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For the year, revenue and gross profit increased 28% and 19%, respectively, compared to prior year. Increased contract and project activity offset the impact of lower drilling activity and lower value received for our products.
Western Onsite
Revenue is primarily generated from:
-- the supply and operation of drill site processing equipment, including equipment for solids control and drill cuttings management throughout western Canada and the U.S.;-- onsite service in western Canada (excluding services provided by Heavy Oil) includes: industrial cleaning; site remediation; centrifugation; and dredging and dewatering; and-- environmental services serving primarily oil and gas customers.
Western Onsite performance is primarily affected by fluctuations in drilling activity in western Canada and the U.S. We can also be impacted by the competitive environment. To address these risks, we have developed a strong customer partnership approach and service differentiation to secure Newalta brand loyalty. Other onsite services for this business unit are in the early stages of development. We are currently engaged primarily in short-term or event-based projects, which will vary from quarter-to-quarter. Western Onsite is also affected by market conditions in various other industries, including pulp and paper, refining, mining and municipal dewatering.
Q4 2012 Western Onsite revenue increased 8% compared to Q4 2011. The growth was driven by U.S. onsite projects including our multi-year arrangement in the U.S. to process slop oil emulsions, and increased market demand for our industrial onsite services in western Canada. Drill site utilization rates declined in the quarter over prior year. Canadian utilization was negatively impacted by a 28% decline in active rigs in western Canada. U.S. utilization improved 9% from Q4 2011 due to the deployment of new and existing equipment to more active areas.
For the year ended December 31, 2012, Western Onsite revenue increased 17% compared to 2011 with contributions from onsite projects in the U.S. and industrial onsite services in western Canada. In the third quarter, we entered into a new multi-year arrangement in the U.S. to process slop oil emulsions on a customer's site in the Bakken. The utilization rate for drill site equipment was down 9% compared to 2011.
Three months ended Year ended December 31, December 31, 2012 2011 % change 2012 2011 % change----------------------------------------------------------------------------Equipment Utilization Canada 36% 68% (47) 41% 52% (21) U.S. 62% 57% 9 61% 62% (2) Combined 51% 62% (18) 52% 57% (9)Average equipment available 211 206 2 215 200 8----------------------------------------------------------------------------
Eastern Onsite
Eastern Onsite revenue is derived from:
-- onsite service in eastern Canada, including: industrial cleaning; centrifugation; and dredging and dewatering; and-- a fleet of specialized vehicles and equipment for emergency response and onsite processing.
Eastern Onsite services a broad range of industries in eastern Canada; however, these industries are sensitive to the state of the economy in these regions.
