Industry peer...Here is a cut and paste from an industry peer on the conventional oil and gas market. Who knows... time will tell.
"Slowing activity throughout the conventional oil and gas sector over the past few quarters is taking its toll on many service providers", said Carl Johnson, Gemini's President and CEO. "We are seeing modest improvements in gross margins; however, the first quarter was impacted by reduced revenues. Sales efforts during the last two quarters have been successful in securing long-term contracts and are adding to our backlog of work. Although the benefits from these will not be realized until later in the year, they will provide the fuel to regain profitability and growth momentum. We are also encouraged by industry predictions that activity in the conventional oil and gas sector may begin to strengthen later in 2007. In the meantime, we are continuing to examine all of our costs in an effort to balance them with current and anticipated workloads to improve profitability."