CALGARY, Alberta – August 11, 2025, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its second quarter 2025 financial and operating results. The unaudited condensed interim consolidated financial statements, and the management discussion & analysis (“MD&A”), for the three and six months ended June 30, 2025 will be available on SEDAR+ at www.sedarplus.ca, and on High Arctic’s website at www.haes.ca. All amounts are denominated in thousands of Canadian dollars (“CAD”), unless otherwise indicated.
Mike Maguire, Interim Chief Executive Officer commented:
“High Arctic has maintained its solid start to 2025 with a second quarter performance consistent with the first quarter. We have now operated for twelve months following the spin-out of the PNG Business and demonstrated that the Corporation has the resilience and a solid base business that positions it well to benefit from anticipated increases in upstream energy service activity levels in the western Canadian oil and gas industry.”
In the following, the three months ended June 30, 2025 may be referred to as the “quarter” or “Q2 2025” and the comparative three months ended June 30, 2024 may be referred to as “Q2 2024”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates. Additionally, the six months ended June 30, 2025 maybe referred to as “YTD” or “YTD-2025”. References to other six-month periods ended June 30 may be presented as “YTD-20XX” with XX being the year to which the six-month period ended June 30 commentary relates.
2025 Q2 Highlights
• Revenue from continuing operations of $2,391, a decrease of 6% compared to Q2 2024.
• Achieved an increase in oilfield services operating margin percentage for Q2 2025 of 49.1% compared to 45.5% in Q2 2024.
• Realized adjusted EBITDA from continuing operations of $482 in the quarter, 20% of revenue.
• Maintained operational excellence and safety, as evidenced by the continuation of recordable incident-free work.
• Achieved expected reductions in general and administrative expenses, a reduction of 52% compared to Q2 2024.
• High Arctic’s 42% equity share of Team Snubbing’s net loss for Q2 2025 was $348, lower than the $889 incurred in Q2 2024. The change was primarily attributable to improved profitability in the Alaskan operations, partially offset by reduced results in the Canadian operations.
• Exited Q2 2025 with positive working capital of $3,380, inclusive of cash of $2,428.
2025 YTD Highlights
• Revenue from continuing operations of $4,726, a decrease of 14% compared to YTD-2024.
• Achieved an increase in oilfield services operating margin percentage for YTD-2025 of 51.1% compared to 47.7% for YTD-2024.
• Realized Adjusted EBITDA from continuing operations of $986 for YTD-2025, 21% of revenue.
• Maintained operational excellence and safety, as evidenced by the continuation of recordable incident-free work.
• Achieved expected reductions in general and administrative expenses, a reduction of 56% compared to the YTD-2024 period.
• High Arctic’s share of Team Snubbing’s net loss for YTD-2025 was $336 comparable to a loss of $399 for YTD-2024. The modest change was primarily a result of improved operating activity in Alaska, offset by lower demand in the Canadian operations driven by the deferral of activity by a key customer.