High Arctic Energy Services Inc. (TSX: HWO) has started 2012 on a record note.
The Red Deer-based oilfield services company reported on Monday that its net earnings for the three months ended March 31 were $10.7 million, up 47 per cent from the $7.3 million recorded in the first quarter of 2011. High Arctic’s earnings per share for the quarter were 23 cents, up from 17 cents.
The company, which is active in Western Canada and in Papua New Guinea, had revenues of $42.2 million during the first quarter of 2012, up 17.5 per cent from $35.9 million a year earlier. Revenues from Canadian operations were $18.7 million, up 20 per cent from the first quarter of 2011; in Papua New Guinea, High Arctic generated $23.5 million in revenues, up 16 per cent.
“Our financial performance in the first quarter was strong across all business lines and both geographic regions,” said High Arctic CEO Bruce Thiessen in a release. “Our growth in Canadian revenue was achieved against a backdrop of weak natural gas prices and reflects the strong demand for High Arctic’s specialized well completion services and the benefit of improved pricing.”
The release said High Arctic’s equipment has proven useful for the long horizontal wellbores that are common in unconventional and shale gas plays. Despite low natural gas prices, activity in liquids-rich and unconventional shale gas plays should support the company’s operations, it added.
High Arctic provides specialized oilfield equipment and services.
In trading on the Toronto Stock Exchange Monday, shares in High Arctic closed at 1.35, up six cents.