Financial Highlights
($000’s except per share data)
Three months ended | Year ended | |||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||
Revenue | $ | 213,758 | $ | 211,479 | 1 | % | $ | 892,396 | $ | 759,813 | 17 | % | ||
Operating income | 23,510 | 15,605 | 51 | % | 84,622 | 49,343 | 71 | % | ||||||
EBITDA(1) | 45,276 | 35,872 | 26 | % | 168,961 | 131,320 | 29 | % | ||||||
Cashflow | 44,457 | 38,590 | 15 | % | 163,321 | 130,795 | 25 | % | ||||||
Net income (loss) | (7,861 | ) | 12,264 | nm | 41,594 | 37,999 | 9 | % | ||||||
Attributable to shareholders | (7,847 | ) | 12,244 | nm | 41,625 | 38,008 | 10 | % | ||||||
Per Share Data (Diluted) | ||||||||||||||
EBITDA(1) | $ | 1.11 | $ | 0.84 | 32 | % | $ | 4.11 | $ | 3.06 | 34 | % | ||
Cashflow | $ | 1.09 | $ | 0.91 | 20 | % | $ | 3.97 | $ | 3.04 | 31 | % | ||
Attributable to shareholders: | ||||||||||||||
Net income (loss) | $ | (0.19 | ) | $ | 0.29 | nm | $ | 1.01 | $ | 0.88 | 15 | % | ||
Common shares (000’s)(4) | ||||||||||||||
Basic | 39,975 | 41,652 | (4 | %) | 40,409 | 42,216 | (4 | %) | ||||||
Diluted | 40,623 | 42,524 | (4 | %) | 41,147 | 42,980 | (4 | %) | ||||||
Financial Position at | 2023 | 2022 | Change | |||||||||||
Total Assets | $ | 861,658 | $ | 878,615 | (2 | %) | ||||||||
Long-Term Debt and Lease Liabilities (excluding current portion) | 100,834 | 127,628 | (21 | %) | ||||||||||
Working Capital(2) | 123,439 | 112,154 | 10 | % | ||||||||||
Net Debt(3) | - | 15,474 | (100 | %) | ||||||||||
Shareholders’ Equity | 530,758 | 522,023 | 2 | % | ||||||||||
Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.
nm – calculation not meaningful
Total Energy’s results for the fourth quarter and year ended
Contract Drilling Services (“CDS”)
Three months ended | Year ended | |||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||
Revenue | $ | 74,700 | $ | 69,185 | 8 | % | $ | 287,333 | $ | 252,663 | 14 | % | ||||
EBITDA(1) | $ | 23,880 | $ | 17,976 | 33 | % | $ | 75,710 | $ | 60,002 | 26 | % | ||||
EBITDA(1) as a % of revenue | 32 | % | 26 | % | 23 | % | 26 | % | 24 | % | 8 | % | ||||
Operating days(2) | 2,588 | 2,600 | - | 10,311 | 10,485 | (2 | %) | |||||||||
1,890 | 1,588 | 19 | % | 6,913 | 6,263 | 10 | % | |||||||||
356 | 689 | (48 | %) | 2,052 | 2,734 | (25 | %) | |||||||||
342 | 323 | 6 | % | 1,346 | 1,488 | (10 | %) | |||||||||
Revenue per operating day(2), dollars | $ | 28,864 | $ | 26,610 | 8 | % | $ | 27,867 | $ | 24,098 | 16 | % | ||||
27,162 | 24,751 | 10 | % | 26,076 | 22,369 | 17 | % | |||||||||
30,483 | 28,270 | 8 | % | 28,700 | 25,126 | 14 | % | |||||||||
36,582 | 32,207 | 14 | % | 35,791 | 29,484 | 21 | % | |||||||||
Utilization | 30 | % | 30 | % | - | 30 | % | 30 | % | - | ||||||
27 | % | 22 | % | 23 | % | 25 | % | 22 | % | 14 | % | |||||
32 | % | 58 | % | (45 | %) | 47 | % | 58 | % | (19 | %) | |||||
74 | % | 70 | % | 6 | % | 74 | % | 82 | % | (10 | %) | |||||
Rigs, average for period | 94 | 94 | - | 94 | 94 | - | ||||||||||
77 | 76 | 1 | % | 77 | 76 | 1 | % | |||||||||
12 | 13 | (8 | %) | 12 | 13 | (8 | %) | |||||||||
5 | 5 | - | 5 | 5 | - |
(1) | See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. |
(2) | Operating days includes drilling and paid standby days. |
CDS segment revenue during the fourth quarter of 2023 was higher compared with the previous year quarter due to increased revenue per operating day arising from the deployment of upgraded equipment. Negatively impacting utilization in
Rentals and Transportation Services (“RTS”)
Three months ended | Year ended | ||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||
Revenue | $ | 19,544 | $ | 20,043 | (2 | %) | $ | 84,906 | $ | 66,954 | 27 | % | |||||||||
EBITDA(1) | $ | 6,927 | $ | 6,171 | 12 | % | $ | 30,904 | $ | 23,361 | 32 | % | |||||||||
EBITDA(1) as a % of revenue | 35 | % | 31 | % | 13 | % | 36 | % | 35 | % | 3 | % | |||||||||
Revenue per utilized piece of equipment, dollars | $ | 14,139 | $ | 12,483 | 13 | % | $ | 55,041 | $ | 44,376 | 24 | % | |||||||||
Pieces of rental equipment | 7,700 | 9,440 | (18 | %) | 7,700 | 9,440 | (18 | %) | |||||||||||||
6,790 | 8,540 | (20 | %) | 6,790 | 8,540 | (20 | %) | ||||||||||||||
910 | 900 | 1 | % | 910 | 900 | 1 | % | ||||||||||||||
Rental equipment utilization | 18 | % | 18 | % | - | 18 | % | 16 | % | 13 | % | ||||||||||
16 | % | 16 | % | - | 16 | % | 15 | % | 7 | % | |||||||||||
33 | % | 33 | % | - | 35 | % | 29 | % | 21 | % | |||||||||||
Heavy trucks | 67 | 71 | (6 | %) | 67 | 71 | (6 | %) | |||||||||||||
46 | 48 | (4 | %) | 46 | 48 | (4 | %) | ||||||||||||||
21 | 23 | (9 | %) | 21 | 23 | (9 | %) |
(1) | See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. |
Fourth quarter revenue in the RTS segment decreased marginally as compared to the same period in 2022 due to the deferral of certain projects in
Compression and Process Services (“CPS”)
Three months ended | Year ended | ||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||
Revenue | $ | 95,439 | $ | 93,668 | 2 | % | $ | 417,646 | $ | 331,669 | 26 | % | |||||||||
EBITDA(1) | $ | 14,074 | $ | 10,771 | 31 | % | $ | 53,817 | $ | 36,933 | 46 | % | |||||||||
EBITDA(1) as a % of revenue | 15 | % | 11 | % | 36 | % | 13 | % | 11 | % | 18 | % | |||||||||
Horsepower of equipment on rent at period end | 39,496 | 41,243 | (4 | %) | 39,496 | 41,243 | (4 | %) | |||||||||||||
13,856 | 18,768 | (26 | %) | 13,856 | 18,768 | (26 | %) | ||||||||||||||
25,640 | 22,475 | 14 | % | 25,640 | 22,475 | 14 | % | ||||||||||||||
Rental equipment utilization during the period (HP)(2) | 67 | % | 75 | % | (11 | %) | 73 | % | 61 | % | 20 | % | |||||||||
76 | % | 66 | % | 15 | % | 77 | % | 47 | % | 64 | % | ||||||||||
61 | % | 84 | % | (27 | %) | 70 | % | 79 | % | (11 | %) | ||||||||||
Sales backlog at period end, $ million | $ | 162.8 | $ | 219.5 | (26 | %) | $ | 162.8 | $ | 219.5 | (26 | %) |
(1) | See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. |
(2) | Rental equipment utilization is measured on a horsepower basis. |
The year over year increase in the CPS segment’s fourth quarter revenue was due primarily to higher
Well Servicing (“WS”)
Three months ended | Year ended | ||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||
Revenue | $ | 24,075 | $ | 28,583 | (16 | %) | $ | 102,511 | $ | 108,527 | (6 | %) | |||||||||
EBITDA (1) | $ | 3,997 | $ | 6,222 | (36 | %) | $ | 19,833 | $ | 23,395 | (15 | %) | |||||||||
EBITDA (1) as a % of revenue | 17 | % | 22 | % | (23 | %) | 19 | % | 22 | % | (14 | %) | |||||||||
Service hours(2) | 24,631 | 29,566 | (17 | %) | 106,551 | 117,306 | (9 | %) | |||||||||||||
13,293 | 14,460 | (8 | %) | 52,281 | 57,123 | (8 | %) | ||||||||||||||
4,707 | 5,374 | (12 | %) | 23,488 | 19,157 | 23 | % | ||||||||||||||
6,631 | 9,732 | (32 | %) | 30,782 | 41,026 | (25 | %) | ||||||||||||||
Revenue per service hour(2), dollars | $ | 977 | $ | 967 | 1 | % | $ | 962 | $ | 925 | 4 | % | |||||||||
931 | 960 | (3 | %) | 949 | 918 | 3 | % | ||||||||||||||
924 | 955 | (3 | %) | 969 | 899 | 8 | % | ||||||||||||||
1,109 | 983 | 13 | % | 980 | 948 | 3 | % | ||||||||||||||
Utilization(3) | 29 | % | 33 | % | (13 | %) | 31 | % | 32 | % | (3 | %) | |||||||||
26 | % | 28 | % | (7 | %) | 26 | % | 27 | % | (4 | %) | ||||||||||
47 | % | 53 | % | (11 | %) | 59 | % | 48 | % | 23 | % | ||||||||||
25 | % | 37 | % | (32 | %) | 29 | % | 39 | % | (26 | %) | ||||||||||
Rigs, average for period | 79 | 79 | - | 79 | 79 | - | |||||||||||||||
56 | 56 | - | 56 | 56 | - | ||||||||||||||||
11 | 11 | - | 11 | 11 | - | ||||||||||||||||
12 | 12 | - | 12 | 12 | - |
(1) | See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. |
(2) | Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby. |
(3) | The Company reports its service rig utilization for its operational service rigs in |
Fourth quarter Canadian activity in the WS segment was negatively impacted by reduced well abandonment activity following the conclusion of government incentive programs. Segment EBITDA for the fourth quarter decreased as compared to 2022 due to lower activity in all jurisdictions and competitive North American pricing that was partially offset by increased pricing in
Corporate
During the fourth quarter of 2023, Total Energy remained focused on the safe and efficient operation of its business and the execution of its 2023 capital expenditure program in preparation for the upcoming North American winter drilling season.
Total Energy exited the fourth quarter of 2023 with
Outlook
Industry conditions remain relatively stable. Oil and natural gas producers continue to be measured in their drilling and completion programs as they pursue acquisition opportunities and execute shareholder return strategies. While recent North American natural gas spot market price weakness may adversely impact near term natural gas drilling activity, the pending completion of several LNG export facilities is expected to provide relief to the North American natural gas market.
Total Energy’s previously announced 2024 preliminary capital expenditure budget of
Total Energy’s wholly owned subsidiary,
Dividend Increase
The Board of Directors of Total Energy has declared a dividend of
Conference Call
At
Selected Financial Information
Selected financial information relating to the three months and year ended
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(audited)
2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 47,935 | $ | 34,061 | ||||
Accounts receivable | 137,604 | 154,581 | ||||||
Inventory | 98,179 | 91,614 | ||||||
Prepaid expenses and deposits | 16,735 | 18,847 | ||||||
Income taxes receivable | - | 496 | ||||||
Current portion of lease asset | - | 378 | ||||||
300,453 | 299,977 | |||||||
Property, plant and equipment | 557,152 | 567,515 | ||||||
Income taxes receivable | - | 7,070 | ||||||
4,053 | 4,053 | |||||||
$ | 861,658 | $ | 878,615 | |||||
Liabilities & Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 116,794 | $ | 114,274 | ||||
Deferred revenue | 39,321 | 63,895 | ||||||
Income taxes payable | 9,771 | - | ||||||
Dividends payable | 3,198 | 2,490 | ||||||
Current portion of lease liabilities | 5,880 | 5,173 | ||||||
Current portion of long-term debt | 2,050 | 1,991 | ||||||
177,014 | 187,823 | |||||||
Long-term debt | 90,947 | 117,997 | ||||||
Lease liabilities | 9,887 | 9,631 | ||||||
Deferred income tax liability | 53,052 | 41,141 | ||||||
Shareholders' equity: | ||||||||
Share capital | 251,283 | 261,109 | ||||||
Contributed surplus | 4,805 | 3,590 | ||||||
Accumulated other comprehensive loss | (25,506 | ) | (17,032 | ) | ||||
Non-controlling interest | 521 | 552 | ||||||
Retained earnings | 299,655 | 273,804 | ||||||
530,758 | 522,023 | |||||||
$ | 861,658 | $ | 878,615 |
Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
Three months ended | Year ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(unaudited) | (unaudited) | (audited) | (audited) | |||||||||||||
Revenue | $ | 213,758 | $ | 211,479 | $ | 892,396 | $ | 759,813 | ||||||||
Cost of services | 155,976 | 162,291 | 678,246 | 589,809 | ||||||||||||
Selling, general and administration | 13,242 | 11,082 | 46,828 | 39,671 | ||||||||||||
Other expense (income) | (92 | ) | 2,115 | (300 | ) | 1,035 | ||||||||||
Share-based compensation | 729 | 351 | 2,186 | 1,142 | ||||||||||||
Depreciation | 20,393 | 20,035 | 80,814 | 78,813 | ||||||||||||
Operating income | 23,510 | 15,605 | 84,622 | 49,343 | ||||||||||||
Gain on sale of property, plant and equipment | 1,373 | 232 | 3,525 | 3,164 | ||||||||||||
Finance costs, net | (12,235 | ) | (2,094 | ) | (17,425 | ) | (7,374 | ) | ||||||||
Net income before income taxes | 12,648 | 13,743 | 70,722 | 45,133 | ||||||||||||
Current income tax expense | 17,077 | 1,289 | 17,217 | 1,250 | ||||||||||||
Deferred income tax expense | 3,432 | 190 | 11,911 | 5,884 | ||||||||||||
Total income tax expense | 20,509 | 1,479 | 29,128 | 7,134 | ||||||||||||
Net income (loss) | $ | (7,861 | ) | $ | 12,264 | $ | 41,594 | $ | 37,999 | |||||||
Net income (loss) attributable to: | ||||||||||||||||
Shareholders of the Company | $ | (7,847 | ) | $ | 12,244 | $ | 41,625 | $ | 30,008 | |||||||
Non-controlling interest | (14 | ) | 20 | (31 | ) | (9 | ) | |||||||||
Income (loss) per share | ||||||||||||||||
Basic | $ | (0.20 | ) | $ | 0.29 | $ | 1.03 | $ | 0.90 | |||||||
Diluted | $ | (0.19 | ) | $ | 0.29 | $ | 1.01 | $ | 0.88 | |||||||
Consolidated Statements of Comprehensive Income (Loss)
Three months ended | Year ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(unaudited) | (unaudited) | (audited) | (audited) | |||||||||||||
Net income (loss) | $ | (7,861 | ) | $ | 12,264 | $ | 41,594 | $ | 37,999 | |||||||
Foreign currency translation | (1,440 | ) | 965 | (8,474 | ) | 9,672 | ||||||||||
Total other comprehensive income (loss) for the period | (1,440 | ) | 965 | (8,474 | ) | 9,672 | ||||||||||
Total comprehensive income (loss) | $ | (9,301 | ) | $ | 13,229 | $ | 33,120 | $ | 47,671 | |||||||
Total comprehensive income (loss) attributable to: | ||||||||||||||||
Shareholders of the Company | $ | (9,287 | ) | $ | 13,209 | $ | 33,151 | $ | 47,680 | |||||||
Non-controlling interest | (14 | ) | 20 | (31 | ) | (9 | ) |
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
Three months ended | Year ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(unaudited) | (unaudited) | (audited) | (audited) | |||||||||||||
Cash provided by (used in): | ||||||||||||||||
Operations: | ||||||||||||||||
Net income (loss) for the period | $ | (7,861 | ) | $ | 12,264 | $ | 41,594 | $ | 37,999 | |||||||
Add (deduct) items not affecting cash: | ||||||||||||||||
Depreciation | 20,393 | 20,035 | 80,814 | 78,813 | ||||||||||||
Share-based compensation | 729 | 351 | 2,186 | 1,142 | ||||||||||||
Gain on sale of property, plant and equipment | (1,373 | ) | (232 | ) | (3,525 | ) | (3,164 | ) | ||||||||
Finance costs, net | 12,235 | 2,094 | 17,425 | 7,374 | ||||||||||||
Foreign currency translation | (136 | ) | 2,115 | (4,420 | ) | 1,035 | ||||||||||
Current income tax expense | 17,077 | 1,289 | 17,217 | 1,250 | ||||||||||||
Deferred income tax expense | 3,432 | 190 | 11,911 | 5,884 | ||||||||||||
Income taxes recovered (paid) | (39 | ) | 484 | 119 | 462 | |||||||||||
Cashflow | 44,457 | 38,590 | 163,321 | 130,795 | ||||||||||||
Changes in non-cash working capital items: | ||||||||||||||||
Accounts receivable | 25,373 | 9,564 | 16,977 | (64,103 | ) | |||||||||||
Inventory | 3,285 | 1,777 | (6,565 | ) | (1,690 | ) | ||||||||||
Prepaid expenses and deposits | 7,319 | 466 | 2,112 | (9,639 | ) | |||||||||||
Accounts payable and accrued liabilities | (15,805 | ) | (4,543 | ) | (5,325 | ) | 40,417 | |||||||||
Deferred revenue | (14,265 | ) | 8,755 | (24,574 | ) | 47,621 | ||||||||||
Cash provided by operating activities | 50,364 | 54,609 | 145,946 | 143,401 | ||||||||||||
Investing: | ||||||||||||||||
Purchase of property, plant and equipment | (15,611 | ) | (14,713 | ) | (75,242 | ) | (56,735 | ) | ||||||||
Proceeds on disposal of property, plant and equipment | 5,106 | 332 | 11,516 | 6,292 | ||||||||||||
Changes in non-cash working capital items | (5,599 | ) | (1,373 | ) | (3,107 | ) | 8,181 | |||||||||
Cash used in investing activities | (16,104 | ) | (15,754 | ) | (66,833 | ) | (42,262 | ) | ||||||||
Financing: | ||||||||||||||||
Repayment of long-term debt | (10,500 | ) | (28,574 | ) | (26,991 | ) | (70,529 | ) | ||||||||
Repayment of lease liabilities | (1,198 | ) | (1,359 | ) | (5,912 | ) | (4,966 | ) | ||||||||
Dividends to shareholders | (3,198 | ) | (2,517 | ) | (12,142 | ) | (4,999 | ) | ||||||||
Repurchase of common shares | - | (4,491 | ) | (13,587 | ) | (12,638 | ) | |||||||||
Shares issued on exercise of share options | - | 42 | 42 | 158 | ||||||||||||
Interest paid | (1,314 | ) | (2,198 | ) | (6,649 | ) | (7,469 | ) | ||||||||
Cash used in financing activities | (16,210 | ) | (39,097 | ) | (65,239 | ) | (100,443 | ) | ||||||||
Change in cash and cash equivalents | 18,050 | (242 | ) | 13,874 | 696 | |||||||||||
Cash and cash equivalents, beginning of period | 29,885 | 34,303 | 34,061 | 33,365 | ||||||||||||
Cash and cash equivalents, end of period | $ | 47,935 | $ | 34,061 | $ | 47,935 | $ | 34,061 | ||||||||
Segmented Information
The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labor required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labor required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs.
As at and for the three months ended
Contract | Rentals and | Compression | Well | Corporate(1) | Total | ||||||||||||||||||
Drilling | Transportation | and Process | Servicing | ||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||
Revenue | $ | 74,700 | $ | 19,544 | $ | 95,439 | $ | 24,075 | $ | - | $ | 213,758 | |||||||||||
Cost of services | 47,897 | 10,485 | 78,813 | 18,781 | - | 155,976 | |||||||||||||||||
Selling, general and administration | 3,436 | 2,260 | 3,294 | 1,324 | 2,928 | 13,242 | |||||||||||||||||
Other (income) loss | (85 | ) | (35 | ) | 113 | - | (85 | ) | (92 | ) | |||||||||||||
Share-based compensation | - | - | - | - | 729 | 729 | |||||||||||||||||
Depreciation | 9,668 | 5,111 | 2,528 | 2,853 | 233 | 20,393 | |||||||||||||||||
Operating income (loss) | 13,784 | 1,723 | 10,691 | 1,117 | (3,805 | ) | 23,510 | ||||||||||||||||
Gain on sale of property, plant and equipment | 428 | 93 | 855 | 27 | (30 | ) | 1,373 | ||||||||||||||||
Finance costs, net | (21 | ) | (50 | ) | (110 | ) | (23 | ) | (12,031 | ) | (12,235 | ) | |||||||||||
Net income (loss) before income taxes | 14,191 | 1,766 | 11,436 | 1,121 | (15,866 | ) | 12,648 | ||||||||||||||||
- | 2,514 | 1,539 | - | - | 4,053 | ||||||||||||||||||
Total assets | 364,968 | 169,847 | 255,055 | 69,398 | 2,390 | 861,658 | |||||||||||||||||
Total liabilities | 64,810 | 29,502 | 93,980 | 6,383 | 136,225 | 330,900 | |||||||||||||||||
Capital expenditures | 6,282 | 1,446 | 7,669 | 208 | 6 | 15,611 |
Total | ||||||||
Revenue | $ | 116,289 | $ | 77,779 | $ | 19,690 | $ | 213,758 |
Non-current assets(2) | 384,448 | 129,817 | 46,940 | 561,205 |
As at and for the three months ended
Contract | Rentals and | Compression | Well | Corporate(1) | Total | ||||||||||||||||||
Drilling | Transportation | and Process | Servicing | ||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||
Revenue | $ | 69,185 | $ | 20,043 | $ | 93,668 | $ | 28,583 | $ | - | $ | 211,479 | |||||||||||
Cost of services | 49,225 | 12,152 | 79,703 | 21,211 | - | 162,291 | |||||||||||||||||
Selling, general and administration | 2,007 | 1,912 | 3,208 | 1,153 | 2,802 | 11,082 | |||||||||||||||||
Other income | - | - | - | - | 2,115 | 2,115 | |||||||||||||||||
Share-based compensation | - | - | - | - | 351 | 351 | |||||||||||||||||
Depreciation | 9,138 | 4,868 | 2,618 | 3,165 | 246 | 20,035 | |||||||||||||||||
Operating income (loss) | 8,815 | 1,111 | 8,139 | 3,054 | (5,514 | ) | 15,605 | ||||||||||||||||
Gain on sale of property, plant and equipment | 23 | 192 | 14 | 3 | - | 232 | |||||||||||||||||
Finance costs, net | (9 | ) | (16 | ) | (124 | ) | (9 | ) | (1,936 | ) | (2,094 | ) | |||||||||||
Net income (loss) before income taxes | 8,829 | 1,287 | 8,029 | 3,048 | (7,450 | ) | 13,743 | ||||||||||||||||
- | 2,514 | 1,539 | - | - | 4,053 | ||||||||||||||||||
Total assets | 346,870 | 182,095 | 260,019 | 83,628 | 6,003 | 878,615 | |||||||||||||||||
Total liabilities | 62,545 | 20,292 | 122,320 | 6,003 | 145,432 | 356,592 | |||||||||||||||||
Capital expenditures | 6,865 | 3,490 | 3,928 | 400 | 30 | 14,713 |
Total | ||||||||
Revenue | $ | 89,191 | $ | 97,228 | $ | 25,060 | $ | 211,479 |
Non-current assets(2) | 373,637 | 146,886 | 51,045 | 571,568 |
(1) | Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities. |
(2) | Includes property, plant and equipment, lease asset (excluding current portion) and goodwill. |
As at and for the year ended
Contract | Rentals and | Compression | Well | Corporate(1) | Total | ||||||||||||||||||
Drilling | Transportation | and Process | Servicing | ||||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||
Revenue | $ | 287,333 | $ | 84,906 | $ | 417,646 | $ | 102,511 | $ | - | $ | 892,396 | |||||||||||
Cost of services | 201,363 | 46,210 | 352,079 | 78,594 | - | 678,246 | |||||||||||||||||
Selling, general and administration | 10,988 | 8,634 | 13,416 | 4,448 | 9,342 | 46,828 | |||||||||||||||||
Other income | (65 | ) | (35 | ) | 25 | - | (225 | ) | (300 | ) | |||||||||||||
Share-based compensation | - | - | - | - | 2,186 | 2,186 | |||||||||||||||||
Depreciation | 37,775 | 19,731 | 10,350 | 11,944 | 1,014 | 80,814 | |||||||||||||||||
Operating income (loss) | 37,272 | 10,366 | 41,776 | 7,525 | (12,317 | ) | 84,622 | ||||||||||||||||
Gain on sale of property, plant and equipment | 663 | 807 | 1,691 | 364 | - | 3,525 | |||||||||||||||||
Finance costs, net | (65 | ) | (113 | ) | (463 | ) | (74 | ) | (16,710 | ) | (17,425 | ) | |||||||||||
Net income (loss) before income taxes | 37,870 | 11,060 | 43,004 | 7,815 | (29,027 | ) | 70,722 | ||||||||||||||||
- | 2,514 | 1,539 | - | - | 4,053 | ||||||||||||||||||
Total assets | 364,968 | 169,847 | 255,055 | 69,398 | 2,390 | 861,658 | |||||||||||||||||
Total liabilities | 64,810 | 29,502 | 93,980 | 6,383 | 136,225 | 330,900 | |||||||||||||||||
Capital expenditures | 46,810 | 7,223 | 14,452 | 6,516 | 241 | 75,242 |
Total | ||||||||
Revenue | $ | 419,618 | $ | 381,396 | $ | 91,382 | $ | 892,396 |
Non-current assets(2) | 384,448 | 129,817 | 46,940 | 561,205 |
As at and for the year ended
Contract | Rentals and | Compression | Well | Corporate | Total | ||||||||||||||||||
Drilling | Transportation | and Process | Servicing | (1) | |||||||||||||||||||
Services | Services | Services | |||||||||||||||||||||
Revenue | $ | 252,663 | $ | 66,954 | $ | 331,669 | $ | 108,527 | $ | - | $ | 759,813 | |||||||||||
Cost of services | 185,579 | 37,713 | 286,259 | 80,258 | - | 589,809 | |||||||||||||||||
Selling, general and administration | 7,374 | 6,902 | 10,071 | 5,130 | 10,194 | 39,671 | |||||||||||||||||
Other expense | - | - | - | - | 1,035 | 1,035 | |||||||||||||||||
Share-based compensation | - | - | - | - | 1,142 | 1,142 | |||||||||||||||||
Depreciation | 35,785 | 19,518 | 9,725 | 12,832 | 953 | 78,813 | |||||||||||||||||
Operating income (loss) | 23,925 | 2,821 | 25,614 | 10,307 | (13,324 | ) | 49,343 | ||||||||||||||||
Gain on sale of property, plant and equipment | 292 | 1,022 | 1,594 | 256 | - | 3,164 | |||||||||||||||||
Finance costs, net | (23 | ) | (75 | ) | (412 | ) | (26 | ) | (6,838 | ) | (7,374 | ) | |||||||||||
Net income (loss) before income taxes | 24,194 | 3,768 | 26,796 | 10,537 | (20,162 | ) | 45,133 | ||||||||||||||||
- | 2,514 | 1,539 | - | - | 4,053 | ||||||||||||||||||
Total assets | 346,870 | 182,095 | 260,019 | 83,628 | 6,003 | 878,615 | |||||||||||||||||
Total liabilities | 62,545 | 20,292 | 122,320 | 6,003 | 145,432 | 356,592 | |||||||||||||||||
Capital expenditures | 34,835 | 8,508 | 9,490 | 3,792 | 110 | 56,735 |
Total | ||||||||
Revenue | $ | 371,478 | $ | 263,751 | $ | 124,584 | $ | 759,813 |
Non-current assets(2) | 373,637 | 146,886 | 51,045 | 571,568 |
(1) | Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities. |
(2) | Includes property, plant and equipment, lease asset (excluding current portion) and goodwill. |
Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in
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Notes to the Financial Highlights
(1) | EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides 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 without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations. |
(2) | Working capital equals current assets minus current liabilities. |
(3) | Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity. |
(4) | Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 15 to the Company’s 2023 Consolidated Financial Statements. |
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. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.
In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at www.sedar.com) for a discussion of such risks and uncertainties.
The TSX has neither approved nor disapproved of the information contained herein.
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