Calfrac revenue doubles as stronger oil prices drive U.S. fracking demand

Calfrac revenue doubles as stronger oil prices drive U.S. fracking demand
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CALGARY — One of Canada’s biggest oilfield well-fracking companies is reporting more than doubling its first-quarter revenue compared with the same period last year.

Calfrac Well Services says it had revenue of $583 million in the three months ended March 31, up 117 per cent over the $269 million it brought in a year earlier.

It says its net income was $1.9 million or one cent per share versus a loss of $21.7 million or 16 cents per share a year earlier.

CEO Fernando Aguilar says the results were mainly due to ongoing growth in its United States operations, driven by strong commodity prices and “very supportive” regulatory and fiscal environments there.

Calfrac reports in disclosure documents it increased its staff count in Canada, the U.S., Russia and Argentina to 3,800 as of the end of 2017, up from just 2,800 a year earlier.

The market for Calfrac’s services, which include hydraulic fracturing or fracking of oil and gas wells after they’ve been drilled to boost production, has been improving since the oil price shock of 2014 resulted in hundreds of crew layoffs and forced it to put many pieces of equipment in storage.

During the first quarter, Calfrac says it reactivated an eighth hydraulic fracturing unit in Canada and a 16th in the United States, while moving another unit from Canada to the U.S. to take advantage of brighter prospects there.

 

Companies in this story: (TSX:CFW)

The Canadian Press

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