High Arctic has good Q3

The third quarter has turned out to be a good one for High Arctic Energy Services Inc. (TSX: HWO)

The third quarter has turned out to be a good one for High Arctic Energy Services Inc. (TSX: HWO)

The Red Deer-based oilfield equipment and service provider reported on Wednesday that it posted net earnings of $6.5 million for the three months ended Sept. 30, more than double the $3 million earned during the same period in 2011.

The company’s revenue for the quarter was $35.8 million, up 22 per cent from $24.9 million; and its earnings per basic share were 14 cents, double the figure from a year ago.

Net earnings for the year to date are $22.9 million, up from $10.2 million for 2011.

Consolidated revenue for the first nine months of the year are $35.8 million, as compared with $29.3 million.

High Arctic said in a release that its strong revenue growth in the third quarter was driven by increased activity in Papua New Guinea and the deployment of another drilling rig in Canada.

Among its proposed capital expenditures is a 5.8-acre parcel in Grande Prairie, where High Arctic plans to construct a regional office and support facility for a total cost of $5.4 million.

“We have continued to demonstrate our ability to grow revenue and EBITDA despite the challenging conditions in the Canadian industry,” said Bruce Thiessen, High Arctic’s CEO. “Looking ahead to 2013, we expect to continue to see our best investment opportunities in (Papua New Guinea) as the country continues to develop its energy reserves.”