News Story
North American Energy Partners Announces Results for the Three Months Ended September 30, 2009
Tuesday November 03, 2009 17:00:51 EST
North American Energy Partners Inc. ("NAEP" or "the Company") (TSX:NOA)(NYSE:NOA) today announced results for the three months and six months ended September 30, 2009.
Unless otherwise specified, all dollar amounts discussed are in Canadian dollars.
Consolidated Financial Highlights
Three Months Ended Six Months Ended Sept. 30, Sept. 30, (dollars in thousands) 2009 2008 2009 2008 ------------------------------- --------- --------- --------- --------- Revenue $ 171,110 $ 280,283 $ 318,213 $ 539,270 Gross profit $ 33,121 $ 44,281 $ 57,931 $ 91,871 Gross profit margin 19.4% 15.8% 18.2% 17.0% Operating income $ 18,569 $ 23,046 $ 28,341 $ 49,976 Net income (loss) $ 809 $ (1,222) $ 15,583 $ 17,874
Consolidated EBITDA (1) $ 31,755 $ 36,226 $ 51,340 $ 72,953 Capital spending $ 23,555 $ 16,177 $ 43,265 $ 75,526 Cash and cash equivalents $ 97,716 $ - $ 97,716 $ -
(1) For a definition of Consolidated EBITDA (as defined within the credit agreement) and reconciliation to net income, see "Non-GAAP Financial Measures" at the end of this release.
"We made good progress during the three months ending September 30, 2009, despite continuing tough market conditions," said Rod Ruston, President and CEO. "We increased margins over last year, won new contracts and the current quarter's operating performance improved from the previous quarter."
"In the oil sands, which represents our largest market, recurring services volumes returned to more typical levels as production ramped back up under our long-term contract with Canadian Natural and we increased work under our new three-year contract with Shell Canada. As expected, project development activity in the oil sands remained well below last year's levels but we are seeing encouraging signs that the climate for oil sands investment is improving," said Mr. Ruston.
"Results from both our Piling and Pipeline divisions reflect the new economic environment. Piling revenues and margins remain under pressure due to the slowdown in both oil sands development activity and commercial and industrial construction markets. Pipeline revenues, meanwhile, are not yet reflecting the benefit of new contracts, including the TransCanada maintenance contract announced last quarter and two recent small contract awards with Terasen Gas Inc. and Spectra Energy Corp. Although the Piling and Pipeline segments make an important contribution to revenue and gross profit when the right projects are available, it is important to remember that they are variable by nature and are readily downsized and operated at a low cost when market conditions are less favourable."
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