OKOTOKS, Alta. — Mullen Group continued to grind out a profit in the third quarter, despite continued weakness in the oil and gas industry.
The company’s third quarter profit came in at $7.3 million, down 30.5% year-over-year, on revenues of $304.7 million, down 14.7%.
The drop was due to an $88.8 million decline in revenue for the oilfield services segment, offset in part by a $36.4 million increase in the trucking/logistics segment. Mullen’s trucking/logistics segment achieved its highest level of quarterly revenue ever attained, thanks to incremental revenue added with the acquisition of Gardewine Group and Bernard Transport.
“Our strategy of operating a diversified business model is certainly validated today. In one of the most challenging markets I have witnessed, our operating and financial performance is very respectable. It is from this perspective I am very pleased with our overall performance,” said Mr. Murray K. Mullen, chairman and chief executive officer.
For the nine-month period ending Sept. 30, consolidated revenue was down 14.4% compared to the same period in 2014. Mullen’s net income over this nine-month period was $11 million, down 84.8% over the same period in 2014.
“Acquisitions focused on the trucking and logistics sector of the economy were both timely as well as accretive to our financial results this year. However, there are real challenges associated with the steep declines in crude oil and natural gas prices,” Mullen said. “Drilling activity levels along with other forms of capital investment projects by the oil and natural gas companies are down significantly, negatively affecting many of our operating entities and our people in western Canada. And while I expect the next few quarters to remain challenging for the oil and natural gas service industry, Mullen Group is well prepared. I am not sure our competitors are.”