YTD revenue up 33% / Net Income increased 50%
EDMONTON, Nov. 26, 2012 /CNW/ - Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce second quarter financial results for the three ("Q2'13") and six month ("YTD'13") periods ended October 31, 2012.
| Selected Financial Information
Activity levels in Q2'13 continued on the same trajectory as noted in Q1 and resulted in record performance for the quarter as well as the year to date. Revenues for Q2'13 increased by 24% to $10.2M as compared to the same period in the previous year while YTD'13 revenues increased by 33% to $18.3M as compared to the same period last year.
The gross margin percentage remained constant at 30% for Q2'13 and 29% YTD'13. This was in comparison with 32% in Q2'12 and 29% YTD'12.
Net income before tax for Q2'13 increased to $959K, up 12% from Q2'12, while the YTD'13 net income before tax doubled to $1.3M as compared to YTD'12. In the current quarter, the Company recorded a future tax accrual of $241K (no such accrual was exercised in Q2'12). As a result of the tax accrual taken in Q2'13 the net income for the quarter was $719K as compared to $859K reported in Q2'12 while the net income for YTD'13 increased by 50% to $958K ($0.04/share) from the $638K ($0.03 per share) reported in the previous year.
With the completion in September of the previously announced $17 million senior secured financing, the Company's working capital ratio substantially improved going from 1:1 to 2.32:1. As at October 31, 2012, the company had positive working capital of $6.3 million and long-term debt, excluding finance lease obligations, of $8.7 million.
In both Q1 and Q2 of this fiscal year, Dalmac reported record revenues. Focusing on what we do best and stressing the importance of our customer's needs has been the touchstone of our operating philosophy. All our divisions are benefiting from the increased activity supported by firm commodity prices and driven by new technologies that are increasing oil and gas output. With the growing demand for horizontal drilling and multi stage fracturing, the Company anticipates increasing demand for our products and services through 2013 and beyond.
Drilling utilization rates are expected to continue at record levels for the winter drilling season and the forecast for next year is expected to continue on equally as strong. The Petroleum Service Association of Canada ("PSAC") is forecasting 11,400 wells to be drilled in 2013 and First Energy Capital Corporation has pegged that figure at 12,200. In both cased that is up from 11,250 wells drilled in 2012. About 70% of the wells drilled in 2013 will be horizontal wells which are much longer than vertical ones and the total of 22 million meters of drilling depth will be about equal to 2008 when 16,933 wells were drilled. In Alberta, the 2013 forecast for new wells is up 3% to 7,045. It is expected that the oilfield service activity will continue to be just as robust if not more in 2013 as it was in 2012.
Responding to the current surge of oilfield activity and production requirements, Dalmac is in the midst of purchasing about $6.5 million dollars of additional oilfield equipment. The Company is confident that the steps we are taking now will translate into higher revenues and earnings for Dalmac.
Conference Call - A conference call to discuss the results will be held today, November 26th at 1:00 pm EST, 11:00am MST. To participate in the conference please dial, 416-644-3414 local in Toronto, or toll free, 1-800-814-4859 and request the Dalmac Energy Conference.
We seek Safe Harbor.
SOURCE: Dalmac Energy Inc.
For further information:
John Beasley - CFO - Dalmac Energy
Tel: 780-988-8510 Ext. 227
Doren Quinton - QIS Capital