OKOTOKS, Alta. – Mullen Group reported record revenue for its trucking/logistics segment in the second quarter, up 19.8% year-over-year to $219.4 million.
Its total revenue was $295.7 million, an increase of 8.1%, but its oilfield services revenue was down $14.1 million. Net income was $13.9 million
Murray Mullen, chairman and chief executive officer, said the company’s 15 trucking business units were able to capitalize on a tightening supply chain and that he feels a turnaround is occurring in the oil and gas industry.
“All in all I was most pleased with the performance of our trucking/logistics segment and this despite a Canadian economy that is barely growing,” Mullen said. “Clearly our oilfield services segment results were once again disappointing, however, I am of the belief this will improve with the acquisitions we have completed along with our expectation that the oil and natural gas industry is poised to increase capital spending and drilling activity in western Canada once again.”
Mullen announced it is increasing its 2018 capital budget by $20 million, to $60 million.
“We want to ensure our business units are prepared for a recovery,” Mullen said. “We will, however, have to remain vigilant because we are starting to see costs escalate with low unemployment, the low Canadian dollar and tariffs, factors that definitely drive higher costs.”
Part of the capital spending will be used to secure allocations of new trucks and trailers, the company says, noting “delivery of such equipment continues to approach historical lead times.”