Iroc profits take a hit

A tough first quarter in the oilpatch translated into an 82 per cent drop in profits for Iroc Energy Services Corp. (TSX: ISC).

A tough first quarter in the oilpatch translated into an 82 per cent drop in profits for Iroc Energy Services Corp. (TSX: ISC).

The Red Deer-headquartered company recorded net earnings of $488,000 during the first three months of 2009, down from $2.7 million for the same period in 2008. Profit from continuing operations was $82,000, a slide of 96 per cent from the $2.1 million earned in the first quarter of 2008. Revenue from continuing operations was $14 million, down 28 per cent.

A news release issued by Iroc said the economic downturn and resulting low commodity prices hurt exploration and development activity. That produced “substantial pricing pressure and lower utilization in all oilfield-related services.”

“The global economic conditions and the uncertainty of commodity prices for oil and gas led to some of the lowest historical activity levels in the oilfield in Canada and around the world during the first quarter.

“The result of these factors has had a dramatic effect on oil and gas producers leading to many of our customers reducing their planned activity levels in exploration and development for fiscal 2009 with a focus on balance sheet preservation and matching spending with realistic cash flows.”

The release said Iroc was able to strengthen its financial position by focusing on its core businesses and selling assets, including its Oricomm and Envirocore divisions, which were sold during the quarter for a combined $8.44 million, including $6.3 million in cash that was used to reduce long-term debt.

The outlook remains uncertain, said the release, and the “declining utilization and competitive pricing environment will likely continue through the second quarter of 2009 and potentially longer, depending upon oil and gas prices.”

Iroc provides products and services to the oil and gas industry in three core areas: well servicing and equipment, downhole temperature and pressure monitoring tools, and rentals.

Just Posted

Councillors want to represent Red Deer at AUMA

City council approves endorsement

Cannabis smoke raises health concerns

Smoke Free Bylaw returns to Red Deer city council Sept. 4

Avid Penhold climber Catlin Hannah’s death a reminder of the dangers of scrambling

Hannah never returned from his Mount Smuts attempt on Aug. 12.

Children, elderly at risk as smoke from distant fires hangs over parts of B.C.

VANCOUVER — Thick smoke blanketing British Columbia communities far from any flames… Continue reading

WATCH: Medicine River Wildlife Centre opens new playground

The grand opening of the playground was Saturday morning

Police chiefs want new data-sharing treaty with U.S. as privacy questions linger

OTTAWA — Canada’s police chiefs are pressing the Trudeau government to sign… Continue reading

Pope on sex abuse: “We showed no care for the little ones”

VATICAN CITY — Pope Francis issued a letter to Catholics around the… Continue reading

Ottawa announces $189M to extend employment insurance for seasonal workers

ESCUMINAC, N.B. — Ottawa has announced $189 million for an employment insurance… Continue reading

Trudeau formally announces he’ll run again in next year’s election

MONTREAL — Justin Trudeau will run again in the 2019 federal election.… Continue reading

Smoke from B.C. wildfires prompts air quality advisories across Western Canada

VANCOUVER — More smoky, hazy air is expected to blanket much of… Continue reading

Anti-pipeline protesters released days before weeklong jail sentences end

MAPLE RIDGE, B.C. — Several pipeline protesters were released from a British… Continue reading

All eyes on Andrew Scheer as Conservative convention set for Halifax

OTTAWA — After a week of internal caucus squabbles, Conservative Leader Andrew… Continue reading

Trump says his White House counsel not a ‘RAT’ like Nixon’s

BRIDGEWATER, N.J. — President Donald Trump insisted Sunday that his White House… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month