OKOTOKS, Alta. — Mullen Group has reported its first quarter earnings, showing a 16.7% decline in revenue year-over-year and a 23.5% drop in net income.

However, the company is optimistic business conditions are improving. Mullen posted revenue of $259.9 million in the quarter with net income of $23.7 million. The company chalked the decline in revenue up to several factors, including the lingering effects of the 2008-2009 global financial crisis. It pointed out there’s a time lag associated with the capital investment cycle in the oil and gas industries.

Also, Mullen reported the changing profile of wells drilled in western Canada has resulted in rigs being moved shorter distances, lowering demand for rig relocation services. Mullen also pointed out most recent growth has been in Saskatchewan and Manitoba – areas where the company doesn’t have a strong rig relocation presence.

Nonetheless, the company is encouraged about several positive indicators.

“The operating environment in the first quarter of 2010 although difficult, showed positive signs that the economy has stabilized which is supported by the announcement of several major capital projects,” said Stephen Lockwood, president and co-CEO. “As the quarter progressed activity levels across most of our business units began to improve as capital began to be deployed. It is worth noting that March 2010 was the first month for over a year where on a consolidated basis, our business units experienced an increase in operating income on a year-over-year comparison basis.”

Mullen’s Trucking/Logistics segment saw revenue decline 20.5% to $83.2 million year-over-year in the first quarter, posting an operating income of $13.1 million, off 22.5% year-over-year.