TSX Venture: "DAL"
EDMONTON, June 20, 2013 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to report that the Company has
exceeded its previous revenue guidance of $40 million for fiscal 2013
ended April 30, 2013. While allowing for the fact that seasonal
revenues have the potential to be impacted by forces outside the
Company's control such as spring break-up and inclement weather, Dalmac
still managed to finish the fiscal year with revenues of approximately
$41 million, a 16% increase from the previous fiscal year, as a result
of continued strong demand, new contracts, a stable recurring revenue
base, and the deployment of new equipment in the fourth quarter. Full
financial results are expected to be released in or before August 2013.
As reported in Q3, the Company recently underwent a significant overhaul
of its equipment inventory to meet more stringent operating parameters
from increasing demand. This led to higher costs in Q3 and Q4. As
previously announced, the new credit facility is expected to improve
the Company's weighted average cost of capital by approximately 2.5% on
an annual basis.
In conjunction with increasing our rack rates by approximately 10%,
management has also recently revamped its run time logistics to
maximise yield and reduce dead head costs. The Company is also
revamping its policies which are designed to improve employee retention
and thereby stave off spiraling labour training costs. It is expected
that the combined effect of the above developments will lead to
increased revenues, lower costs while yielding higher profit margins on
a going forward basis.
Furthermore Dalmac has recently entered into new service agreements for
the provision of additional service work to handle the production flow
stemming from increased directional drilling and fracking technologies.
In summary this translates to more demand for fluid transfer services
and that bodes well for growing revenue on a going forward basis.
Dalmac expects to be profitable in Q4 and is confident that the Company
is well positioned to transition into a record fiscal 2014. Our
continued focus on customer relationships is proving successful as we
have become first call with many of our key customers. Dalmac is
expecting higher than normal utilization rates and with the recently
completed $6.5M investment in new equipment is forecasting revenues to
exceed $45 million in fiscal 2014. With improving commodity prices,
industry activity levels are expected to remain strong over the next
several years and Dalmac is well positioned to capitalize on this
strong demand with solid increases on both its top and bottom line.
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.
SOURCE: Dalmac Energy Inc.
For further information:
Doren Quinton, President
QIS Capital Corp. Ph: (250) 377-1182