OKOTOKS, Alta. -- Mullen Group has posted record second quarter revenue, generating $320.1 million in the period ending June 30.
Mullen’s second quarter revenue was an increase of $29.3 million, or 10.1%, from the $290.8 million generated in 2011. The company attributed the increase to greater revenue generated by both its oilfield services segment and its trucking/logistics segment.
The oilfield services segment contributed revenue of $188.0 million, an increase of $13.0 million from 2011 despite a $7.7 million decline in revenue associated with the Thin Fine Tailings barge system project, the company reported. Officials said the majority of the increase in revenue was experienced in those operating entities involved in fluid hauling and related production services, which benefited from improved weather conditions in southeastern Saskatchewan compared to the second quarter of last year, strong heavy oil production and continued crude oil drilling. Revenue also increased due to project specific rig relocation services.
Mullen’s trucking/logistics segment contributed revenue of $133.7 million, which was an increase of $15.6 million over the prior year period. The company said the increase was due to the incremental revenue generated by the Hi-Way 9 Group, continued strong demand for transportation services in western Canada and higher fuel surcharge revenue.
"Overall, we are pleased with Mullen Group's performance for the three month period ended June 30. The overall economy in North America remained relatively stable while activity tied to energy and natural resource development in western Canada continued to grow, albeit modestly, which benefited a number of our business units,” said Stephen H. Lockwood, president and co-CEO of Mullen Group.
“During the quarter, Canadian Dewatering L.P. completed the TFT barge system project. While we are disappointed that we were unsuccessful in recouping a portion of the costs associated with the project, which more than doubled in terms of size and scale, Canadian Dewatering L.P. profitably delivered the TFT barge in line with the customer's engineering specifications, timeframes and without any HSE incidents
For the six month period ended June 30, revenue increased by 17.8% to $746.1 million from $633.5 million in the same period last year.