High Arctic Energy Services Inc. (TSX: HWO) has announced a 2013 capital budget of $32 million.
The Red Deer-based oilfield equipment and services provider said in a release on Friday that this total includes $21 million in growth capital, $7 million for capital maintenance and approximately $4 million for construction of a new facility in Grande Prairie. It added that $6 million represents capital expenditures that were committed during the company’s 2012 fiscal year but not completed by year-end.
Most of the growth spending relates to High Arctic’s operations in Papua New Guinea. This includes investment in matting and other rental equipment, the purchase of support equipment like cranes, and the acquisition of specialized tools to increase operational efficiency.
High Arctic also said Friday that it expected consolidated revenue for the fourth quarter ended Dec. 31 to be between $37 million and $39 million — nearly identical to the same period of 2011. For the entire year, consolidated revenue is anticipated to range between $145 million and $147 million, which would be up significantly from 2011. The increase reflects investments made in Papua New Guinea, said the company.
High Arctic has domestic operations throughout Western Canada and international operations primarily in Papua New Guinea.