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CALGARY, Canada – August 3, 2023, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its’ second quarter financial and operating results. The unaudited interim consolidated financial statements, and management discussion & analysis (“MD&A”), for the quarter ended June 30, 2023 will be available on SEDAR at www.sedarplus.ca, and on High Arctic’s website at haes.ca. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated.
Mike Maguire, Chief Executive Officer commented:
“In PNG we have had our first full quarter of drilling activity with Rig 103. In Canada we have closed the divestment of the nitrogen pumping business for a modest gain and have aligned our G&A costs towards our reduced business footprint.
We are working with our advisers to complete the work to reorganize the Corporation and deliver the tax efficient return of cash to shareholders. The proposed spin-off of the Papua New Guinean business addresses the inefficiencies in managing two small businesses with few synergies. The remaining publicly listed company with Canadian assets and tax pools creates a potentially attractive vehicle for future growth.
I look forward to presenting details of the Reorganization to shareholders in the coming months.”
Highlights
The following highlights the Corporations results for Q2-2023:
• Achieved full drilling utilization of PNG Rig 103 during the Quarter, pursuant to a 3-year contract that was renewed in August 2022.
• Generated EBITDA from continuing operations of $3.8 million on revenues of $17.2 million, funds flow from continuing operations of $3.9 million and incurred capital expenditures of $0.7 million.
• Improved liquidity with a working capital balance of $61.8 million, which includes a cash balance of $45.4 million, and long-term debt of $4.0 million, and
• Announced the sale of the Corporation’s Canadian Nitrogen transportation, hauling and pumping services business for cash consideration of $1.35 million.
2023 Strategic Objectives
High Arctic’s 2023 Strategic Objectives build on the platform we created in 2022, and include:
• Safety excellence and quality service delivery,
• Return idled assets in PNG to service,
• Scaling our Canadian business,
• Opportunities for growth and corporate transactions that enhance shareholder value, and
• Examination of the Corporation’s optimal capital and overhead structure.
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