Mullen reports another record quarter

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ALDERSYDE, Alta. — Mullen Transportation has reported record revenues for the three-month period ended Sept. 30 of $100.3 million.

That’s a five per cent increase over the same time last year. The Oilfield Services and Trucking segments of the business saw small increases in revenue for the period.

In the trucking segment the revenue gains were realized due to increased activity in the LTL and bulk hauling businesses, but it was somewhat offset by decreases on the Mullen Trucking Truckload side.

Despite its higher revenues, Mullen experienced a slight decrease in profitability thanks to rising fuel prices and increased repair and maintenance costs. Net income was $7 million for the quarter compared to $7.2 million during the same period last year.

“Our results for the third quarter were impacted by inclement weather which reduced the demand for our oilfield related services, postponed work that was scheduled for this period, and had the added effect of increasing operating costs within our Oilfield Services segment. With surging commodity prices resulting from the uncertainty of global oil supply, we expect the energy sector to continue to deploy capital to their exploration programs in the last quarter of 2004 and into 2005. Already in the fourth quarter we have seen increasing demand in our Oilfield Services segment due to the pent up demand of the oil and gas sector,” said Steve Lockwood, president and Co-CEO. “In terms of the overall economy there appears to be ample evidence that it is expanding at a reasonable pace, which should benefit our Trucking segment. However, we are somewhat cautious on a go forward basis due to the uncertainty surrounding the impact that rising fuel costs will have on the overall economy."

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