CALGARY, Alta. — Alberta-based oilfield hauler Aveda Transportation saw its Q2 revenue fall 28.2% year-over-year as depressed oil prices reduced demand for oilfield transportation services.
The revenue drop in Canada was 69.7% while it US operations saw revenue decline 18.7%.
Net income in the second quarter was $5.9 million, thanks largely to one-time items including the sale of equipment acquired when the company took over Hodges Trucking Company. If not for the acquisition of Hodges and the subsequent sale of some of its assets, Aveda reports it would have incurred an operating loss of $4 million in the second quarter.
Aveda’s Canadian revenue was down 60.7% y-o-y during the first half of 2015.
“Amidst the current cyclical downturn in the oil and gas industry, we are continuing to position the company for the future. The transformative acquisition of Hodges will further cement the company as a dominant force in the rig moving industry,” said Kevin Roycraft, president and CEO of Aveda. “We are continuing to optimize our operations and realizing all potential synergy the Hodges acquisition may offer in order to weather the current industry condition and emerge from the current environment stronger and more profitable.”