Oilfield services being offered for free as downturn worsens, charges CEO
原始发布日期： 2016-03-10 发布者：李方字变大 字变小
Oilfield services providers are cutting rates to less than cost, renting equipment for nothing and extending credit to customers who aren’t likely to pay to maintain market share, charged the president and chief executive of Total Energy Services Ltd. on Thursday. Dan Halyk vowed his company, which offers contract drilling, rental/transportation and compression equipment services, won’t be drawn into unprofitable activities despite pressure by rivals. “Price competition has been fierce, with some competitors literally offering certain of their equipment and services for free … we cannot and will not compete with free,” he said on a conference call to discuss fourth-quarter results. “Our refusal to pursue unprofitable work and recklessly extend trade credit has undoubtedly had a negative impact on near-term equipment utilization and revenue.” Total said its 18 rigs in Western Canada achieved only 15 per cent utilization in the last three months of 2014, down from 49 per cent in a fleet of 17 in the same period of 2014. Major equipment rentals fell to 17 per cent from 44 per cent and revenue from its compression and process services division fell 47 per cent to $36.5 million. Analyst Dan MacDonald of RBC Dominion Securities said Total missed estimates for earnings adjusted for one-time items, posting EBITDA of $6.5 million, versus his prediction of $9.9 million and consensus of $9.5 million. “Weaker than expected revenues in both rentals/transportation and compression/processing manufacturing were the driver, with consolidated margins coming in about 350 basis points below expectations on lower revenues, weaker pricing,” he wrote in a note to investors. Total posted a net loss of $3 million versus a gain of $13 million in the fourth quarter of 2014, as revenue fell 57 per cent to $52 million. Its shares gained 33 cents to $13.33 on Thursday. Halyk criticized companies who are cannibalizing equipment for spare parts, boasting that all of Total’s idle gear is ready to go back to work with little notice. He said Total has reduced its workforce by 40 per cent in the past year without giving a number. In a regulatory filing last year, it said it employed 1,153 at the end of 2014 — 40 per cent would equate to about 460 people. Total reported it reduced capacity in its compression business in 2015 by about 20 per cent, moving out of two leased facilities it is now trying to sublet. Halyk said the company signed a significant deal recently to provide compression equipment to a client in Australia. Total, which has no debt, confirmed it would continue to pay a dividend. Its $12-million 2016 capital budget includes $3.9 million to buy operating assets of a U.S. oilfield equipment rental company completed effective Jan. 1. Last fall, the company cancelled a $108-million hostile takeover bid for Calgary-based Strad Energy Services Ltd. after the target adopted a poison pill defence. dhealing@calgaryherald.com Twitter.com/HealingSlowly (摘自Calgary Herald) |