Calfrac Well Services reports fourth-quarter loss on lower revenue

CALGARY — One of Canada’s largest oil and gas well completion companies is reporting a loss in the fourth quarter of 2019 as demand for its services remains at a low ebb.

Using preliminary figures, Calgary-based Calfrac Well Services Ltd. says it will register a loss before income taxes of between $69 million and $74 million for the three months ended Dec. 31 on revenue of between $310 million and $325 million.

In the same period of 2018, the company, which has operations in Western Canada, the United States, Argentina and Russia, reported a net loss of $3.5 million on revenue of $499 million.

Calfrac announced two weeks ago its 2020 capital budget of about $100 million would be used mainly to maintain equipment, not buy new gear. Its capital budget was about $140 million in 2019.

The company has cut staff and is marketing fewer of its pressure pumping crews — which provide hydraulic fracturing or “fracking” services needed to enhance production from oil and gas wells — because of the low-demand, low-price environment.

The Canadian Association of Oilwell Drilling Contractors predicted in November that just 4,900 oil and gas wells will be drilled in Canada this year, less than half the 11,226 wells drilled in 2014.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19: One more death reported in central zone

Number of active cases has decreased by more than 200 since last week

EMS dispatch is being consolidated

Alberta Health Services says EMS 911 dispatch will be consolidated across the… Continue reading

Stolen truck crashes into Parkland Mall

A pickup truck rammed into a Parkland Mall store. Cpl. Michael Evans… Continue reading

Most Alberta students and staff will be required to wear masks in school this fall

Masks must be worn by older students when Alberta schools reopen this… Continue reading

Bard on Bower is cancelling its 2020 season

A recent rise in COVID-19 cases have inflamed public gathering concerns

Protestors for Indigenous Lives Matter gather in Wetaskiwin

Protestors gathered along 56 St Wetaskiwin, Alta. August 4, 2020 for Indigenous Lives Matter.

David Marsden: Back-to-school plan makes sense

Albertans are wise to propose ways to improve students’ return to classrooms… Continue reading

Piscotty hits A’s 2nd walkoff slam this year, beats Rangers

Piscotty hits A’s 2nd walkoff slam this year, beats Rangers

McDavid gets first playoff hat trick, Oilers beat Chicago 6-3 in NHL qualifiers

McDavid gets first playoff hat trick, Oilers beat Chicago 6-3 in NHL qualifiers

Triumphant return for retooled Marlins, who beat Orioles 4-0

Triumphant return for retooled Marlins, who beat Orioles 4-0

First-year Argos head coach Dinwiddie dealing with COVID-19 pandemic uncertainty

First-year Argos head coach Dinwiddie dealing with COVID-19 pandemic uncertainty

Aho, Reimer help Hurricanes beat Rangers 4-1 for sweep

Aho, Reimer help Hurricanes beat Rangers 4-1 for sweep

Emerging young stars stand out at MLS tournament

Emerging young stars stand out at MLS tournament

Leafs solve Korpisalo, but lose Muzzin as Toronto evens series with Columbus 1-1

Leafs solve Korpisalo, but lose Muzzin as Toronto evens series with Columbus 1-1

Most Read