dollars except per share amounts)

Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)


The Company operates in three main industry segments, which are substantially in one geographic segment. These 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 drilling, completion and production operations and Compression and Process Services, which includes the fabrication, sale, rental and servicing of natural gas compression and process equipment.

As at and for the three months ended December 31, 2014 (unaudited)

As at and for the three months ended December 31, 2013 (unaudited)

As at and for the year ended December 31, 2014 (audited)

As at and for the year ended December 31, 2013 (audited)

Total Energy Services Inc. is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression and process equipment. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.

Notes to Financial Highlights

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. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, the demand for products and services provided by Total Energy, Total Energy''s ability to attract and retain key personnel and other factors. Reference should be made to Total Energy''s most recently filed Annual Information Form and other public disclosures (available at ) for a discussion of such risks and uncertainties.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.


Daniel Halyk
President & Chief Executive Officer
(403) 216-3921

Yuliya Gorbach
Vice-President Finance and Chief Financial Officer
(403) 216-3920

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Date: 03/12/2015 - 10:17
Language: English
News-ID 1343788
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Firma: Total Energy Services Inc.
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