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COMPETITION WATCH: Producers Oilfield Services releases financial info

CALGARY, Alta. -- Producers Oilfield Services has posted some serious revenue gains, thanks in part to the acquisit...

CALGARY, Alta. — Producers Oilfield Services has posted some serious revenue gains, thanks in part to the acquisition of four oilfield trucking companies.

The company acquired Swanberg Bros. Trucking, H.L. Powell Ltd., Neil Withers Trucking and K&L Green Enterprises within the first quarter of 2005. The company has seen consolidated revenue in the second quarter of this year hit $33.3 million which is an increase of 522 per cent over the same period last year.

Meanwhile consolidated operating income jumped 322 per cent. Still, Producers Oilfield Services recorded a net loss of $3.5 million during the second quarter, which the company attributes to $1.9 million in one-time charges related to the refinancing of the company’s debt as well as the seasonality of its business.

“Our operating performance in the second quarter was as expected, but our overall profitability was impacted by almost $2 million related to the restructuring of our company’s debt which will substantially reduce our interest costs over the next three years,” said Ric Peterson, president and CEO.

The oilfield trucking segment was responsible for $28.7 million in revenues generated in the second quarter, the company reports. The trucking segment was launched in January, 2005 so there are no comparisons to be made with 2004.

“The Company is now poised to expand its business through organic growth while at the same time capitalizing on available synergies within our companies. The closing of the acquisitions of all of the issued and outstanding shares of Swanberg, Powell, Withers and Green will enable the company to leverage itself into the oilfield trucking market and as such we expect an extremely strong demand for our services for the balance of 2005,” added Peterson.

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