CALGARY, Alberta, Oct. 17, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (TSX:TOT) (“Total Energy” or the “Company”) announced today that it has filed a Notice with the Toronto Stock Exchange (the “TSX”) to undertake a normal course issuer bid that will expire on October 18, 2024. Total Energy has been informed that the TSX has accepted its notice to make the normal course issuer bid. All purchases of common shares (the “Shares”) will be effected through the facilities of the TSX and one or more of the Canadian alternative trading systems and all Shares purchased will be cancelled by the Company.
As of today, there are 39,975,000 Shares issued and outstanding. In connection with the normal course issuer bid, which will commence on October 19, 2023, Total Energy may purchase up to 1,998,750 Shares, being 5% of the total number of outstanding Shares, during the period from October 19, 2023 to October 18, 2024, subject to a maximum daily purchase limit of 9,253 Shares based on an average daily trading volume for the last six calendar months of 37,014 Shares.
On October 17, 2022, Total Energy announced its intention to undertake a normal course issuer bid, which remained in effect during the 12-month period ending on October 18, 2023. Under that normal course issuer bid Total Energy purchased a total of 2,090,089 Shares at an average price of $8.50 per Share.
Capital stewardship remains a core value at Total Energy. Since its inception, Total Energy has returned approximately $290 million to its owners through dividends, distributions and share buybacks, including $5.89 per share in dividends and distributions. In the context of current market conditions, Total Energy believes that the repurchase of Shares is an attractive investment opportunity that will benefit the remaining shareholders of Total Energy by increasing their proportionate equity investment in the Company.
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol “TOT”.
For further information, please contact Daniel K. Halyk, President and CEO at (403) 216-3921 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
CALGARY, Alberta, Oct. 03, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy”) (TSX:TOT) will conduct a conference call and webcast following the release of its financial results for the three months ended September 30, 2023. The financial results will be released prior to the conference call. Daniel Halyk, President and CEO will host the call.
Open to:
Shareholders and other interested persons
Date:
November 10, 2023
Time:
9:00 a.m. (Mountain Time)
Call:
(800) 319-4610 or (416) 915-3239
A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”.
Shortly after the live webcast, an archived version will be available on Total Energy’s website. A recording of the conference call will also be available until December 10, 2023, by dialing (855) 669-9658, passcode 0461.
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol “TOT”.
For further information, please contact Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, Sept. 01, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy”) (TSX:TOT) announces that its Board of Directors has declared a quarterly dividend of $0.08 (Cdn.) per common share for the quarter ending September 30, 2023 on Total Energy’s outstanding common shares. The dividend is payable on October 16, 2023, to shareholders of record at the close of business on September 29, 2023. The ex-dividend date is September 28, 2023.
Unless otherwise indicated, all dividends paid by Total Energy are “eligible dividends” within the meaning of subsection 89(1) of the Income Tax Act (Canada).
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Yuliya Gorbach, Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, Aug. 10, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three and six months ended June 30, 2023.
Financial Highlights
($000’s except per share data)
Three months ended June 30
Six months ended June 30
2023
2022
Change
2023
2022
Change
Revenue
$
208,845
$
179,204
17
%
$
446,622
$
340,656
31
%
Operating income
9,401
8,426
12
%
37,421
12,116
209
%
EBITDA (1)
30,255
28,799
5
%
78,730
53,113
48
%
Cashflow
29,408
28,576
3
%
78,080
51,127
53
%
Net income
6,180
6,105
1
%
30,218
8,572
253
%
Attributable to shareholders
6,201
6,113
1
%
30,241
8,585
252
%
Per Share Data (Diluted)
EBITDA (1)
$
0.74
$
0.67
10
%
$
1.89
$
1.23
54
%
Cashflow
$
0.72
$
0.66
9
%
$
1.88
$
1.18
59
%
Attributable to shareholders:
Net income
$
0.15
$
0.14
7
%
$
0.73
$
0.20
265
%
Common shares (000’s)(4)
Basic
40,325
42,307
(5
%)
40,821
42,509
(4
%)
Diluted
41,048
43,203
(5
%)
41,568
43,319
(4
%)
June 30
December 31
Financial Position at
2023
2022
Change
Total Assets
$
888,117
$
878,615
1
%
Long-Term Debt and Lease Liabilities (excluding current portion)
111,244
127,628
(13
%)
Working Capital (2)
108,577
112,154
(3
%)
Net Debt (3)
2,667
15,474
(83
%)
Shareholders’ Equity
529,954
522,023
2
%
Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.
Total Energy’s results for the second quarter ended June 30, 2023 represent record second quarter financial results that were underpinned by stable industry conditions and the deployment of equipment upgraded pursuant to the Company’s 2022 capital expenditure program.
Contract Drilling Services (“CDS”)
Three months ended June 30
Six months ended June 30
2023
2022
Change
2023
2022
Change
Revenue
$
54,282
$
49,440
10
%
$
136,818
$
109,502
25
%
EBITDA (1)
$
9,891
$
8,808
12
%
$
30,160
$
20,249
49
%
EBITDA (1) as a % of revenue
18
%
18
%
–
22
%
18
%
22
%
Operating days(2)
1,974
2,105
(6
%)
4,843
4,788
1
%
Canada
1,094
1,009
8
%
3,014
2,634
14
%
United States
571
696
(18
%)
1,161
1,397
(17
%)
Australia
309
400
(23
%)
668
757
(12
%)
Revenue per operating day(2), dollars
$
27,498
$
23,487
17
%
$
28,251
$
22,870
24
%
Canada
25,396
21,304
19
%
26,431
20,711
28
%
United States
27,319
24,165
13
%
28,227
22,998
23
%
Australia
35,275
27,813
27
%
36,500
30,145
21
%
Utilization
23
%
24
%
(4
%)
29
%
28
%
4
%
Canada
16
%
14
%
14
%
22
%
19
%
16
%
United States
52
%
59
%
(12
%)
51
%
59
%
(14
%)
Australia
68
%
88
%
(23
%)
74
%
84
%
(12
%)
Rigs, average for period
94
95
(1
%)
94
95
(1
%)
Canada
77
77
–
76
77
(1
%)
United States
12
13
(8
%)
13
13
–
Australia
5
5
–
5
5
–
(1)See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2)Operating days includes drilling and paid stand-by days.
CDS segment revenue during the second quarter of 2023 was higher compared with the previous year quarter as lower consolidated operating days were more than offset by increased pricing. The deployment of upgraded equipment in response to improving customer demand contributed to increased year over year second quarter revenue per operating day and utilization in Canada. Negatively impacting utilization in the United States (the “United States” or the “U.S.”) was the transfer of a drilling rig to Canada during the second quarter of 2023 and a general slowdown in industry activity, which was offset by higher pricing. The removal of a drilling rig from service during the second quarter of 2023 for recertification and upgrades resulted in lower year over year utilization in Australia. Lower Australian utilization was partially offset by higher revenue per operating day as compared to the second quarter of 2022 due to rate increases arising from previous rig upgrades and fewer standby days due to wet weather in 2023 compared to 2022.
Rentals and Transportation Services (“RTS”)
Three months ended June 30
Six months ended June 30
2023
2022
Change
2023
2022
Change
Revenue
$
19,812
$
13,441
47
%
$
44,225
$
28,841
53
%
EBITDA (1)
$
7,064
$
3,500
102
%
$
16,714
$
9,093
84
%
EBITDA (1) as a % of revenue
36
%
26
%
38
%
38
%
32
%
19
%
Revenue per utilized piece of equipment, dollars
$
15,105
$
10,219
48
%
$
25,154
$
20,444
23
%
Pieces of rental equipment
7,667
9,390
(18
%)
7,667
9,390
(18
%)
Canada
6,779
8,510
(20
%)
6,779
8,510
(20
%)
United States
888
880
1
%
888
880
1
%
Rental equipment utilization
15
%
14
%
7
%
21
%
15
%
40
%
Canada
14
%
13
%
8
%
18
%
14
%
29
%
United States
34
%
25
%
36
%
40
%
28
%
43
%
Heavy trucks
69
71
(3
%)
69
71
(3
%)
Canada
48
48
–
48
48
–
United States
21
23
(9
%)
21
23
(9
%)
(1)See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
Second quarter revenue in the RTS segment increased as compared to the same period in 2022 due to higher equipment utilization and improved pricing. Increased equipment utilization, improved pricing and this segment’s significant leverage to higher equipment utilization given its relatively high fixed cost structure contributed to a year over year increase in second quarter segment EBITDA and EBITDA margin. A significant number of underutilized rental pieces were disposed of in Canada during the second quarter of 2023.
Compression and Process Services (“CPS”)
Three months ended June 30
Six months ended June 30
2023
2022
Change
2023
2022
Change
Revenue
$
113,130
$
92,782
22
%
$
211,248
$
151,347
40
%
EBITDA (1)
$
12,399
$
14,948
(17
%)
$
24,998
$
18,206
37
%
EBITDA (1) as a % of revenue
11
%
16
%
(31
%)
12
%
12
%
–
Horsepower of equipment on rent at period end
41,842
30,970
35
%
41,842
30,970
35
%
Canada
19,202
13,975
37
%
19,202
13,975
37
%
United States
22,640
16,995
33
%
22,640
16,995
33
%
Rental equipment utilization during the period (HP)(2)
78
%
54
%
44
%
78
%
53
%
47
%
Canada
84
%
39
%
115
%
78
%
38
%
105
%
United States
73
%
75
%
(3
%)
77
%
74
%
4
%
Sales backlog at period end, $ million
$
185.6
$
181.7
2
%
$
185.6
$
181.7
2
%
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2) Rental equipment utilization is measured on a horsepower basis.
The year over year increase in the CPS segment’s second quarter revenue was due primarily to higher U.S. fabrication sales, increased equipment overhaul activity and increased utilization of the compression rental fleet. Excluding $7.4 million of contract cancellation revenue included in the second quarter of 2022, improved pricing on fabrication sales, increased overhead absorption due to higher production levels and higher rental fleet utilization all contributed to a year-over-year improvement in second quarter segment adjusted EBITDA and EBITDA margin, with second quarter adjusted EBITDA and EBITDA margin increasing 64% and 22%, respectively, for 2023 as compared to 2022. The fabrication sales backlog increased to $185.6 million, compared to the $181.7 million backlog at June 30, 2022. Sequentially, the quarter end backlog decreased $41.8 million as the conversion of quoting activity to sales moderated somewhat during the second quarter with no corresponding decrease in production activity.
Well Servicing (“WS”)
Three months ended June 30
Six months ended June 30
2023
2022
Change
2023
2022
Change
Revenue
$
21,621
$
23,541
(8
%)
$
54,331
$
50,966
7
%
EBITDA (1)
$
2,854
$
3,729
(23
%)
$
11,133
$
10,277
8
%
EBITDA (1) as a % of revenue
13
%
16
%
(19
%)
20
%
20
%
–
Service hours(2)
22,630
26,007
(13
%)
55,876
56,846
(2
%)
Canada
9,357
10,707
(13
%)
26,848
27,157
(1
%)
United States
5,767
4,556
27
%
12,411
8,710
42
%
Australia
7,506
10,744
(30
%)
16,617
20,979
(21
%)
Revenue per service hour(2), dollars
$
955
$
905
6
%
$
972
$
897
8
%
Canada
941
925
2
%
969
866
12
%
United States
993
892
11
%
998
856
17
%
Australia
945
891
6
%
959
953
1
%
Utilization(3)
25
%
27
%
(7
%)
32
%
31
%
3
%
Canada
18
%
21
%
(14
%)
26
%
26
%
–
United States
58
%
46
%
26
%
62
%
44
%
41
%
Australia
29
%
41
%
(29
%)
32
%
40
%
(20
%)
Rigs, average for period
79
80
(1
%)
79
80
(1
%)
Canada
56
57
(2
%)
56
57
(2
%)
United States
11
11
–
11
11
–
Australia
12
12
–
12
12
–
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2)Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby. (3) The Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company’s service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations.
Second quarter activity in the Canadian WS segment was negatively impacted by reduced well abandonment activity following the conclusion of government incentive programs. Negatively impacting second quarter activity in Australia was the removal of a service rig from operation for recertification and upgrades. Partially offsetting lower activity in Canada and Australia was higher year over year activity in the U.S. Year over year increases in second quarter revenue per service hour in all jurisdictions also partially offset lower consolidated activity levels.
Corporate
During the second quarter of 2023, Total Energy remained focused on the safe and efficient operation of its business and the execution of its 2023 capital expenditure program. After funding working capital requirements, $12.7 million of capital expenditures and $3.6 million of required debt, lease and interest payments, Total Energy generated $18.1 million of free cash flow during the quarter that was directed towards $10.0 million of additional debt reduction, $3.3 million of share repurchases and $3.2 million of dividends.
Total Energy exited the second quarter of 2023 with $108.6 million of positive working capital, including $29.9 million of cash, and $115 million of available credit under its $175 million of revolving bank credit facilities. The weighted average interest rate on the Company’s outstanding debt at June 30, 2023 was 5.09%.
Outlook
Despite a decline in commodity prices during the second quarter of 2023, industry conditions remained relatively stable. While oil prices have increased thus far during the third quarter of 2023, producers continue to be disciplined in their capital investment programs. In this environment, Total Energy remains focused on the safe and efficient operation of its business, the disciplined deployment of capital and opportunities to enhance shareholder value.
In Australia, the drilling rig removed from service during the second quarter of 2023 for recertification and upgrades returned to service in July 2023. The Australian service rig removed from service in the second quarter is currently undergoing recertification and upgrades and is expected to return to service later this year. In Canada, the triple drilling rig moved from the United States to Canada during the second quarter commenced drilling in early July following recertification and retrofitting.
Total Energy’s Board of Directors has approved a $6.0 million increase to the Company’s 2023 capital expenditure budget to $72.1 million, of which $42.5 million has been expended to June 30, 2023. This increase is directed towards continued equipment upgrades and recertifications in the CDS, RTS and WS segments in direct response to customer demand. Total Energy intends to fund the remaining $29.6 million of its remaining 2023 capital expenditure program with cash on hand, cash flow and proceeds from the disposition of underutilized equipment.
Conference Call
At 9:00 a.m. (Mountain Time) on August 11, 2023 Total Energy will conduct a conference call and webcast to discuss its second quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”. Persons wishing to participate in the conference call may do so by calling (800) 319-4610 or (416) 915-3239. Those who are unable to listen to the call live may listen to a recording of it on Total Energy’s website. A recording of the conference call will also be available until September 11, 2023 by dialing (855) 669-9658 (passcode 0318).
Selected Financial Information
Selected financial information relating to the three and six months ended June 30, 2023 and 2022 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management’s discussion and analysis to be issued in due course and in the Company’s 2022 Annual report.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
June 30
December 31
2023
2022
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
29,866
$
34,061
Accounts receivable
149,396
154,581
Inventory
111,658
91,614
Prepaid expenses and deposits
18,701
18,847
Income taxes receivable
169
496
Current portion of lease asset
220
378
310,010
299,977
Property, plant and equipment
566,984
567,515
Income taxes receivable
7,070
7,070
Goodwill
4,053
4,053
$
888,117
$
878,615
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$
135,355
$
114,274
Deferred revenue
55,690
63,895
Dividends payable
3,212
2,490
Current portion of lease liabilities
5,157
5,173
Current portion of long-term debt
2,019
1,991
201,433
187,823
Long-term debt
101,976
117,997
Lease liabilities
9,268
9,631
Deferred income tax liability
45,486
41,141
Shareholders’ equity:
Share capital
252,611
261,109
Contributed surplus
3,492
3,590
Accumulated other comprehensive loss
(22,332
)
(17,032
)
Non-controlling interest
529
552
Retained earnings
295,654
273,804
529,954
522,023
$
888,117
$
878,615
Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)
Three months ended
June 30
Six months ended
June 30
2023
2022
2023
2022
Revenue
$
208,845
$
179,204
$
446,622
$
340,656
Cost of services
169,049
140,917
347,035
270,715
Selling, general and administration
10,126
10,108
21,559
18,894
Other income
(440
)
(485
)
(446
)
(675
)
Share-based compensation
367
259
756
479
Depreciation
20,342
19,979
40,297
39,127
Operating income
9,401
8,426
37,421
12,116
Gain on sale of property, plant and equipment
512
394
1,012
1,870
Finance costs, net
(1,796
)
(1,563
)
(3,499
)
(3,369
)
Net income before income taxes
8,117
7,257
34,934
10,617
Current income tax expense (recovery)
47
21
371
(442
)
Deferred income tax expense
1,890
1,131
4,345
2,487
Total income tax expense
1,937
1,152
4,716
2,045
Net income
$
6,180
$
6,105
$
30,218
$
8,572
Net income (loss) attributable to:
Shareholders of the Company
$
6,201
$
6,113
$
30,241
$
8,585
Non-controlling interest
(21
)
(8
)
(23
)
(13
)
Income per share
Basic
$
0.15
$
0.14
$
0.74
$
0.20
Diluted
$
0.15
$
0.14
$
0.73
$
0.20
Condensed Interim Consolidated Statements of Comprehensive Income
Three months ended
June 30
Six months ended
June 30
2023
2022
2023
2022
Net income
$
6,180
$
6,105
$
30,218
$
8,572
Unrealized foreign currency translation
(4,682
)
114
(5,300
)
211
Total other comprehensive income (loss) for the period
(4,682
)
114
(5,300
)
211
Total comprehensive income
$
1,498
$
6,219
$
24,918
$
8,783
Total comprehensive income (loss) attributable to:
Shareholders of the Company
$
1,519
$
6,227
$
24,941
$
8,796
Non-controlling interest
(21
)
(8
)
(23
)
(13
)
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
Three months ended
June 30
Six months ended
June 30
2023
2022
2023
2022
Cash provided by (used in):
Operations:
Net income for the period
$
6,180
$
6,105
$
30,218
$
8,572
Add (deduct) items not affecting cash:
Depreciation
20,342
19,979
40,297
39,127
Share-based compensation
367
259
756
479
Gain on sale of property, plant and equipment
(512
)
(394
)
(1,012
)
(1,870
)
Finance costs, net
1,796
1,563
3,499
3,369
Unrealized gain on foreign currencies translation
(702
)
(485
)
(350
)
(675
)
Current income tax expense (recovery)
47
21
371
(442
)
Deferred income tax expense
1,890
1,131
4,345
2,487
Income taxes paid (recovered)
–
397
(44
)
80
Cashflow
29,408
28,576
78,080
51,127
Changes in non-cash working capital items:
Accounts receivable
22,124
(15,130
)
5,120
(39,978
)
Inventory
(9,241
)
2,937
(20,044
)
(3,590
)
Prepaid expenses and deposits
(491
)
(6,307
)
146
(6,249
)
Accounts payable and accrued liabilities
14,534
12,170
18,546
28,839
Deferred revenue
(12,432
)
2,747
(8,205
)
39,799
Cash provided by operating activities
43,902
24,993
73,643
69,948
Investing:
Purchase of property, plant and equipment
(12,665
)
(13,406
)
(42,454
)
(24,959
)
Proceeds on disposal of property, plant and equipment
741
838
1,504
3,877
Changes in non-cash working capital items
(10,229
)
1,608
2,504
2,951
Cash used in investing activities
(22,153
)
(10,960
)
(38,446
)
(18,131
)
Financing:
Repayment of long-term debt
(10,496
)
(10,651
)
(15,993
)
(31,304
)
Repayment of lease liabilities
(1,539
)
(1,219
)
(3,156
)
(2,281
)
Dividends to shareholders
(3,242
)
–
(5,732
)
–
Repurchase of common shares
(3,275
)
(2,371
)
(11,289
)
(5,899
)
Shares issued on exercise of share options
–
31
–
31
Interest paid
(1,559
)
(1,639
)
(3,222
)
(3,384
)
Cash used in financing activities
(20,111
)
(15,849
)
(39,392
)
(42,837
)
Change in cash and cash equivalents
1,638
(1,816
)
(4,195
)
8,980
Cash and cash equivalents, beginning of period
28,228
44,161
34,061
33,365
Cash and cash equivalents, end of period
$
29,866
$
42,345
$
29,866
$
42,345
Segmented Information
The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labour required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labour required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs.
As at and for the three months ended June 30, 2023 (unaudited, in thousands of Canadian dollars)
Contract
Rentals and
Compression
Well
Corporate(1)
Total
Drilling
Transportation
and Process
Servicing
Services
Services
Services
Revenue
$
54,282
$
19,812
$
113,130
$
21,621
$
–
$
208,845
Cost of services
42,783
10,994
97,513
17,759
–
169,049
Selling, general and administration
1,986
2,076
3,218
1,072
1,774
10,126
Other income (loss)
(288
)
(7
)
43
–
(188
)
(440
)
Share-based compensation
–
–
–
–
367
367
Depreciation
9,479
4,845
2,614
3,142
262
20,342
Operating income (loss)
322
1,904
9,742
(352
)
(2,215
)
9,401
Gain on sale of property, plant and equipment
90
315
43
64
–
512
Finance costs, net
(15
)
(17
)
(111
)
(17
)
(1,636
)
(1,796
)
Net income (loss) before income taxes
397
2,202
9,674
(305
)
(3,851
)
8,117
Goodwill
–
2,514
1,539
–
–
4,053
Total assets
354,433
177,972
278,289
75,584
1,839
888,117
Total liabilities
65,250
27,464
132,616
6,196
126,637
358,163
Capital expenditures
7,614
2,596
542
1,913
–
12,665
Canada
United States
Australia
Total
Revenue
$
83,257
$
98,820
$
26,768
$
208,845
Non-current assets (2)
395,421
128,222
47,394
571,037
As at and for the three months ended June 30, 2022 (unaudited, in thousands of Canadian dollars)
Contract
Rentals and
Compression
Well
Corporate(1)
Total
Drilling
Transportation
and Process
Servicing
Services
Services
Services
Revenue
$
49,440
$
13,441
$
92,782
$
23,541
$
–
$
179,204
Cost of services
39,171
8,213
74,989
18,544
–
140,917
Selling, general and administration
1,754
1,702
2,930
1,310
2,412
10,108
Other income
–
–
–
–
(485
)
(485
)
Share-based compensation
–
–
–
–
259
259
Depreciation
8,882
4,886
2,779
3,218
214
19,979
Operating income (loss)
(367
)
(1,360
)
12,084
469
(2,400
)
8,426
Gain on sale of property, plant and equipment
293
(26
)
85
42
–
394
Finance costs, net
(4
)
(23
)
(102
)
(4
)
(1,430
)
(1,563
)
Net income (loss) before income taxes
(78
)
(1,409
)
12,067
507
(3,830
)
7,257
Goodwill
–
2,514
1,539
–
–
4,053
Total assets
339,585
181,049
247,172
87,703
5,474
860,983
Total liabilities
71,626
13,936
103,052
6,756
171,314
366,684
Capital expenditures
7,282
2,524
1,691
1,909
–
13,406
Canada
United States
Australia
Total
Revenue
$
96,074
$
45,714
$
37,416
$
179,204
Non-current assets (2)
374,963
140,254
53,480
568,697
(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
(2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.
As at and for the six months ended June 30, 2023 (unaudited, in thousands of Canadian dollars)
Contract
Rentals and
Compression
Well
Corporate(1)
Total
Drilling
Transportation
and Process
Servicing
Services
Services
Services
Revenue
$
136,818
$
44,225
$
211,248
$
54,331
$
–
$
446,622
Cost of services
102,201
23,897
179,485
41,452
–
347,035
Selling, general and administration
4,971
4,134
6,795
1,916
3,743
21,559
Other income
(288
)
(7
)
43
–
(194
)
(446
)
Share-based compensation
–
–
–
–
756
756
Depreciation
18,527
9,717
5,237
6,289
527
40,297
Operating income (loss)
11,407
6,484
19,688
4,674
(4,832
)
37,421
Gain on sale of property, plant and equipment
226
513
73
170
30
1,012
Finance costs, net
(30
)
(35
)
(232
)
(33
)
(3,169
)
(3,499
)
Net income (loss) before income taxes
11,603
6,962
19,529
4,811
(7,971
)
34,934
Goodwill
–
2,514
1,539
–
–
4,053
Total assets
354,433
177,972
278,289
75,584
1,839
888,117
Total liabilities
65,250
27,464
132,616
6,196
126,637
358,163
Capital expenditures
31,434
4,134
2,515
4,371
–
42,454
Canada
United States
Australia
Total
Revenue
$
191,384
$
203,827
$
51,411
$
446,622
Non-current assets (2)
395,421
128,222
47,394
571,037
As at and for the six months ended June 30, 2022 (unaudited, in thousands of Canadian dollars)
Contract
Rentals and
Compression
Well
Corporate(1)
Total
Drilling
Transportation
and Process
Servicing
Services
Services
Services
Revenue
$
109,502
$
28,841
$
151,347
$
50,966
$
–
$
340,656
Cost of services
86,165
17,060
129,322
38,168
–
270,715
Selling, general and administration
3,356
3,328
4,724
2,578
4,908
18,894
Other income
–
–
–
–
(675
)
(675
)
Share-based compensation
–
–
–
–
479
479
Depreciation
17,759
9,795
4,692
6,420
461
39,127
Operating income (loss)
2,222
(1,342
)
12,609
3,800
(5,173
)
12,116
Gain (loss) on sale of property, plant and equipment
268
640
905
57
–
1,870
Finance costs, net
(6
)
(39
)
(174
)
(9
)
(3,141
)
(3,369
)
Net income (loss) before income taxes
2,484
(741
)
13,340
3,848
(8,314
)
10,617
Goodwill
–
2,514
1,539
–
–
4,053
Total assets
339,585
181,049
247,172
87,703
5,474
860,983
Total liabilities
71,626
13,936
103,052
6,756
171,314
366,684
Capital expenditures
17,464
2,758
2,761
1,965
11
24,959
Canada
United States
Australia
Total
Revenue
$
184,267
$
89,358
$
67,031
$
340,656
Non-current assets (2)
374,963
140,254
53,480
568,697
(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
(2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.
Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca
Notes to the Financial Highlights
(1) EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company’s primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.
(2) Working capital equals current assets minus current liabilities.
(3) Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity.
(4) Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 5 to the Company’s Condensed Interim Consolidated Financial Statements.
Certain statements contained in this press release, including statements which may contain words such as “could”, “should”, “expect”, “believe”, “will” and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.
In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at www.sedar.com) for a discussion of such risks and uncertainties.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, July 10, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy”) (TSX:TOT) will conduct a conference call and webcast following the release of its financial results for the three months ended June 30, 2023. The financial results will be released prior to the conference call. Daniel Halyk, President and CEO will host the call.
Open to:
Date:
Time:
Call:
Shareholders and other interested persons
August 11, 2023
9:00 a.m. (Mountain Time)
(800) 319-4610 or (416) 915-3239
A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”.
Shortly after the live webcast, an archived version will be available on Total Energy’s website. A recording of the conference call will also be available until September 11, 2023, by dialing (855) 669-9658, passcode 0318.
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol “TOT”.
For further information, please contact Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, June 01, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy”) (TSX:TOT) announces that its Board of Directors has declared a quarterly dividend of $0.08 (Cdn.) per common share for the quarter ending June 30, 2023 on Total Energy’s outstanding common shares. The dividend is payable on July 17, 2023, to shareholders of record at the close of business on June 30, 2023. The ex-dividend date is June 29, 2023.
Unless otherwise indicated, all dividends paid by Total Energy are “eligible dividends” within the meaning of subsection 89(1) of the Income Tax Act (Canada).
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Yuliya Gorbach, Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, May 16, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces that the following matters were voted upon at the Company’s annual meeting of Shareholders on May 16, 2023 (the “Meeting”). A total of 29,399,166 common shares, representing 72.1% of Total Energy’s issued and outstanding shares as at the Record Date for the Meeting, were represented in person or by proxy at the Meeting.
Matter Voted Upon
Outcome of Vote
Votes For
Votes Withheld
1.
The election of the following nominees as directors of the Company for the ensuing year or until their successors are elected or appointed:
George Chow
Passed
28,601,501
39,034
(99.9%)
(0.1%)
Glenn Dagenais
Passed
28,507,732
132,803
(99.5%)
(0.5%)
Daniel Halyk
Passed
28,506,844
133,691
(99.5%)
(0.5%)
Jessica Kirstine
Passed
28,523,545
116,990
(99.6%)
(0.4%)
Greg Melchin
Passed
28,492,244
148,291
(99.5%)
(0.5%)
Ken Mullen
Passed
25,988,359
2,652,176
(90.7%)
(9.3%)
2.
The appointment of MNP LLP as auditors of the Company to hold office until the close of the next annual meeting of shareholders.
Passed
29,353,716
(99.9%)
45,450
(0.1%)
Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Jeremy Busch-Howell, Vice-President Legal and General Counsel at (403) 216-3939 or by e-mail at: investorrelations@totalenergy.ca or visit our website at: www.totalenergy.ca.
CALGARY, Alberta, May 11, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended March 31, 2023.
Financial Highlights
($000’s except per share data)
Three months ended March 31
2023
2022
Change
Revenue
$
228,724
$
161,452
42
%
Operating income
28,020
3,690
659
%
EBITDA (1)
48,475
24,314
99
%
Cashflow
48,672
22,551
116
%
Net income
24,038
2,467
874
%
Attributable to shareholders
24,040
2,472
872
%
Per Share Data (Diluted)
EBITDA (1)
$
1.15
$
0.56
105
%
Cashflow
$
1.16
$
0.52
123
%
Attributable to shareholders:
Net income
$
0.57
$
0.06
850
%
Common shares (000’s)(4)
Basic
41,322
42,713
(3
%)
Diluted
42,048
43,423
(3
%)
March 31
December 31
Financial Position at
2023
2022
Change
Total Assets
$
910,408
$
878,615
4
%
Long-Term Debt and Lease Liabilities (excluding current portion)
122,714
127,628
(4
%)
Working Capital (2)
111,312
112,154
(1
%)
Net Debt (3)
11,402
15,474
(26
%)
Shareholders’ Equity
534,576
522,023
2
%
Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.
Total Energy’s results for the first quarter ended March 31, 2023 represent record quarterly financial results that were driven by improved North American industry conditions compared to the first quarter of 2022 and the deployment of equipment upgraded pursuant to the Company’s 2022 capital expenditure program.
Contract Drilling Services (“CDS”)
Three months ended March 31
2023
2022
Change
Revenue
$
73,483
$
60,062
22
%
EBITDA (1)
$
20,269
$
11,441
77
%
EBITDA (1) as a % of revenue
28%
19%
47
%
Operating days(2)
2,869
2,683
7
%
Canada
1,920
1,625
18
%
United States
590
701
(16
%)
Australia
359
357
–
Revenue per operating day(2), dollars
$
25,622
$
22,386
14
%
Canada
22,306
20,343
10
%
United States
29,107
21,839
33
%
Australia
37,554
32,759
15
%
Utilization
34%
31%
10
%
Canada
28%
23%
22
%
United States
50%
60%
(17
%)
Australia
80%
79%
1
%
Rigs, average for period
94
95
(1
%)
Canada
76
77
(1
%)
United States
13
13
–
Australia
5
5
–
(1)See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2)Operating days includes drilling and paid stand-by days.
North American drilling activity continued to recover during the first quarter of 2023 as compared to 2022, particularly in Canada. Increased activity and pricing drove a significant year over year improvement in Canadian first quarter financial performance. Despite lower utilization, increased day rates contributed to higher revenue in the United States of America (the “United States” or the “U.S.”). In Australia, increased day rates and stable utilization improved first quarter revenue and operating income on a year over year basis.
Rentals and Transportation Services (“RTS”)
Three months ended March 31
2023
2022
Change
Revenue
$
24,413
$
15,400
59
%
EBITDA (1)
$
9,650
$
5,593
73
%
EBITDA (1) as a % of revenue
40%
36%
11
%
Revenue per utilized piece of equipment, dollars
$
13,600
$
9,627
41
%
Pieces of rental equipment
9,455
9,400
1
%
Canada
8,555
8,520
0
%
United States
900
880
2
%
Rental equipment utilization
19%
17%
12
%
Canada
16%
15%
7
%
United States
46%
30%
53
%
Heavy trucks
70
71
(1
%)
Canada
48
48
–
United States
22
23
(4
%)
(1)See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
First quarter revenue in the RTS segment increased as compared to the same period in 2022 due to higher equipment utilization and improved pricing. Increased equipment utilization, improved pricing and this segment’s significant leverage to higher equipment utilization given its relatively high fixed cost structure contributed to a year over year increase in first quarter segment EBITDA and EBITDA margin.
Compression and Process Services (“CPS”)
Three months ended March 31
2023
2022
Change
Revenue
$
98,118
$
58,565
68
%
EBITDA (1)
$
12,599
$
3,258
287
%
EBITDA (1) as a % of revenue
13%
6%
117
%
Horsepower of equipment on rent at period end
44,719
29,670
51
%
Canada
19,209
12,825
50
%
United States
25,510
16,845
51
%
Rental equipment utilization during the period (HP)(2)
78%
52%
50
%
Canada
74%
37%
100
%
United States
81%
74%
9
%
Sales backlog at period end, $ million
$
227.4
$
180.7
26
%
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2) Rental equipment utilization is measured on a horsepower basis.
The year over year increase in the CPS segment’s first quarter revenue was due primarily to higher fabrication sales, increased equipment overhaul activity and the continued recovery in utilization of the compression rental fleet. Improved pricing on fabrication sales, increased overhead absorption due to higher production levels and higher rental fleet utilization all contributed to a significant year over year improvement in first quarter segment EBITDA and EBITDA margin. The fabrication sales backlog continued to grow during the first quarter of 2023, increasing by $46.7 million to $227.4 million compared to the $180.7 million backlog at March 31, 2022 and by $7.9 million, or 4%, from the $219.5 million backlog at December 31, 2022.
Well Servicing (“WS”)
Three months ended March 31
2023
2022
Change
Revenue
$
32,710
$
27,425
19
%
EBITDA (1)
$
8,279
$
6,548
26
%
EBITDA (1) as a % of revenue
25%
24%
4
%
Service hours(2)
33,246
30,839
8
%
Canada
17,491
16,449
6
%
United States
6,644
4,155
60
%
Australia
9,111
10,235
(11
%)
Revenue per service hour(2), dollars
$
984
$
889
11
%
Canada
984
828
19
%
United States
1,003
818
23
%
Australia
970
1,017
(5
%)
Utilization(3)
39%
34%
15
%
Canada
34%
32%
6
%
United States
67%
42%
60
%
Australia
35%
39%
(10
%)
Rigs, average for period
79
80
(1
%)
Canada
56
57
(2
%)
United States
11
11
–
Australia
12
12
–
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release. (2)Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby. (3) The Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company’s service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations.
First quarter WS segment revenue and EBITDA increased in 2023 as compared to 2022 due to improved North American activity and pricing. Partially offsetting the improved North American results was weaker Australian results resulting from lower activity levels and a reduced effective hourly rate due to relatively higher standby hours as compared to the first quarter of 2022. Contributing to lower Australian activity levels during the first quarter of 2023 was the removal of one service rig for required recertifications. This rig is expected to be redeployed later in 2023.
Corporate
During the first quarter of 2023, Total Energy was focused on the safe and efficient operation of its business, the deployment of equipment upgraded pursuant to its 2022 capital program and the execution of its preliminary 2023 capital expenditure program. After funding $30.3 million of capital expenditures and $3.8 million of debt, lease and interest obligations, Total Energy generated $14.6 million of free cash flow during the quarter that was directed towards funding working capital requirements as well as $5.0 million of voluntary debt reduction, $8.0 million of share repurchases and $2.5 million of dividends.
Total Energy exited the first quarter of 2023 with $111.3 million of positive working capital, including $28.2 million of cash, and $150 million of available credit under its $225 million of revolving bank credit facilities. The weighted average interest rate on the Company’s outstanding debt at March 31, 2023 was 5.15%.
Outlook
While continued global economic uncertainty and a relatively warm winter in the northern hemisphere have contributed to oil price volatility and lower natural gas prices, industry conditions generally remain positive. Current indications are that near term industry activity levels will remain stable on a seasonally adjusted basis, with the CPS segment’s significant fabrication backlog providing visibility for that segment for the remainder of 2023. In this environment, Total Energy remains focused on the safe and efficient operation of its business, the disciplined deployment of capital and opportunities to enhance shareholder value.
On April 12, 2023, Total Energy’s syndicated revolving credit facility was extended to November 10, 2026. In order to reduce finance costs, Total Energy requested such facility be reduced by $50 million to $170 million. With $70 million drawn on this facility, $100 million of additional credit is currently available to the Company. In addition, a subsidiary of the Company maintains a $5.0 million revolving credit facility that remains undrawn and fully available.
Total Energy’s Board of Directors has approved a $14.4 million increase to the Company’s 2023 capital expenditure budget to $66.1 million, of which $30.3 million has been expended to March 31, 2023. This increase is primarily directed towards equipment upgrades and recertifications. Included in the increased capital budget is the recertification and retrofitting of an AC triple drilling rig that the Company has recently moved to Canada from the United States. Such rig has been contracted on a take or pay basis and is expected to commence operations in June 2023. Total Energy intends to fund the remaining $35.8 million of its increased 2023 capital expenditure program with cash on hand and cash flow.
Annual Meeting of Shareholders
Shareholders and other interested persons are invited to attend Total Energy’s annual meeting of Shareholders which will take place on Tuesday, May 16, 2023 at 10:00 am (Mountain Time) at the Calgary Petroleum Club, 319 – 5th Avenue S.W., Calgary, Alberta.
Conference Call
At 9:00 a.m. (Mountain Time) on May 12, 2023 Total Energy will conduct a conference call and webcast to discuss its first quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”. Persons wishing to participate in the conference call may do so by calling (800) 319-4610 or (416) 915-3239. Those who are unable to listen to the call live may listen to a recording of it on Total Energy’s website. A recording of the conference call will also be available until June 12, 2023 by dialing (855) 669-9658 (passcode 0057).
Selected Financial Information
Selected financial information relating to the three months ended March 31, 2023 and 2022 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management’s discussion and analysis to be issued in due course and in the Company’s 2022 Annual report.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
March 31
December 31
2023
2022
(unaudited)
(audited)
Assets
Current assets:
Cash and cash equivalents
$
28,228
$
34,061
Accounts receivable
171,520
154,581
Inventory
102,417
91,614
Prepaid expenses and deposits
18,210
18,847
Income taxes receivable
216
496
Current portion of lease asset
243
378
320,834
299,977
Property, plant and equipment
578,451
567,515
Income taxes receivable
7,070
7,070
Goodwill
4,053
4,053
$
910,408
$
878,615
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities
$
130,945
$
114,274
Deferred revenue
68,122
63,895
Dividends payable
3,242
2,490
Current portion of lease liabilities
5,210
5,173
Current portion of long-term debt
2,003
1,991
209,522
187,823
Long-term debt
112,488
117,997
Lease liabilities
10,226
9,631
Deferred income tax liability
43,596
41,141
Shareholders’ equity:
Share capital
254,975
261,109
Contributed surplus
3,158
3,590
Accumulated other comprehensive loss
(17,650
)
(17,032
)
Non-controlling interest
550
552
Retained earnings
293,543
273,804
534,576
522,023
$
910,408
$
878,615
Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)
Three months ended
March 31
2023
2022
Revenue
$
228,724
$
161,452
Cost of services
168,933
129,798
Selling, general and administration
11,433
8,786
Other income
(6
)
(190
)
Share-based compensation
389
220
Depreciation
19,955
19,148
Operating income
28,020
3,690
Gain on sale of property, plant and equipment
500
1,476
Finance costs, net
(1,703
)
(1,806
)
Net income before income taxes
26,817
3,360
Current income tax expense (recovery)
324
(463
)
Deferred income tax expense
2,455
1,356
Total income tax expense
2,779
893
Net income
$
24,038
$
2,467
Net income (loss) attributable to:
Shareholders of the Company
$
24,040
$
2,472
Non-controlling interest
(2
)
(5
)
Income per share
Basic
$
0.58
$
0.06
Diluted
$
0.57
$
0.06
Condensed Interim Consolidated Statements of Comprehensive Income (Loss)
Three months ended
March 31
2023
2022
Net income for the period
$
24,038
$
2,467
Unrealized foreign currency translation
(618
)
97
Total other comprehensive income (loss) for the period
(618
)
97
Total comprehensive income
$
23,420
$
2,564
Total comprehensive income (loss) attributable to:
Shareholders of the Company
$
23,422
$
2,569
Non-controlling interest
(2
)
(5
)
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
Three months ended
March 31
2023
2022
Cash provided by (used in):
Operations:
Net income for the period
$
24,038
$
2,467
Add (deduct) items not affecting cash:
Depreciation
19,955
19,148
Share-based compensation
389
220
Gain on sale of property, plant and equipment
(500
)
(1,476
)
Finance costs, net
1,703
1,806
Unrealized loss (gain) on foreign currencies translation
352
(190
)
Current income tax expense (recovery)
324
(463
)
Deferred income tax expense
2,455
1,356
Income taxes paid
(44
)
(317
)
Cashflow
48,672
22,551
Changes in non-cash working capital items:
Accounts receivable
(17,004
)
(24,848
)
Inventory
(10,803
)
(6,527
)
Prepaid expenses and deposits
637
58
Accounts payable and accrued liabilities
4,012
16,669
Deferred revenue
4,227
37,052
Cash provided by operating activities
29,741
44,955
Investing:
Purchase of property, plant and equipment
(30,329
)
(11,553
)
Proceeds on disposal of property, plant and equipment
1,303
3,039
Changes in non-cash working capital items
12,733
1,343
Cash used in investing activities
(16,293
)
(7,171
)
Financing:
Repayment of long-term debt
(5,497
)
(20,653
)
Repayment of lease liabilities
(1,617
)
(1,062
)
Dividends to shareholders
(2,490
)
–
Repurchase of common shares
(8,014
)
(3,528
)
Interest paid
(1,663
)
(1,745
)
Cash used in financing activities
(19,281
)
(26,988
)
Change in cash and cash equivalents
(5,833
)
10,796
Cash and cash equivalents, beginning of period
34,061
33,365
Cash and cash equivalents, end of period
$
28,228
$
44,161
Segmented Information
The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labour required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labour required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs.
As at and for the three months ended March 31, 2023 (unaudited, in thousands of Canadian dollars)
Contract
Rentals and
Compression
Well
Corporate (1)
Total
Drilling
Transportation
and Process
Servicing
Services
Services
Services
Revenue
$
73,483
$
24,413
$
98,118
$
32,710
$
–
$
228,724
Cost of services
50,365
12,903
81,972
23,693
–
168,933
Selling, general and administration
2,985
2,058
3,577
844
1,969
11,433
Other income
–
–
–
–
(6
)
(6
)
Share-based compensation
–
–
–
–
389
389
Depreciation
9,048
4,872
2,623
3,147
265
19,955
Operating income (loss)
11,085
4,580
9,946
5,026
(2,617
)
28,020
Gain on sale of property, plant and equipment
136
198
30
106
30
500
Finance costs, net
(15
)
(18
)
(121
)
(16
)
(1,533
)
(1,703
)
Net income (loss) before income taxes
11,206
4,760
9,855
5,116
(4,120
)
26,817
Goodwill
–
2,514
1,539
–
–
4,053
Total assets
370,833
184,392
272,071
83,330
(218
)
910,408
Total liabilities
79,568
23,838
124,109
7,632
140,685
375,832
Capital expenditures
23,824
1,538
2,509
2,458
–
30,329
Canada
United States
Australia
Other
Total
Revenue
$
75,310
$
128,770
$
24,644
$
–
$
228,724
Non-current assets (2)
386,242
146,475
49,787
–
582,504
As at and for the three months ended March 31, 2022 (unaudited, in thousands of Canadian dollars)
Contract
Rentals and
Compression
Well
Corporate (1)
Total
Drilling
Transportation
and Process
Servicing
Services
Services
Services
Revenue
$
60,062
$
15,400
$
58,565
$
27,425
$
–
$
161,452
Cost of services
46,994
8,847
54,333
19,624
–
129,798
Selling, general and administration
1,602
1,626
1,794
1,268
2,496
8,786
Other income
–
–
–
–
(190
)
(190
)
Share-based compensation
–
–
–
–
220
220
Depreciation
8,877
4,909
1,913
3,202
247
19,148
Operating income (loss)
2,589
18
525
3,331
(2,773
)
3,690
Gain (loss) on sale of property, plant and equipment
(25
)
666
820
15
–
1,476
Finance costs, net
(2
)
(16
)
(72
)
(5
)
(1,711
)
(1,806
)
Net income (loss) before income taxes
2,562
668
1,273
3,341
(4,484
)
3,360
Goodwill
–
2,514
1,539
–
–
4,053
Total assets
338,397
180,381
227,657
94,335
6,252
847,022
Total liabilities
64,475
12,874
90,416
5,282
181,282
354,329
Capital expenditures
10,182
234
1,070
56
11
11,553
Three months ended March 31, 2022
Canada
United States
Australia
Other
Total
Revenue
$
88,193
$
43,644
$
29,615
$
–
$
161,452
Non-current assets (2)
375,077
137,036
58,604
–
570,717
(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities. (2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.
Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca
Notes to the Financial Highlights
(1)
EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company’s primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.
(2)
Working capital equals current assets minus current liabilities.
(3)
Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity.
(4)
Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 5 to the Company’s Condensed Interim Consolidated Financial Statements.
Certain statements contained in this press release, including statements which may contain words such as “could”, “should”, “expect”, “believe”, “will” and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.
In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at www.sedar.com) for a discussion of such risks and uncertainties.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, April 14, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy”) (TSX:TOT) will conduct a conference call and webcast following the release of its financial results for the three months ended March 31, 2023. The financial results will be released prior to the conference call. Daniel Halyk, President and CEO will host the call.
Open to:
Date:
Time:
Call:
Shareholders and other interested persons
May 12, 2023
9:00 a.m. (Mountain Time)
(800) 319-4610 or (416) 915-3239
A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”.
Shortly after the live webcast, an archived version will be available on Total Energy’s website. A recording of the conference call will also be available until June 12, 2023, by dialing (855) 669-9658, passcode 0057.
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol “TOT”.
For further information, please contact Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
The TSX has neither approved nor disapproved of the information contained herein.
CALGARY, Alberta, April 12, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total”) (TSX:TOT) is pleased to announce that the Alberta Court of Appeal has dismissed an appeal by Western Energy Services Corp. (“Western”) of two previous court decisions dismissing Western’s claim against Savanna Energy Services Corp. (“Savanna”) for a $20 million break fee following the acquisition of Savanna by Total in 2017. Savanna is a wholly-owned subsidiary of Total.
Headquartered in Calgary, Alberta, Total Energy provides contract drilling services, rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Daniel Halyk, President & CEO at (403) 216-3921 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.
The TSX has neither approved nor disapproved of the information contained herein.
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