The emergence of horizontal completions and multi-stage fracturing continues to be a positive development in Russia. Approximately 12% of our 2012 fourth quarter Russian fracturing revenue was from work performed on horizontal wells, compared to approximately 3% in the fourth quarter of 2011. This is an important development for the pressure pumping industry in Russia, as the shift towards more unconventional drilling and completions is expected to increase the demand for horsepower in the region and place a larger emphasis on technology.
Relative to the Canadian dollar, the Russian ruble strengthened by 2% compared to the third quarter of 2012 and weakened by 3% compared to the fourth quarter of 2011. Changes in the ruble exchange rate impacted our Russian results as approximately 25% of our costs in Russia are denominated in Canadian dollars and other foreign currencies.
Fourth quarter operating results were strong in Kazakhstan for our two fracturing crews operating in the region. We continue to see improved results for our Algerian operations as year-over-year margins improved substantially. We are also continuing to grow and establish our cementing business in Australia and had solid revenue growth for our cementing service line during the fourth quarter of 2012. Despite the improvements in Algeria and Australia, financial results during the fourth quarter were below expectations in these regions.
Current Quarter versus Q4 2011
International revenue increased by 11% compared to the fourth quarter of 2011. Revenue per job increased by 42% as increased horizontal work in Russia led to increased fracturing and coiled tubing job sizes. Increased pricing and more fracturing revenue as a percentage of total revenue also contributed to the higher revenue per job. Job count decreased by 19% due largely to declines in Russian cementing and coiled tubing activity, offset slightly by an increase in fracturing jobs.
Fourth quarter materials and operating expenses as a percentage of revenue decreased to 85.2% from 91.5% compared to the fourth quarter of 2011. The decrease was due to improved operating leverage on our fixed cost structure and increased pricing. General and administrative costs increased by $0.3 million due largely to higher employee costs.
Current Quarter versus Q3 2012
Revenue for our international operations decreased by $4.3 million on a sequential basis. Job count decreased by 10% due to colder weather in Russia near the end of the fourth quarter that reduced industry activity levels. Revenue per job increased by 6% due largely to an increase in fracturing revenue as a percentage of total revenue and larger fracturing job sizes in Russia due to customer mix.
Materials and operating expenses increased to 85.2% from 81.8% due to reduced operating leverage on our fixed cost structure. General and administrative expenses increased by $0.6 million due primarily to higher employee costs.
CORPORATE----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Expenses Materials and operating 6,603 1.4% 6,408 0.9% 5,907 1.0% General and administrative 13,077 2.7% 9,545 1.4% 8,891 1.5% --------- --------- ---------- Total expenses 19,680 4.1% 15,953 2.3% 14,888 2.5%Operating loss(i) (19,680) (15,953) (14,888)--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report
