CALGARY, Alta. — Mullen Group reported its third quarter results yesterday, showing declines in both revenue and operating profit due to the slowdown in Western Canadas oil and gas sector and a faltering US economy.
“The decline in both revenue and operating profit during the quarter was directly related to the continued slowdown in natural gas drilling activity in Western Canada and the absence of sustained growth in either the Canadian or the US economies. This combination is proving to be a real challenge to our immediate growth plans, announced Stephen Lockwood, president and co-chief executive officer.
Nonetheless, the company remained profitable during the three-month period ending Sept. 30. The income fund reported consolidated revenue of $261.3 million during the quarter, down 4.4% compared to a year earlier. The oilfield services segment experienced a $10.8 million drop in revenue, thanks to a continued slowdown in drilling activity.
Demand for fluid hauling services was up, the company reported, thanks to development of the oilsands. The trucking/logistics segment was essentially flat during the quarter, generating $108 million compared to $108.5 million during the same time last year. The company blamed the hampered growth on the slowing US economy as well as a rise in the Canadian dollar.
Overall demand for trucking and logistics services in Eastern Canada was weak, the company reported.
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