CALGARY, Alberta, Nov. 18, 2021 (GLOBE NEWSWIRE) – CORDY OILFIELD SERVICES INC. (the “Company” or “Cordy”) (CKK: TSX-V) has released its third quarter results.
ANALYSIS OF CONSOLIDATED OPERATING RESULTS
|Three months ended September 30||Nine months ended September 30|
|(in thousands of dollars)||2021||2020||($) Change||2021||2020||($) Change|
|Environmental services||7 655||3,024||4,631||20,113||12,557||7,556|
|7 814||3,084||4 730||20,416||12 844||7,572|
|Direct operating expenses|
|Environmental services||5,224||2,029||3 195||14,199||9 146||5,053|
|5,290||2,049||3,241||14 365||9 264||5.101|
|General and administrative expenses|
|Environmental services||2 137||726||1 411||5,013||2,900||2,113|
|Gain (loss) on disposal||(90||)||–||(90||)||(90||)||–||(90||)|
|Profit (loss) before tax||1 146||(326||)||1,472||1,617||(31||)||1648|
|Income tax expense||–||–||–||–||–||–|
|Net profit (net loss)||1 146||(326||)||1,472||1,617||(31||)||1648|
The third quarter was Cordy’s strongest quarter since the business realignment in 2015 and contributed significantly to the company’s strongest first nine months during the same period. The good results continued from the second quarter of 2021 and resulted from the same factors: increased activity in the oil and gas sector, revenues generated by the acquisition of Platinum North Resources Ltd. and Cordy’s JV partnership concluded in 2020.
Compared to the third quarter of 2020 when the business faced some of its most difficult challenges to date, including the global spread of the COVID-19 pandemic (“COVID-19”), the third quarter of 2021 has seen an increase in activity levels due to the successful deployment of the COVID-19 vaccine and the lifting of government restrictions. The reopening of economies around the world has caused oil and gas prices to return to economic levels, and general business activity has started to rebound as businesses and customers adjust to new rules of conduct. business in the COVID-19 era.
Third Quarter Financial Summary:
- Revenue for the three and nine months ended September 30, 2021 up 153% for the quarter and 59% for the year:
- revenue of $ 7.8 million for the quarter, an increase of $ 4.7 million, or 153%, from $ 3.1 million in 2020;
- year-to-date revenue of $ 20.4 million, an increase of $ 7.6 million, or 59%, from $ 12.8 million in 2020.
- Operating profit for the three and nine months ended September 30, 2021 up 256% for the quarter and up 78% for the year:
- operating income of $ 2.0 million for the quarter, an increase of $ 1.4 million from $ 0.6 million in 2020;
- Year-to-date operating income of $ 4.3 million, an increase of $ 1.9 million, or 78%, from $ 2.4 million in 2020.
- Net income for the three and nine-month periods ended September 30, 2021 of $ 1.1 million and $ 1.6 million, respectively:
- net income of $ 1.1 million for the quarter, an increase of $ 1.5 million, compared to a net loss of $ 0.3 million in 2020;
- Year-to-date net income of $ 1.6 million, an increase of $ 1.6 million, compared to a net loss of $ 0.03 million in 2020.
The Canada Emergency Wage Subsidy (“CUSS”) for the three and nine months ended September 30, 2021 was $ 0.2 million and $ 1.3 million, respectively, where
- $ 0.2 million was recorded as a reduction of direct operating expenses (“DOE”) for the quarter and $ 1.1 million was recorded as a reduction of DOE for the year; and
- $ 0.02 million was recorded as a reduction in general and administrative (“G&A”) expenses for the quarter and $ 0.2 million was recorded as a reduction in general and administrative expenses for the year.
The Canada Emergency Rent Grant (“CERS”) for the nine-month period ended September 30, 2021 was $ 0.2 million, recorded as a reduction of the DOE.
Cordy’s management is very optimistic about the Company’s near-term outlook as it will benefit from the continued lifting of health restrictions and the positive outlook for drilling activity resulting from higher oil prices. Specifically, as global economies have reopened, commodity prices have rebounded from the severe lows seen at the height of the shutdown, and the western Canadian oilfield industry is on the verge of a downturn. increased drilling activity.
As we move forward into the fourth quarter, we expect our quarterly results to be in line with the prior year and full year results to improve significantly year over year, existing projects continuing to grow and the Company taking full advantage of the acquisition finalized in the first quarter of 2020.
Visibility through 2022 and beyond is still highly variable, but the company is optimistic as its oil and gas customers anticipate increased spending for the remainder of the 2021 and 2022 winter drilling seasons.
For the remainder of 2021 and for the foreseeable future, Cordy will continue to aggressively manage costs, while continuing to focus on the health and safety of its employees, contractors and customers, making sure to do its part to mitigate the spread and limit the impact of COVID-19.
For general and investor relations information, please contact:
Chief Executive Officer
Phone. : 403-262-7667
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ADVICE TO THE READER
This press release contains certain statements that constitute forward-looking statements. These statements relate to future events or the future performance of the Company. All statements, other than statements of historical fact, that deal with activities, events or developments that the Company or a third party expects or anticipates will occur or may occur in the future, are forward-looking statements. These include the future growth of the Company, results of operations, performance and business prospects and opportunities; prevailing economic conditions; commodity prices; the sourcing, pricing and availability of raw materials, components and parts, equipment, suppliers, facilities and qualified personnel; dependence on large customers; weather and temperature uncertainties affecting the length of service periods and the activities that can be performed; regional competition; and other factors, many of which are beyond the control of the Company. These other factors include future oil and gas prices and oil and gas industry activity, including the effect of changes in commodity prices on oil exploration and development activities. and natural gas, the ability to make strategic acquisitions and realize the expected benefits of any acquisitions made, the Company’s outlook for the competitive environment in which it operates and the assumptions underlying all of the foregoing. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “could”, ” will ”,“ plan ”,“ foresee ”,“ potential ”,“ target ”,“ intend ”,“ could ”,“ could ”,“ should ”,“ believe ”and similar expressions. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, including those discussed under “Risks and Uncertainties” and elsewhere in this press release, which may cause such that actual results or events differ materially from those anticipated in these forward-looking statements. The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that such expectations will prove to be correct and the forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. The Company does not intend and assumes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws. applicable movable property. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.