Calgary, Canada – November 12, 2020 – High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its’ third quarter results today.
Mike Maguire, Chief Executive Officer commented:
“The health and economic environments have remained challenging through this quarter. The action we took in April to restructure and flatten our management reporting lines, remove costs, suspend our dividend and reduce our capex have ensured that we can navigate this period focused on high quality safe and effective operations, maintaining the health of our employees and our stellar QHSE reputation.
We recognize the importance of communication, and maintain open dialogue with our customers, bankers and government while planning for the recovery of the energy sector. On a personal note, it was humbling to speak with and thank the small core of international employees who returned home in October after seven straight months of service in Papua New Guinea.”
Highlights
The following highlights the Corporation’s results for Q3-2020 and YTD-2020:
- Revenue of $18.5 million and $74.2 million for the three and nine months ended September 30, 2020 (2019 – $49.6 million and $142.7 million, respectively) and adjusted EBITDA of $3.4 million and $7.3 million (2019 – $6.3 million and $15.8 million) for the Quarter and YTD, respectively. This included Canadian Emergency Wage Subsidy (“CEWS”) benefits, which provided $4.9 million on a YTD basis (Q3-2020 – $2.8 million) to retain a well-positioned and skilled workforce.
- Achieved several quality and safety milestones:
- • PNG operations reached four years of continuous work Total Recordable Incident Free on August 24, 2020,
- • Canadian operations reached two years Lost Time Injury Free on September 29, 2020,
- • 7.5 years Total Recordable Incident Free in October 2020 at our Cold Lake operations with our largest and longest standing Canadian customer, and
- • High Arctic was once again recognized by the IADC-AC with the 2019 Australasian Safety Statistics Award, the fourth such award in the past five years.
- Focus on working capital management to preserve our cash balances and maintain a strong balance sheet during the current global coronavirus (“COVID-19”) crisis has demonstrated High Arctic’s resilience and positioning for recovery in step with customer opportunities:
- • Strong working capital position of $40.6 million at September 30, 2020, and includes a cash balance of $33.2 million,
- • Subsequent to Q3-2020, renewed our revolving bank loan facility and extended the term 2 years through to August 31, 2023. The maximum availability remains at $45.0 million, of which $10.0 million has been drawn, with similar covenants, margin requirements and conditions.
- The Corporation resumed purchasing shares under its’ Normal Course Issuer Bid (“NCIB”) late in the Quarter.
For the full copy of the release click the link below.