Enterprise Oilfield Exits '09 in Stronger Position
Enterprise Oilfield reported that 2009 was a very challenging year in the Western Canadian oil field service sector. Despite these challenges, Enterprise Oilfield was able to exit the year in a stronger position with a greatly improved balance sheet highlighted by a $4.3 million reduction of long term debt.
Enterprise Oilfield consolidated revenue of $27.7 million for the year ended December 31, 2009, compared to $39.8 million for the year ended December 31, 2008, a decrease of $12.1 million. For the three months ended December 31, 2009, the consolidated revenue of Enterprise amounted to $7.2 million, compared to $11.7 million for the same period last year. The decrease in annual revenue is attributed to fewer projects in the energy industry resulting from tight capital markets, decreased capital expenditures and lower natural gas prices. The Company had negative EBITDAS of $1.5 million and a net loss of $4.5 million for the year ended December 31, 2009, compared to EBITDAS of $5.2 million and a net loss of $12.3 million for the year ended December 31, 2008. The net loss in 2008 was largely due to a write down in goodwill. Negative EBITDAS for the three months ended December 31, 2009 was $1.1 million with a net loss of $2.2 million compared to EBITDAS of $1.0 million and a net loss of $13.6 million for the three months ended December 31, 2008. The negative EBITDAS is attributable to lower revenue and margins on energy sector projects and two charges totaling $0.6 million. Lower margins in the energy sector were offset by higher margins in the utilities and infrastructure sector.
The Company continues to monitor its overheads and reduce costs where necessary while maintaining the effectiveness of the operations. In 2009, the Company implemented cost controls, personnel reductions and wage rollbacks. Management also sold older, underutilized equipment. For the year ended December 31, 2009, proceeds from the sale of equipment totaled $1.9 million. These proceeds were used to continue the Company's aggressive repayment of long term debt and contribute towards operating capital. For the year ended December 31, 2009, the Company repaid $4.3 million of long term debt, with $0.9 million repaid in the fourth quarter alone.