OKOTOKS, Alta. — Mullen Group has announced its revenue increased in the third quarter, but profits slipped due in part to “foreign exchange impacts on the Fund’s US$235 million of long-term debt.”
Overall, the company said it was pleased with its performance in a difficult operating environment.
For the three-month period ending Sept. 30, revenue was $352.2 million, a 35% gain over the same period of 2007. For the nine months ending Sept. 30, revenue hit $959.4 million, a 13% gain over the same period in 07.
Net income slipped to $36.2 million for the quarter, a 4.7% decline from 07, and $105.9 million for the nine months ending Sept. 30, a 6.2% drop from 07.
The company attributed its strong results to a number of factors, including: the acquisition of three oilfield services competitors; strong demand for the transportation of fluids and the servicing of oil rigs, particularly in Saskatchewan; strong demand for services in the Alberta oil sands; and gains in the trucking/logistics segment, most notably through the Kleysen Group business unit, the company reported.
“These results indicate the strength, flexibility and growth potential in our business model. We grew through acquisition where we saw value and organically in those areas where there were opportunities, and we did so profitably, all despite the many challenges facing businesses today. Our continued focus on providing value added services to our customers at competitive pricing levels was matched by an attention to controlling costs throughout the organization,” said Stephen Lockwood, president and co-CEO of Mullen Group.
“This is undoubtedly a challenging and fast moving market. Commodity prices have declined significantly, capital and credit was, and remains, very difficult to obtain if you need it, and the Canadian dollar has fallen dramatically against the US dollar…we take comfort from the fact that we have a strong balance sheet, we have a business model that provides us with flexibility to effectively manage our day to day business and positive steps have been taken, such as limiting new hires and capital expenditures, to prepare us for a potential economic slowdown. Nevertheless we are cognizant of today’s challenges and we have been and will continue to take all prudent steps to maintain a strong balance sheet,” added Lockwood.
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