OKOTOKS, Alta. — Mullen Group saw its net income nearly triple year-over-year in the fourth quarter while its profits on the full year declined 12.9% compared to 2009.
Revenue was up 6.3% in 2010, thanks to improvements in the oilfield services segment as well as the trucking/logistics segment, the company reported. The higher trucking revenue was attributed to acquisitions and increasing fuel surcharges.
Mullen posted Q4 profits of $332 million, a 199% gain from the $11.1 million the company reported in the fourth quarter of 2009.
Mullen Group has noted stronger demand for transportation services in western Canada. Company chairman and CEO Murray Mullen declared Mullen Group is now in “near full recovery mode.”
“The fourth quarter of 2010 continued the trend of strengthening demand for the majority of services provided by Mullen Group’s operating entities,” Mullen said. “This was driven primarily by a robust recovery in western Canada which is benefiting from higher oil pricing as well as the introduction of new drilling technologies. This combination has reenergized oil focused drilling and is now a major contributor to Mullen Group’s growth.”
“Today we are in near full recovery mode, with the lone exception being our business directly tied to drilling activity – in particular rig moving, which will not return to prior activity and profit levels any time soon,” Mullen added. “Overall, however, we expect virtually all 26 operating entities in the Mullen Group to show year over year growth with the highest growth levels in those businesses with close ties to oil sands activity and oil production.”
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