IROC Energy Services Corp. (TSXV:ISC) finished 2010 on a strong note, with fourth quarter net income from continuing operations increasing to $2.1 million from a net loss of $400,000 in the same period of 2010.
The oilfield services company, whose operational headquarters are in Red Deer, had revenues from continuing operations equal to $20.8 million for the three months ended Dec. 31. That was 35 per cent higher than the $15.5 million reported for the same quarter a year earlier.
IROC’s revenues from continuing operations for 2010 were $674.4 million, up 31 per cent from $49 million in 2009. That translated into net income of $2 million, an improvement from the $10.9 million loss in 2009.
The company said in a release that its better numbers were the result of higher commodity prices and a greater emphasis on horizontal drilling in the Western Canadian oilpatch.
“The increase in activity witnessed during the last half of 2010 is expected to continue during 2011, given strong oil prices and the resulting intensity of oil based activity,” it added.
However, the company cautioned that scarce labour is a cause for concern.
IROC has three operating segments: drilling and production services, which is made up of Eagle Well Servicing and Aero Rental Services; technology services, which consists of Canada Tech; and corporate services.
In trading Monday, IROC shares were down four cents to $1.61 on the TSX Venture Exchange.