During the first quarter of 2013, Phoenix USA's growth strategy focused on the Permian, Eagle Ford, Mississippian, and the Bakken basins. Phoenix was also active in the Marcellus, Utica, Niobrara, Barnett, and Woodford plays. In the Gulf Coast region, due to the strength of the operations, marketing, and management team, record activity levels were achieved in the 2013-quarter. In addition, the motor rental and full service operations in the Permian Basin continued to gain momentum.
Reportable segment income before tax for the first quarter of 2013 increased exponentially to $2.8 million from $31,000 in the 2012-quarter. The increase in profitability in the 2013-quarter resulted primarily from strong activity growth and higher day rates.
International(Stated in thousands of dollars) Three-month periods ended March 31, 2013 2012 % Change--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue 8,936 8,114 10Reportable segment profit before tax 1,644 2,025 (19)--------------------------------------------------------------------------------------------------------------------------------------------------------
For the three-month period ended March 31, 2013, international revenue increased by 10 percent to $8.9 million from $8.1 million in the 2012-period. International operating days increased by 9 percent from 601 days in the 2012-quarter to 653 days in the 2013-quarter. The Corporation generated 10 percent of its consolidated revenue from international operations in the 2013-quarter which is the same level as in the 2012-quarter.
Phoenix Albania continued to be the most active international area for the Corporation; however in the 2013-quarter, operating days decreased by 11 percent compared to the corresponding period in 2012, due to a rig being inactive as it required repair. Despite this, the level of regional revenue was sustained through the continued utilization of the Corporation's RWD technology. PHX Energy's joint venture, RigManager International Inc., continued to run its electronic drilling recorder systems on all active rigs. Since commencing operations in 2008, Phoenix Albania has successfully drilled in excess of 321 wells in the country and the Corporation presently has a 6 job capacity in Albania.
For the three-month period ended March 31, 2013, Phoenix Russia achieved 18 percent growth in operating days compared to the 2012-period. During the quarter, a new customer, who will likely further the utilization of the Corporation's RWD technology was added and a Moscow-based marketing person was hired. Both of which are expected to further the division's growth.
Phoenix Peru realized modest activity in the first quarter of 2013. Peru also gained a new customer during the 2013-period and the Corporation continues to share resources between this region and Colombia. Phoenix Peru currently has a job capacity of 4 full service jobs.
In Colombia, the Corporation continued to suffer lower than expected activity levels in the first quarter of 2013 and as a result, reorganized its management structure. However, current sales initiatives have led to the award of 2 rigs that are expected to start services in the second quarter of 2013 and the Corporation is exploring all options to provide future growth in this region. Phoenix Colombia currently has a 5 job capacity.
