MATRRIX Announces Third Quarter 2015 Results

• consolidated revenue of $1,090, down 88% from $9,438
• recorded net loss of ($4,951), down 585% from $1,021
• adjusted EBITDA of ($385), down 125% from $1,563
• consolidated gross margins of 31%, up 11% from 28%

NINE MONTHS ENDED 2015 SUMMARY (Compared with nine months ended in 2014)

• consolidated revenue of $3,584, down 86% from $25,026
• recorded net loss of ($8,149), down 790% from $1,181
• adjusted EBITDA of ($2,087), down 165% from $3,196
• consolidated gross margins of 8%, down 70% from 27%

OUTLOOK

The principal business strategy of MATRRIX is to purchase and deploy drilling technology in Canada and the United States, within acceptable levels of risk and rates of return, while actively evaluating opportunities to acquire existing drilling technology services businesses in those markets.  As of the date of this MD&A, 25 Systems are available for concurrent deployment to the field in western Canada.

Horizontal drilling is now extensively used to develop conventional and unconventional oil and liquids-rich natural gas plays in North America. There continues to be uncertainty over commodity prices and related oil and gas capital expenditure programs. This uncertainty is expected to continue through 2016. Macroeconomic factors continue to negatively affect drilling activity levels in North America, which is the Corporation's only operating region. Management of the Corporation is continuing to adjust cost structures in response to reductions in drilling activity and pricing, positioning the company for what is potentially a prolonged downturn. Given the Corporations' solid balance sheet with zero debt, $4,957 in cash and working capital of $6,345, MATRRIX will strive to improve its relative competitive position in this environment by continuing to refine systems and processes aimed at improving operational effectiveness and efficiency, while balancing costs relative to current and expected activity levels. The Corporation believes achieving this delicate balance will result in solid field execution and client retention, while strengthening its competitive position for the eventual improvement in industry activity levels when macroeconomic conditions are more favorable.

Canada

The Corporation continued to experience low activity levels and pricing pressure in the Canadian market for the first three quarters of 2015. It's likely that the Canadian oil and gas drilling industry will experience depressed activity levels for the balance of Q4 2015, and into Q1 2016, which is typically the quarter of the year with seasonally high activity. Western Canada continues to be saturated with an abundance of equipment that serviced peak 2014 activity levels, although the number of competitors is decreasing through attrition. Activity levels are concentrated amongst a few clients with strong, targeted drilling programs. While there continues to be promise of potentially large field developments of LNG for eventual export from Canada, Final Investment Decision (FID) for those projects, and infrastructure challenges continues to restrict market access for those clients. Therefore, the timing and likelihood of those projects is uncertain, as is the level of involvement of the Corporation. MATRRIX will continue to market its services to active current and potential customers in Canada to maximize revenue in this challenging environment, while strengthening its competitive position through selective focus on key operational and efficiency initiatives. The Corporation will manage costs where necessary, and manage equipment vendor relationships in a continuous effort to improve operational efficiency and preserve reasonable field margins.

US

The Corporation decided to exit the US market in Q3 due to poor activity levels, competitive pricing, and to focus on its core market in western Canada.

President Richard Ryan states: "The oil and gas services industry in North America continues to be challenged with respect to commodity prices and activity levels, a situation which is forecasted to continue for some time. MATRRIX is well positioned to weather an extended downturn as at the end of Q3 2015, we had zero debt, a strong working capital position of over $6 million, with almost $5 million in cash.

Despite having to share tough decisions around costs, our team is pulling together, motivated, and focused on building for the future. We're very pleased with D²ROX^TM, our proprietary software platform which is now firmly at the foundation of all things field operations related. At every stage of the delivery process, D²ROX^TM enables MATRRIX personnel to access and analyze critical drilling performance information with the express goal of enhancing operations for our Clients.

In addition, D²ROX^TM brings efficiencies to MATRRIX within the complexity of directional drilling wellbore engineering, job planning and execution, drilling optimization, asset tracking, and accounting. D²ROX^TM is scalable and multi-jurisdictional, therefore well suited for an operation that uses differing units of measure and is many times the size of our current operation. As the industry eventually returns to healthy activity levels, D²ROX^TM will allow us to drive efficiency into our operation, alleviating the need for a typical scale up of supporting infrastructure, while allowing MATRRIX and its Clients to continue to look for ongoing improvements in operational performance.

Our mindset is to expect the commodity price malaise to continue for some time, with MATRRIX adapting and delivering cost savings to those Clients driving for above average returns to their shareholders. Within an eventual rising commodity price environment and an operation of larger scale, we expect our fine tuning of systems, processes and technology to be clearly evident. In the meantime, we'll do what's necessary to protect our strong balance sheet and position the company for continued long term growth."

FINANCIAL HIGHLIGHTS

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
(000's CAD $)		2015	2014	% Change		2015	2014	% Change
Revenue		1,090	9,438	(88%)		3,584	25,026	(86%)
EBITDA	(i)	(4,130)	1,727	(339%)		(5,752)	3,209	(279%)
EBITDA per share
Basic		(0.13)	0.05	(360%)		(0.18)	0.10	(280%)
Diluted		(0.13)	0.05	(360%)		(0.18)	0.10	(280%)
Adjusted EBITDA	(ii)	(386)	1,563	(125%)		(2,087)	3,196	(165%)
Adjusted EBITDA per share
Basic		(0.01)	0.05	(120%)		(0.06)	0.10	(160%)
Diluted		(0.01)	0.05	(120%)		(0.06)	0.10	(160%)
Net Income (loss)		(4,952)	1,021	(585%)		(8,149)	1,181	(790%)
Net Income (loss) per share
Basic		(0.15)	0.03	(600%)		(0.25)	0.04 Werbung Mehr Nachrichten zur MATRRIX ENERGY TECHNOLOGIES INC Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 04:49 - PR Newswire Norges Bank - Form 8.3 - BHP Group Limited 03:00 - PR Newswire AECI Limited - Acceptance of awards of performance shares: Long-term Incentive Plan (LTIP) 25.04.24 - PR Newswire Rightmove Plc - Transaction in Own Shares Sehen Sie sich dieses Unternehmen an:    Foto: andreas160578 - Pixabay Rasanter Aufstieg, Branchenrevolution und Jahresumsatz von 50 Mio. $ weiterlesen» Anzeige wo-site-teaser-box-16764_site-teaser-box_2024-04-26_09%253A00%253A00_2024-04-27_09%253A00%253A59