TSX Venture Exchange Symbol "BRY"
EDMONTON, Nov. 29 /CNW/ - Bri-Chem Corp. (the "Company") (TSX Venture
Exchange: BRY) a leading Canadian wholesale distributor of drilling fluids,
products and services, today announced its financial results for the third
quarter ended September 30, 2007. As a result of the reverse take-over by
amalgamation with Gwelan Supply Ltd. effective January 1, 2007, the
comparative financial figures reflect those of consolidated Gwelan Supply Ltd.
operating as a private company and certain of the prior period's figures have
been reclassified to conform to the presentation of the current period
consolidated financial statements. A complete copy of the Company's report is
available on the Internet at www.sedar.com.
Net earnings from operations for the three months ended September 30,
2007 is $1,174,774 or $0.09 fully diluted earnings per share and earnings
before interest, taxes, depreciation and amortization for the same period is
$1,838,294. Consolidated revenues were $18,889,017 during the third quarter of
2007, an increase of 10.5% when compared to the same period last year.
Net earnings from operations for the nine months ended September 30, 2007
is $1,973,488 or $0.16 fully diluted earnings per share and earnings before
interest, taxes, depreciation and amortization for the same period is
$3,488,010. Consolidated revenues were $38,161,114 for the nine months ended
September 30, 2007, a decline of 26.0% when compared to the same period last
During the third quarter the Company acquired Millennium Technologies
Ltd. ("Millennium"), a Western Canadian-based full-service chemical products
wholesaler. The acquisition of Millennium and its operations in Saskatchewan
is expected to provide a more complete territorial coverage for our customers
along with inventory warehouse consolidation.
Drilling activity, based on drilling operating days, was down 22% during
the third quarter and 26% for the nine months of 2007 compared to the same
periods of 2006 as drilling rig utilization rates declined to 39% from 65%.
The downturn in Western Canadian industry activity levels will likely
extend through the remainder of 2007 and into the 2008 winter drilling program
given the continuation of the overhang in natural gas inventory levels that
North America is currently experiencing. The Company will rely on its strong
customer base to support its operations and will continue to focus on
prudently managing operating costs.
Despite the uncertainty, the Company is well positioned to manage the
existing downturn in the sector due to its strong balance sheet, ability to
control costs and its solid platform to seek growth opportunities through
acquisitions in an effort to diversify and broaden the Company's chemical and
drilling fluids market presence.
The Company operates out of its head office located in Acheson, Alberta
and its principal activity is the wholesale/distribution blending and
packaging of drilling fluid supplies for the oil and gas industry. The Company
provides over 100 domestic and foreign products to customers throughout
Alberta, British Columbia and Saskatchewan.
Forward Looking Statements
Certain statements contained in this press release, including statements
which may contain words such as "could", "should", "expect", "anticipate",
"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 Bri-Chem Corp. to be
materially different from any future results, performances or achievements
expressed or implied by such forward looking statements. Such factors include,
but are not limited to, fluctuations in oil and gas activity levels, political
and economic conditions, and the demand for products provided by Bri-Chem
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Don Caron, T: (780) 420-6885, F: (780)