Calgary – Ongoing diversification from service centres in Beaverlodge, Medicine Hat and Slave Lake in Alberta is proving to be profitable for New Energy Services Inc.
The Calgary-based drilling, completions and production services company reported a net profit of $25,243 in its second quarter ending Oct. 31, 2014 compared to a loss of $171, 327 for the same period a year ago.
The company’s fiscal year runs from May 1 to April 30. Revenue also increased 37 per cent to $6.64 million in the second quarter from $4.83 million in the previous year period.
The company attributes its success to the continued build-out of the new diversified service centre in Beaverlodge,
Alberta focused on completions and production operations. The new services operated by its subsidiaries include combo and hydrovac trucks used on the completions
and production sectors as well as quad wagons and tri trailers used in the hauling of frac water, oil and other production fluids.
New West also provides steamer/ boiler units and environmental services to clients in Western Canada. “The corporation has a solid client base and is looking to leverage this client base to offer its new diversified services,” said the company in a Dec. 30 news release.
“Management plans on continuing the diversification growth into the production sector and increasing the plant turnaround and bulk transport service in the future.”
New West’s locations in Slave Lake and Medicine Hat support oil and gas drilling operations.
The company spent $1.5 million on capital expenditures during its second quarter to purchase additional trucks and equipment.
New West also sold approximately five units from the equipment fleet in the quarter which resulted in net proceeds of approximately $300,000. The sold units consisted of older model vacuum and water trucks as well as some underutilized end dump trucks and trailers.
