Welcome!

News Feed Item

Calmena Announces Year End 2013 Results and Borrowing Update

CALGARY, ALBERTA -- (Marketwired) -- 03/31/14 -- Calmena Energy Services Inc. (TSX: CEZ) -

YEAR END 2013 RESULTS

Calmena Energy Services Inc. ("Calmena" or the "Company") announces its financial results for the years ended December 31, 2013 and 2012 and borrowing update. All figures are reported in Canadian dollars unless otherwise stated. Our audited consolidated financial statements and related management's discussion and analysis for the period will be filed separately on SEDAR (www.sedar.com), which should be reviewed in conjunction with this press release.

SELECTED FINANCIAL INFORMATION

The tables below provide a summary of Calmena's financial and operating results as at December 31, 2013 and 2012 and for the years ending December 31, 2013 and 2012.


                                                    Year ended December 31,
($ thousands, except per share amounts)                    2013        2012
----------------------------------------------------------------------------
Revenue                                                  98,627     163,924
EBITDAS(i)                                               (2,789)     14,664
Net loss for the period                                 (67,931)    (11,128)
Funds flow (used) from operations(i)                     (3,397)     14,323
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net loss per share - basic and diluted                    (0.23)      (0.04)
Funds flow from operations per share - basic and
 diluted(i)                                               (0.01)       0.05
----------------------------------------------------------------------------

(i) see non-GAAP measures section of this release for a description of this term.


                                                  December 31,  December 31,
($ thousands)                                             2013          2012
----------------------------------------------------------------------------
Total assets                                           132,578       230,328
Borrowings and debt, net of cash                        40,111        59,289
Shareholders' equity                                    71,878       129,763
----------------------------------------------------------------------------

2013 HEADLINES


--  For the year ended December 31, 2013, the Company recorded:
    --  Revenue of $98.6 million and EBITDAS of negative $2.8 million
        compared to revenue of $163.9 million and EBITDAS of $14.7 million
        for the comparable period in 2012. The largest decrease in revenue
        and EBITDAS was in Latin America, which resulted from the
        terminations of drilling rig contracts in Mexico during the second
        quarter of 2013, as well as in Canada due to the sale of Calmena's
        wireline and contract drilling divisions in the second and third
        quarters of 2013. Additionally, in the second quarter of 2013,
        several onetime charges totaling $2.3 million for relocating a
        drilling rig from Colombia to Texas, disputed customer invoices in
        Colombia and Libya and a labour settlement in Libya affected both
        revenue and EBITDAS.
--  As part of the ongoing process to identify, examine and consider a range
    of strategic alternatives available to the Company with a view to
    enhancing shareholder value the Company completed several transactions
    and used the cash proceeds to reduce corporate debt:
    --  In April 2013, Calmena completed the disposition of its wireline
        technologies service line for cash proceeds of $12.1 million.
    --  During the second quarter of 2013 Calmena divested of certain
        Canadian contract drilling assets for total proceeds of $3.4
        million. Proceeds were comprised of $1.4 million in cash and $2.0
        million in settlement of other payables.
    --  In July 2013, Calmena completed the disposition of its remaining
        Canadian contract drilling assets for cash proceeds of $15.0
        million.
--  In late December, Calmena obtained contractual commitments on both of
    its drillings rigs in Libya for an additional term of six months.
--  Net debt(i) as at December 31, 2013 was $33.3 million compared to $53.5
    million as at December 31, 2012.

BORROWING UPDATE


--  On October 29, 2013 Calmena and its senior lender (the "Senior Lender")
    entered into an agreement (the "Agreement") whereby the Senior Lender
    agreed to forbear from demanding payment or enforcing security with
    respect to amounts owing by Calmena under its credit facilities ("Credit
    Facilities") with the Senior Lender until December 13, 2013, and the
    interest rate under the Credit Facilities was increased to the Bank's
    prime rate plus 4%.
--  On March 31 2014, Calmena and its Senior Lender entered into an
    extension agreement (the "Extension") pursuant to which the Senior
    Lender agreed to continue to forbear from demanding payment or enforcing
    its security under the Credit Facilities until the earlier of June 30,
    2014 or a default as defined in the Extension. Pursuant to the terms of
    the Extension, the Company paid $1.0 million to the Senior Lender as a
    permanent reduction of the amount owing under the Credit Facilities on
    signing the Extension. Also pursuant to the Extension, the Company is
    required, on or before April 30, 2014, to pay $9.0 million as a
    permanent reduction of the amount owing under the Credit Facilities or
    provide evidence satisfactory to the Senior Lender, by such date, that
    the Company has entered into one or more binding transactions to sell
    assets that will allow the Company to fund the required $9.0 million
    permanent reduction by May 31, 2014. The forbearance term may be further
    extended to July 31, 2014 if the Company provides evidence satisfactory
    to the Senior Lender, by June 30, 2014, that the Company has entered
    into one or more binding transactions to sell assets that will allow the
    Company to fully repay all amounts owing under the Credit Facilities by
    July 31, 2014.

(i) see non-GAAP measures of this report for description of this term.

OUTLOOK

In Canada, frac fluids management and equipment rentals is experiencing its seasonal peak in activity. During the first quarter we expanded frac fluids management into a new geographic market, establishing a new base of operations which we anticipate will increase revenue, improve product delivery times and reduce costs.

The first quarter in the US is to date significantly better for directional services than the same quarter in 2013 and we anticipate this trend will continue for the remainder of the year. We have narrowed our focus to our core midcontinent operating area, implemented cost reductions and have a number of directional kits tied to key customer rigs, all of which should result in improved EBITDAS during 2014.

In Mexico, Pemex awarded eight large projects to integrated service providers during the first quarter and we are seeing a significant increase in bidding activity and requests for quotes which we anticipate will result in improving utilization for our drilling rigs and directional equipment. While we expect improvements may start in the second quarter, the timing of initiation of operations on these projects is difficult to predict. In the first quarter of 2014, Calmena received notice that the contract for its one rig operating in Mexico will be terminated effective early in the second quarter.

In the first quarter of 2014 we made the decision to close down our operations in Colombia to reduce costs and re-deploy the assets to the more profitable US market. This shut down will be substantially complete early in the second quarter of 2014.

Calmena's Brazilian rigs are not currently contracted. The Company continues to explore strategic opportunities to divest of these rigs.

In late December, Calmena finalized contractual commitments on both of its drillings rigs in Libya for an additional term of six months. Late in the first quarter of 2014, Calmena received notice from its customer that operations on both drilling rigs were being suspended for an unspecified period as a result of the political environment. The political environment in Libya remains volatile and will significantly influence financial results.

The strategic review process is ongoing. We continue to explore alternatives to monetize under-utilized assets, and consider business combination opportunities.

ABOUT CALMENA ENERGY SERVICES INC.

Calmena is a diversified energy services company that provides well construction services to its customers operating in Canada, the United States, Latin America and the Middle East and North Africa. The common shares of Calmena trade on the Toronto Stock Exchange under the symbol "CEZ".

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements relating to Calmena's plans, strategies, objectives, expectations and intentions. Expressions such as "may", "anticipate", "expect", "project", "believe", "hope", "estimate", "intend", "will", "continue", "foresee", and "forecast" and similar expressions and statements are intended to identify forward looking statements. Such statements represent Calmena's internal projections, estimates or beliefs concerning, among other things, an outlook for Calmena's operations and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Calmena believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Calmena's actual results to differ materially from those expressed or implied in any forward- looking statements made by, or on behalf of, Calmena.

In particular, forward-looking statements included in this press release include, but are not limited to, statements with respect to: the timing for repayment of amounts owing under its Credit Facilities as set forth in the Extension and the timing for Calmena to enter into binding transactions to sell assets to fund the repayment of amounts owing under its Credit Facilities, the anticipated effect of expansion of frac fluids management into a new geographic market on revenue, product delivery times and costs; Calmena's expectations regarding directional services operations in the US for the remainder of the year, including effect on EBITDAS during 2014; anticipated effect of increased bidding activity and requests for quotes in Mexico on utilization for Calmena's drilling rigs and directional equipment; expected timing of close down of operations in Colombia; the Company's plans to continue to explore strategic opportunities to divest of its Brazilian rigs; the Company's expectations that its drilling rigs in Libya should contribute significant EBITDAS during 2014 and that the volatile political environment in Libya could have a significant impact on financial results; the Company's plans to continue to explore alternatives to monetize under-utilized assets, and consider business combination opportunities and the outlook for Calmena's operations, including the statements under the heading "Outlook" in this press release.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Calmena's control, including, but not limited to, the risk that the Company is unable to refinance or extend the deadline for repayment of the Credit Facilities; risk that the lender under the Credit Facilities will take further steps to demand payment under the Credit Facilities or enforce its security thereunder in the immediate future; failure to realize the anticipated benefits of strategic dispositions; failure to successfully negotiate and/or complete further transactions pursuant to the Company's strategic alternatives process; failure to achieve an increase in demand for the Company's drilling rigs and other product offerings; the impact of general economic conditions; industry conditions and changes in industry conditions; volatility of commodity prices; decreased demand for energy services; competition from other energy services providers; the lack of availability of qualified personnel or management; ability of Calmena to re-finance or extend the maturity date of its senior debt and generate positive cash flow; failure of counter parties to perform on contracts; failure to successfully negotiate new contracts or renew existing contracts; failure to successfully deploy rigs; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; risks associated with international operations, including, but not limited to, effect of civil unrest on the Company's operations in Libya; seasonality; loss of key customers; fluctuations in foreign exchange or interest rates and stock market volatility; supply and demand for oilfield services relating to the drilling, completion and maintenance of oil and gas wells as well as services related to, oilfield equipment rentals and production and ancillary services; liabilities and risks, including environmental liabilities and risks inherent in oil and natural gas operations; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; ability to access sufficient capital from internal and external sources; and the other risks considered under "Risk Factors" in our annual information form for the year ended December 31, 2013 which is available on www.sedar.com.

With respect to forward-looking statements contained in this press release, Calmena has made assumptions regarding, but not limited to: the implementation of the Company's business prospects and strategies; the ability of the Company to continue as a going concern and continue operations; current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; ability of Calmena to re-finance or extend the deadline for repayment of its senior debt; that the Senior Lender will forbear from taking further steps to demand repayment or enforcing their security under the Credit Facilities; ability of Calmena to renew existing contracts and enter into new contracts; rig utilization and pricing; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; industry conditions; supply and demand for oilfield services relating to the drilling, completion and maintenance of oil and gas wells as well as services related to oilfield equipment rentals and production and ancillary services; effects of regulation by governmental agencies; trends in Calmena's operations; and future operating costs.

Management has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide shareholders with a more complete perspective on Calmena's current and future operations and such information may not be appropriate for other purposes. Calmena's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Calmena will derive therefrom. Readers are cautioned that the foregoing lists of factors are not exhaustive.

These forward-looking statements are made as of the date of this press release and Calmena disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

NON GAAP MEASURES

The following measure is used within this release, but not recognized under GAAP. As a result, the method of calculation may not be comparable with other companies. This measure should not be considered alternatives to net loss and net loss per share as calculated in accordance with GAAP:

EBITDAS (Earnings before interest, income taxes, depreciation and amortization, other items of income and expense and share based compensation) - Management believes that EBITDAS as derived from information reported in the audited Consolidated Statement of Operations is a useful supplemental measure as it provides an indication of the Company's ability to generate funds by the Company's core business activities prior to consideration of how those activities are financed, the impact of foreign exchange, how the results are taxed, how funds are invested or how non-cash depreciation and amortization charges affect results. See the reconciliation of EBITDAS to net loss in the Company's management's discussion and analysis for the year ended December 31, 2013 and 2012.

Funds flow from continuing operations: Management believes that in addition to cash flows from operations, funds flow from operations is a useful supplemental measure because it provides an indication of the funds generated by the Corporation's principal business activities prior to the consideration of changes in working capital, and finance costs and income taxes paid. See the reconciliation of funds flow from operations in the Company's management's discussion and analysis for the year ended December 31, 2013 and 2012.

Net debt: Management believes that net debt is a useful supplemental measure because it provides an indication of the Company's leverage compared to liquid assets. Net debt is computed by taking current assets less current liabilities and long-term borrowings and debt. See the calculation of net debt in the Company's management's discussion and analysis for the year ended December 31, 2013 and 2012.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contacts:
Calmena Energy Services Inc.
John King
President and Chief Executive Officer
(403) 225-3879
(403) 366-2066 (FAX)

Calmena Energy Services Inc.
Peter Balkwill
Vice President, Finance & CFO
(403) 225-3879
(403) 366-2066 (FAX)
www.calmena.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...