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High Arctic generated record revenues

High Arctic Energy Services Inc. (TSX:HWO) generated record revenues in 2014, the Red Deer-based company reported on Thursday.The company had revenues of $171.8 million for the year ended Dec. 31, up 13 per cent from $152.7 million in 2013. Net earnings were $28.2 million, a 15 per cent improvement over the preceding year; and net earnings per basic share were 54 cents, up from 51 cents.It paid dividends of $9.4 million during 2014.

High Arctic Energy Services Inc. (TSX:HWO) generated record revenues in 2014, the Red Deer-based company reported on Thursday.

The company had revenues of $171.8 million for the year ended Dec. 31, up 13 per cent from $152.7 million in 2013. Net earnings were $28.2 million, a 15 per cent improvement over the preceding year; and net earnings per basic share were 54 cents, up from 51 cents.

It paid dividends of $9.4 million during 2014.

High Arctic’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the year was also at an all-time high, at $49.3 million. That marked a 19 per cent increase over its 2013 EBITDA of $41.5 million.

Tim Braun, High Arctic’s CEO, said the company’s record performance in 2014 has set the stage for continued growth of its opertions in Papua New Guinea.

“Looking forward to 2015, amidst the global commodity price environment, we anticipate further EBITDA growth when our two new heli-portable drilling rigs commence operations in (Papua New Guinea) and we rationalize our infrastructure costs in Canada,” said Braun in a release.

For the final quarter of 2014, High Arctic’s revenues increased by 19 per cent over the same three-month period in 2013, to $46.2 million from $38.7 million. Net earnings were $8.5 million, up 33 per cent from $6.4 million; and net earnings per basic share were 15 cents, as compared with 13 cents a year earlier.

High Arctic’s adjusted EBITDA in the final quarter of 2014 was up six per cent, to $13.3 million from $12.5 million.

The release noted that the sharp decline in oil prices in the fourth quarter of 2014 significantly reduced oil field activities in most regions of the world, but High Arctic’s operations in Papua New Guinea felt less of an impact because the focus there is on liquefied natural gas.

High Arctic provides drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. Its largest operation is in Papua New Guinea.