CALGARY, Alta. — Mullen Group Income Fund enjoyed a successful year in 2006, thanks largely to a number of key acquisitions by the company.
Mullen generated consolidated revenues of $1 billion in 2006, compared to $591.7 million the year before. Net income was also up, to the tune of $128.1 million compared to $70 million in 2005. Mullen Group attributes the 83% increase in net income to income generated by new acquisitions made in 2006.
The company also enjoyed modest price and volume increases in its trucking/logistics segment. That helped offset some revenue reductions on the oilfield services side of the business resulting from a decline in drilling activity, the company has reported.
“Two thousand and six was an important year for the Fund, announced Stephen Lockwood, president and Co-CEO. We hit the coveted $1 billion dollars in revenues, improved profitability, paid out $118.1 million in distributions to unitholders and strengthened the balance sheet with an equity offering and a private debt placement. By most standards one would have to conclude that it was a great year. But we are mindful that in spite of all these accomplishments our long-term unitholders have witnessed a significant decline in the value of their investment in Mullen. We believe this is only a temporary set-back and once drilling activity picks up, investors will realize on the value of the investments we made in 2006.
Mullen Group ended the year with a bang. For the three-month period ending Dec. 31, 2006, Mullen generated consolidated revenues of $284 million a 76.7% improvement over the same period a year earlier.
“We are extremely pleased with our overall performance in the fourth quarter particularly in light of the significant decline in drilling activity in Western Canada as compared to last year, said Lockwood. On a percentage basis we experienced a 25% decrease in the number of active drilling rigs this quarter as compared to the same period last year. If drilling activity would have been anywhere close to 2005 levels our Oilfield Services segment would have benefited significantly. Our operating businesses leveraged to capital spending, infrastructure and oilsands development as well as crude hauling and production services performed reasonably well during the quarter as did most of our business units in the Trucking/Logistics segment.
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