CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- Canadian Energy Services & Technology Corp. ("CES" or the "Company") (TSX: CEU) (OTCQX: CESDF) is pleased to report on its financial and operating results for the three and twelve months ended December 31, 2012. CES is also pleased to announce that Mr. Jason Waugh has been appointed as a Vice President and Officer of Canadian Energy Services & Technology Corp. effective March 7, 2013. Further, CES announced today that it will pay a cash dividend of $0.055 per common share on April 15, 2013 to the shareholders of record at the close of business on March 28, 2013.
During Q4 2012, the Company completed two strategic acquisitions. On November 21, 2012, in order to expand the Company's Canadian drilling fluid division, the Company completed the acquisition of the business assets of Tervita Corporation's ("Tervita") drilling fluids division, ProDrill Fluid Technologies ("ProDrill"). On December 31, 2012, in order to expand the Company's US operations, the Company completed the acquisition of all of the business assets of Mega Fluids Mid-Continent, LLC ("Mega Fluids"), a privately-held drilling fluids services company which designs and implements drilling fluid systems for oil and gas operators in the Mid-Continent region.
CES generated gross revenue of $95.0 million during the fourth quarter of 2012, compared to $138.8 million for the three months ended December 31, 2011, a decrease of $43.8 million or 32% on a year-over-year basis. Revenue from Canadian operations for the three months ended December 31, 2012, decreased $21.2 million or 32% to $44.2 million while the US revenue decreased $22.6 million or 31% to $50.8 million. The decreases were indicative of lower year-over-year activity levels due to reduced customer spending as 2012 capital programs came to a close. In Canada this was further affected by the suspension of operations of one of CES's largest customers during the quarter. In the US, the slowdown was mostly sharply experienced in the Marcellus where activity continued to drop in a basin focused predominantly on dry gas targets.
Q4 2012 was a difficult quarter for CES with a number of events as described above that contributed to weaker quarterly results. However, with a shift in activity in the US to new work in the Eagle Ford; the addition of significant work in the Mississippi Lime as a result of the Mega Fluids acquisition; and a pick-up of activity in the other regions the US drilling fluids business is back on track. In Canada a combination of the ProDrill acquisition and a pick-up of activity in the traditionally robust winter drilling season has Canadian drilling fluids also back on track.
"We don't take the financial results of Q4 lightly. However, based on the actions we have taken, we are very pleased with the current operational and financial position of the company. We are also very excited about the prospects for 2013, particularly in light of the new opportunities we see as a result of the JACAM acquisition," said Tom Simons, President and Chief Executive Officer of CES.
Net income before interest, taxes, amortization, gains and losses on disposal of assets, goodwill impairment, unrealized foreign exchange gains and losses, unrealized derivative gains and losses, and stock-based compensation ("EBITDAC") for the three months ended December 31, 2012 was $10.1 million as compared to $24.4 million for the three months ended December 31, 2011, representing a decrease of $14.4 million or 59%. For the twelve month period ended December 31, 2012, EBITDAC totalled $64.9 million as compared to $76.3 million in 2011 representing a decrease of $11.4 million or 15%. CES recorded EBITDAC per share of $0.18 ($0.17 diluted) for the three months ended December 31, 2012 versus EBITDAC per share of $0.44 ($0.43 diluted) in 2011, a decrease of 59% (60% diluted). For 2012, CES recorded EBITDAC per share of $1.17 ($1.13 diluted) versus EBITDAC per share of $1.39 ($1.35 diluted) in 2011, a decrease of 16%.
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