EDMONTON, ALBERTA -- (Marketwire) -- 03/29/13 -- Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX: BRY), a leading North American wholesale distributor and manufacturer of oil and gas drilling fluids and steel pipe, is pleased to announce its financial results for the fourth quarter and the year ended December 31, 2012.
Since the first quarter of 2012, unstable macroeconomic factors and uncertain commodity prices contributed to lower drilling and completion activity across the Western Canadian Sedimentary Basin ("WCSB"). Despite the reduced overall 2012 drilling activity, Bri-Chem's consolidated revenues only modestly decreased 14.0% to $160,068,060 for the year ended December 31, 2012, compared to $186,125,404 from the prior year. Net earnings in 2012 were $4,892,520 or $0.31 diluted earnings per share compared to net earnings of $9,462,267 or $0.61 diluted earnings per share for 2011, a decrease of 49.4%. Earnings before interest, taxes, amortization and share-based payments expense ("EBITDAC") were $10,550,796 or $0.61 per share, a decrease of $5,843,829 (35.65%) compared to 2011.
Consolidated revenues were $39,514,976 in the fourth quarter of 2012, compared to $48,169,674 for the same period in 2011. Net earnings in the fourth quarter were $1,330,141 or $0.06 diluted earnings per share compared to $2,431,287 or $0.16 diluted earnings per share during the same period last year. During the three months ended December 31, 2012, EBITDAC was $2,964,507 or $0.17 per share, a decrease of $1,240,419 or 29.5% over the same period in 2011.
The Company's North American oil and gas drilling fluids division recorded sales of $29,419,513 and $118,745,813 for the three and twelve months ended December 31, 2012, a decrease of 29.6% and 24.3% respectively compared to the same periods in 2011. In Canada, drilling rig utilization averaged 43.6% for the fourth quarter and 43.6% for the year ended December 31, 2012, a decrease of 17.1% and 8.7% respectively from last year when utilization rates averaged 60.7% and 52.3%. The Canadian fluids division generated sales of $24,916,134 and $99,641,313 for the three and twelve months ended December 31, 2012, compared to sales of $38,844,681 and $151,677,999 over the same comparable period in 2011. The decrease in Canadian fluid sales was mainly due to the decrease in the number of wells drilled in 2012 and a sharp decline in liquid invert sales from two of the Company's largest customers. On November 30, 2012, the Company purchased the assets of Kemik Inc., a Calgary based proprietary cementing additives blender and packager which is expected to enhance the Company's presence for cementing sales throughout North America.
Bri-Chem's drilling fluids market presence in the USA has now expanded to fourteen warehouses after the December 31, 2012 acquisition of General Supply Company and its three key Oklahoma warehouse locations. This recent acquisition is a complementary addition to our strategy of pursuing to become the dominant independent national wholesale supplier of drilling fluids in the United States. The Company's USA drilling fluids division, acquired on June 1, 2011, generated revenues of $19,104,500 for the year ended December 31, 2012 compared to seven months sales of $5,246,610 in 2011, representing a 264.1% increase. Fourth quarter sales were $4,503,379 compared to $2,971,577 an increase of 51.5%. Drilling activity in the USA was down approximately 11.3% in 2012 compared to the prior year.
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