OKOTOKS, Alta. — Mullen Group plans to spend $80 million in capital investments, with half of that directed towards the purchase of new trucks, trailer and specialized equipment.
Another $35 million will go towards buying property currently leased by Jay’s Transportation and to complete a rail transload facility in Edmonton, Alta. The remaining $5 million approved by the Board of Directors will be “allocated for contingencies,” Mullen Group announced.
It is forecasting a challenging year for its oilfield services division, due to the decline in commodity prices in the oil and natural gas sectors.
“The recent declines in crude oil pricing will undoubtedly negatively impact the oil and natural gas industry worldwide,” said Murray Mullen, CEO of Mullen Group. “Our Oilfield Services segment will suffer along with our customers who will be forced to adjust to the reality of lower cash flows. As a result I expect 2015 will be a very challenging year for the oil and gas industry in western Canada, and for our organization, particularly in terms of drilling and oil sands coring activity. However, it is important to remember that the oil and gas sector will still generate significant cash flow even at current pricing levels and will most likely continue to invest to maximize production from existing producing wells.”
Mullen is expecting growth in its Trucking/Logistics segment, primarily due to previously announced acquisitions.
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