Red Deer, Canada – February 19, 2013– High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce that its Board of Directors has approved a monthly dividend payment of $0.01 per share to holders of common shares. The dividend is payable on March 14, 2013, to holders of High Arctic common shares of record at the close of business on February 28, 2013. The ex-dividend date is February 26, 2013. The dividend is designated as an “eligible dividend” for Canadian Income Tax purposes.
High Arctic Reports 2013 First Quarter Adjusted EBITDA of $12.6 Million
Red Deer, Canada – May 14, 2013 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) today announced its operating and financial results for the quarter ended March 31, 2013. First Quarter Highlights The operations in Papua New Guinea (PNG) generated significantly higher revenue in the first quarter which offset the slower activity levels in the Canadian operation Despite increased revenues, adjusted EBITDA decreased 12% to $12.6 million for the three months ended March 31, 2013 from $14.3 million for the same period in 2012 due primarily to a reduction in the Canadian operating margin. Consolidated revenue for the first quarter increased 6% to $44.8 million compared to $42.2 million for the same quarter in 2012. The growth in revenue for the quarter was driven by increased activity in PNG with revenues of $29.9 million compared to $23.5 million for the first three months of 2012 as a result of having a second active drilling rig operating in 2013. In addition, the Corporation continues to see increased revenues derived from its rental fleet with growth year over year of approximately $1.3 million from its rental operations in PNG. Revenue for Canada was $14.9 million for the first three months of 2013, a decrease of $3.8 million (20%) for the same period in 2012. The first quarter saw reduced revenue levels in the core snubbing and nitrogen businesses as both activities were softer with overall industry activity down. The operating margins in Canada were adversely affected by the reduced revenue levels and by competitive pricing conditions primarily in the nitrogen activity. Consolidated operating margins continued to be strong at 33% for the quarter but fell from 39% earned for the three months ended March 31, 2012. The percentage was affected by the higher rig rental costs associated with operating an additional active rig in PNG in 2013 while the lower operating margins in Canada caused the overall reduction of $1.6 million in the operating margin. As a result of its continued strong financial results, High Arctic increased its monthly dividend to $0.0125 per share in March, 2013, a 25% increase from the previous monthly dividends paid. At that monthly rate, the annual dividend will total approximately $7.5 million, which represents an annualized rate of 23% of funds provided from operations during the trailing twelve months ended March 31, 2013. High Arctic continues to maintain a strong balance sheet. At March 31, 2013, the Corporation had $9.6 million of net cash on hand (March 31, 2012 – $6.5 million) and working capital of $40.9 million (March 31, 2012 – $34.5). The Corporation also continues to generate strong cash flows from its operations. For the three months ended March 31, 2013, High Arctic generated $11.2 million (2012- $13.4 million) of funds provided from operations. Selected Comparative Financial Information The following is a summary of selected financial information of the Corporation. All figures are derived from financial information that is prepared or presented in accordance with International Financial Reporting Standards (“IFRS”): Three Months Ended March 31 $ millions (except per share amounts) 2013 2012 Change % Revenue 44.8 42.2 2.6 6 EBITDA(1) 12.4 14.0 (1.6) (11) Adjusted EBITDA(1) 12.6 14.3 (1.7) (12) Operating earnings 9.8 11.7 (1.9) (16) Net earnings 8.4 10.7 (2.3) (21) per share (basic)(2) 0.17 0.23 (0.06) per share (diluted)(2) 0.17 0.22 (0.05) Funds provided from operations(1) 11.2 13.4 (2.2) (16) per share (basic) 0.23 0.29 (0.06) per share (diluted) 0.22 0.28 (0.06) Dividends 1.6 – 1.6 – Capital expenditures 5.9 1.6 4.3 – Working capital 40.9 34.5 6.4 19 Total assets 131.4 105.5 25.9 25 Total non-current financial liabilities 13.7 11.2 2.5 22 Net cash, end of period (1) 9.6 6.5 3.1 48 Shares outstanding at end of period (millions) 49.8 49.6 0.2 – (1) Readers are cautioned that EBITDA, Adjusted EBITDA, Funds provided from operations and net cash do not have standardized meanings prescribed by IFRS – see “Key Financial Measures”. (2) The restricted shares held by a trustee under the Executive and Director Incentive Share Plan are included in the shares outstanding. The number of shares used in calculating the net earnings per share amounts are determined differently as explained in the Financial Statements. Outlook The PNG LNG project is on schedule to deliver first gas towards the end of 2014 and this continues to be the focus of our main customer and their partners in the facility. While the long term outlook is favourable as the associated production becomes an important cash flow stream for our customer, the capital demands of that project affect the capital available for drilling in the near term. As a result, High Arctic returned to a one drilling rig operation at the start of May, 2013 and some of the associated equipment rental fleet is being placed on a standby rate. It is currently forecasted that Rigs 103 and 104 will operate on a leapfrog basis for the balance of 2013, similar to what occurred during the first nine months of 2012. We do not anticipate any drilling opportunities with other operators in 2013. Rig 102 should operate into the fourth quarter at a minimum. We have begun discussions with our main customer on the long term contract renewals and anticipate an early renewal effective as early as July 1, 2013. Some pricing concessions have been offered, particularly on the rental equipment, to reflect the long term nature of the rentals, some of which have now been operating for that customer continuously for more than five years. Other cost reductions, to … Read more