OKOTOKS, Alta. — Mullen Group reported net income of $31 million in the first quarter of 09, down 37.8% from $49.8 million over the same quarter last year.
Revenue dropped 12.9% compared to the same quarter of 08, down to $312 million.
The company chalked the decline up to a slowdown experienced by the oilfield services segment, which experienced a “significant drop in demand for core drilling services.”
On the trucking side, new revenue was generated by R.E. Line Trucking as well as the transport division of Essential Energy Services Trust, according to the company. But the trucking/logistics segment still suffered a 9.6% decline in revenue due to the current economic environment and a reduced demand for freight services, particularly in western Canada, the company reported.
“The Fund is relatively pleased with the overall financial performance of its business units in the first quarter, especially considering the severe decline in oil and natural gas drilling activity in western Canada,” announced Stephen Lockwood, president and co-CEO. “It was satisfying to see our overall operating margin improve slightly despite an overall decrease in revenue of $46.1 million on a year over year basis. This ability to hold our operating margin was attributable to the cost control measures which were implemented by our business units in 2008.”
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