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Globe Newswire 29-Mar-2018 3:48 PM
EDMONTON, Alberta, March 29, 2018 (GLOBE NEWSWIRE) -- John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX:DAL) is pleased to announce third quarter and six-month results for the reporting period ended January 31, 2018.
FINANCIAL HIGHLIGHTS | Change | Change | ||||||||||
(000's Cdn Dollars, except per share data) | Q3'18 | Q3'17 | % | YTD '18 | YTD '17 | % | ||||||
Revenues | 5,123 | 4,326 | 18 | % | 14,924 | 12,175 | 23 | % | ||||
Gross Profit | 1,297 | 1,276 | 2 | % | 2,940 | 2,858 | 3 | % | ||||
Gross Margin (%) | 25 | % | 29 | % | (14 | )% | 28 | % | 26 | % | 8 | % |
EBITDAS (loss) | 580 | 596 | (3 | )% | 2092 | 1414 | 48 | % | ||||
Net earnings (loss) | (495 | ) | (338 | ) | (47 | )% | (873 | ) | (1,551 | ) | 44 | % |
Earnings (loss) per share - basic | (0.02 | ) | (0.01 | ) | (100 | )% | (0.03 | ) | (0.05 | ) | 40 | % |
Earnings (loss) per share - diluted | (0.02 | ) | (0.01 | ) | (100 | )% | (0.03 | ) | (0.05 | ) | 40 | % |
Business Highlights
Compared to the same period last year:
On December 6 of 2017, the Company refinanced the PNC senior debt facility with Servus Credit Union Ltd., The new facility provides the company with a $5-million revolving overdraft credit facility to assist with daily operating expenses and a $7-million equipment evergreen credit facility to assist with equipment refinancing and acquisitions. Both the overdraft and equipment credit facilities will bear an annual rate of interest equal to the Servus prime lending rate plus 1%, floating, calculated daily and payable monthly in arrears. Pursuant to the terms of the credit agreement, Dalmac will be required to maintain certain financial covenants, which will be measured annually based on the company's year-end statements. As per the conditions of the new credit facility, the new financial covenants include the annual testing of debt to equity ratio, current ratio, and debt service ratio.
Q3'18 Non-recurring and unusual costs | |
Q3'18 | |
PNC Break up fees - Senior lender | 178,565 |
Bank Fees | 5,958 |
Interest expense -deferred legal write-off | 18,648 |
Refinancing loan payouts - interest expense | 4,425 |
Loss on sale of assets | 66,837 |
Tank farm repurposing - CES | 60,460 |
Sub contractor expense | 13,600 |
Total | 348,494 |
Q3'18 extraordinary cost details:
Outlook
The third quarter of fiscal 2018 continues to exhibit signs that the oil and gas industry is in recovery mode. The Canadian market still continues to face challenges specifically focused on market accessibility. We are still labouring under pipeline capacity issues regarding getting our product to market. The limited pipeline capacity is creating domestic natural gas inventory builds caused by access constraints. This has caused some of our key customers to postpone scheduled drilling and workover projects until later in 2018. Based on these developments Dalmac will continue to monitor events relating to these projects and will defer any significant capital expenditures until we are sure our customers increasing their activity levels regarding their ability to get their product to market.
Apart from the aforementioned, management remains confident in its outlook for 2018. We are continuing to maintain a priority emphasis on streamlining and maximizing efficiencies while focusing on a strong and well-structured balance sheet. We have secured various drilling, maintenance and plant certification projects which will tide us over the spring and summer months, The log books for the fall and winter season is already being populated with various drilling and work over projects that are scheduled to come on line, Accordingly, the Company is mindful of improving its utilization levels through service equipment activation and refurbishment programs, which are ongoing, in addition to upgrading and enhancing the capabilities of various other of the Company's assets.
For the balance of this year and into the next it is expected that higher industry activity will result in a higher demand for our services, improved equipment rates and better operating and financial results.
For more information contact:
John Babic - CEO - Dalmac Energy
Tel: 780-988-8510
Email: jbabic@dalmac.ca
Statements throughout this report that are not historical facts may be considered ‘forward looking statements'. Such statements are based on current expectations that involve risks and uncertainties, which could cause actual results to differ from those anticipated. Important factors that can cause anticipated outcomes to differ materially from actual outcomes include the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of petroleum prices, the ability to attract and retain qualified personnel, changes in laws or regulation, currency fluctuations, continued ability to access capital from available facilities and environmental risks. References to "Dalmac', the "Corporation", "Company", "us", "we", and "our" mean Dalmac Energy Inc. and its subsidiary Dalmac Oilfield Services Inc. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. We seek safe harbor.