OKOTOKS, Alta. — Mullen Group saw its first quarter revenue surge 31.9% to $342.7 million compared to Q1 2010 while its profits more than doubled to $48.3 million over the same period.
The company attributed its strong revenue growth to improvements in the oilfield services and trucking/logistics segments.
Higher crude prices drove increased oil sands development while fluid hauling demand was strengthened by increased drilling activity.
The trucking/logistics segment saw revenue grow from acquisitions and increased demand for transportation services in western Canada, the company reported.
“The operating environment in the first quarter of 2011 continued to show positive signs that the Alberta economy, in particular, is gaining momentum with substantial revenue increases as compared to 2010,” said Stephen Lockwood, president and co-CEO of Mullen Group. “Higher commodity prices, particularly for crude oil, have strengthened the demand for the majority of the services provided by Mullen Group. Higher oil prices have also increased the price of diesel fuel substantially. Fuel is one of Mullen Group’s largest operating expenses and this rapid rise negatively impacted operating income as fuel surcharge revenue always lags cost escalation.”
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