Mullen drops off in first quarter but increases capital budget

CALGARY — Mullen Group Income Fund reported decreased revenue in the first quarter of 2008, but added to the capital expenditure budget to allow for internal growth.

The fund’s revenue of $358.1 million for the first quarter of 2008 was a slight decrease of $7.6 million or 2.1 percent over the same period in 2007.

Mullen attributes the decrease in revenue was mainly attributable to lower revenue in the business units tied to oil and gas drilling activity in western Canada. These business units were impacted by a combination of lower oil and gas drilling activity and a competitive pricing environment.

Mitigating the decrease however, was a strong performance by both the Trucking/Logistics segment, particularly in western Canada, and those business units in the Oilfield Services segment leveraged to the transportation of fluids and the servicing of wells.

The fund has increased its 2008 capital expenditure budget from $40 million to $60 million to allow for additional internal growth in its business units.

“In both northeast British Columbia and Saskatchewan the economic environment is presenting many opportunities that our business units are anxious to pursue,” stated Stephen H. Lockwood, president and co-Chief Executive Officer. “In addition, we are becoming increasingly more optimistic about the prospects for 2009. Therefore, this additional capital will ensure we are well prepared throughout our organization for the activity levels that may arise in 2008.”

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