Overall, 2012 was a tumultuous year for the oilfield services industry in North America. The first half of the year, backed by relatively high oil prices and sustained activity levels in liquids-rich natural gas and unconventional oil plays, was a period of strong demand for drilling, completion and maintenance services. In the second half of 2012, demand levels dropped off dramatically in Canada as customers pulled back on their second half projects or deferred their winter programs into Q1 2013. Savanna's results tracked industry activity, although in Canada Savanna activity and results were ahead of industry in Q1 2012, and well below industry in Q4 2012. Overall, Savanna generated higher revenues, operating margins and EBITDAS(1) in 2012 relative to 2011 and maintained overall operating margin and EBITDAS(1) percentages. Additionally, the Company upgraded four telescoping doubles, enhancing their applicability to developing North American drilling demands, and completed the TDS-3000™ conversion program, effectively adding seven operating TDS-3000™ rigs to Savanna's fleet for Q1 2013.
Financial HighlightsThe following is a summary of selected financial information of the Company:-------------------------------------------------------------------------------------------------------------------------------------------------------- Three Months Ended Twelve Months EndedDecember 31 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------(Stated in thousands of dollars, except per share amounts) $ $ $ $----------------------------------------------------------------------------OPERATING RESULTSRevenue 168,242 181,480 (7%) 669,321 610,737 10%Operating expenses 128,110 127,792 0% 474,083 434,244 9%Operating margin(1) 40,132 53,688 (25%) 195,238 176,493 11%Operating margin %(1) 24% 30% 29% 29%EBITDAS(1) 29,336 43,071 (32%) 150,986 135,844 11% Per share: basic 0.34 0.51 (33%) 1.77 1.65 7% Per share: diluted 0.34 0.51 (33%) 1.76 1.64 7%Net earnings 3,129 16,742 (81%) 37,479 45,724 (18%) Per share: basic 0.04 0.20 (80%) 0.44 0.56 (21%) Per share: diluted 0.04 0.20 (80%) 0.44 0.55 (20%)--------------------------------------------------------------------------------------------------------------------------------------------------------CASH FLOWSOperating cash flows(1) 23,125 44,166 (48%) 135,180 140,546 (4%) Per diluted share 0.27 0.52 (48%) 1.58 1.70 (7%)Acquisition of capital assets(1) 45,393 42,449 7% 185,541 260,471 (29%)Dividends paid 5,707 - 100% 15,792 - 100%--------------------------------------------------------------------------------------------------------------------------------------------------------FINANCIAL POSITION AT DECEMBER 31 2012 2011 Change---------------------------------------------------------------------------- $ $----------------------------------------------------------------------------Working capital(1) 89,354 99,587 (10%)Capital assets(1) 1,119,764 1,033,241 8%Total assets 1,308,875 1,233,700 6%Long-term debt 245,820 207,637 18%--------------------------------------------------------------------------------------------------------------------------------------------------------
