Calfrac Well Services Ltd. (TSX:CFW) says more oil activity and improved pricing in both Canada and the U.S. helped lead to record fourth quarter revenue and millions more in profits in its fourth quarter. The company’s net income was $19.4 million for the quarter, rising from $864,000 at the same time a year before. That amounts to earnings per share of 45 cents, compared to two cents the year before.
The company, which supplies oil and gas explorers with tubing and drilling equipment, pulled in $268 million of revenues in its most recent quarter, compared to $173 million the year prior. In a statement, the company said more pressure pumping activity, and oil and liquids-rich natural gas work in western Canada and the U.S. played a part in the record revenues. Increased drilling activity drove up demand for its fracturing and coiled tubing services.
Calfrac also started fracturing operations in North Dakota during the quarter and signed agreements with two major oil companies.
It also incurred a $22.7 million pre-tax charge related to refinancing, which is due in 2015.
For the full year, profits were $53.8 million compared to a loss of $5.5 million in 2009. Revenue nearly doubled to $935.9 million from $591.5 million.