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CALGARY, Alberta, Aug. 18, 2021 (GLOBE NEWSWIRE) --
CORDY OILFIELD SERVICES INC. (the “Corporation” or “Cordy”) (CKK: TSX-V) released today its second quarter results.
ANALYSIS OF CONSOLIDATED RESULTS OF OPERATIONS
Three months ended June 30,
Six months ended June 30,
Direct operating expenses
General and administrative expenses
Operating earnings (loss) (1)
Gain (loss) on disposal
Earnings (loss) before tax
Income tax expense
Net earnings (loss)
The second quarter was our strongest Q2 since realigning our business back in 2015 and was a significant contributor to the Company’s strongest first six months over the same period. The success was driven by increased activity in the oil and gas sector, combined with revenue generated from the PNRL acquisition and Cordy’s JV partnership completed in 2020.
Compared to Q2-2020 where the company was faced with some of its toughest challenges to date, most notably, the global spread of the COVID-19 (“COVID-19”) pandemic, the second quarter of 2021 saw an increase in activity levels due to a successful COVID-19 vaccine rollout and the lifting of government restrictions.
The reopening of the economies around the globe has resulted in a return of oil and gas pricing to economical levels, and general business activity has started to slowly rebound as businesses and customers adapt to the new rules of doing business in the COVID-19 era.
Second Quarter Financial Summary:
Revenue for the three and six months ended June 30, 2021 increased by 189% compared to the prior quarter and increased 29% for the year;
total revenue of $6.1 million for the quarter, an increase of $4.0 million, or 189% compared to $2.1 million in 2020;
total revenue of $12.6 million for the first half, an increase of $2.8 million, or 29% compared to $9.8 million in 2020;
Operating earnings for the three and six months ended June 30, 2021 increased by 272% compared to the prior quarter and increased 25% for the year;
total operating earnings of $1.6 million for the quarter compared to $0.4 million in 2020;
total operating earnings of $2.4 million for the first half, an increase of $0.5 million, or 25% compared to $1.9 million in 2020;
Net earnings (loss) for the three and six months ended June 30, 2021 increased on the quarter and for the year;
Net earnings of $0.6 million for the quarter, an increase of $1.2 million, compared to a net loss of ($0.6) million in 2020
net earnings of $0.5 million for the first half, an increase of $0.2 million, or 60% compared to $0.3 million in 2020
The Canadian Emergency Wages Subsidy (“CEWS”) for the three month and six months ended June 30, 2021 were $0.6 million and $1.2 million respectively where
$0.5 million was recognized as reduction to Direct Operation Expenses (“DOE”) for the quarter and $1.0 million was recognized as a reduction to DOE for the year; and
$0.1 million was recognized as reduction to general and administrative (“G&A”) expenses for the quarter and $0.2 million was recognized as a reduction to G&A for the year.
The Canadian Emergency Rent Subsidy (“CERS”) for the six months ended June 30, 2021 were $0.2 million where $0.2 million was recognized as a reduction to DOE.
In terms of Cordy’s business, we are very optimistic on the near-term outlook. The Company will benefit from the continued lifting of health restrictions and the positive outlook for drilling activity resulting from higher oil prices. Specifically, as global economies have re-opened, commodity prices have rebounded from the severe lows experienced during the height of the shut down, and the oilfield industry in Western Canada is poised to see an increase in drilling activity.
As we progress through the third quarter, we anticipate our quarterly and annual results will continue to improve materially on a year over year basis, with existing projects continuing to progress, and the Company realizing full benefits from the acquisition completed in Q1 2020.
Visibility into the fourth quarter and beyond is still highly variable, but the Company is optimistic as its Oil and Gas customers, forecast an increase in spending for the balance of 2021 and 2022 winter drilling season.
Management continues to evaluate its growth opportunities and access to growth capital, while aggressively managing its costs and focussing on health and safety of its employees.
For general and investor relations information, please contact:
Chief Executive Officer
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.
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 expects or anticipates will or may occur in the future, are forward-looking statements. These include the Corporation’s future growth, results of operations, performance 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.