Q2: 68% increase in EbitdaCALGARY, Aug. 13, 2014 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)
("High Arctic" or the "Corporation") today announced its operating and financial
results for the three and six months ended June 30, 2014.
Highlights
* Adjusted EBITDA(1)(2) increased by 68% for the three months ended June 30,
2014 to $11.1 million (Q2 2013 - $6.6 million). For the six months then ended,
adjusted EBITDA was $26.2 million; a 36% increase over the first half of 2013
($19.2 million).
* In June, 2014, the appointments of a new CEO and President, International were
announced; both individuals bring significant international drilling experience
to High Arctic.
* In April, 2014, High Arctic signed a two year drilling services contract with
a large oil and gas operator in PNG that commences with the spud of a first
well, which is expected to occur in early 2015. In conjunction with the
drilling commitment, the Corporation completed the acquisition of two
heli-portable drilling rigs on July 28, 2014 (the "Acquisition").
* The Corporation closed its previously announced bought deal financing of $25.0
million resulting in the issuance of 5,051,000 common shares at $4.95 in July,
2014.
* High Arctic increased its monthly dividend to $0.015 per share in March, 2014,
a 20% increase from the previous monthly dividend amounts. The Corporation
continues to maintain a strong balance sheet with a trailing annual payout ratio
of 19%.
Commenting on the second quarter, Tim Braun, High Arctic's Chief Executive
Officer, stated: "High Arctic holds a unique position in Papua New Guinea, which
is one of the world's fastest growing energy economies. As the Corporation's
new CEO, I am excited about the growth this year at High Arctic and I believe it
reflects the Corporation's strong market position. I am confident the two new
heli rigs will be an example of continued growth prospects for High Arctic in
this market. The strengthening of our Canadian division also made an important
contribution to this exceptional quarter. I am pleased the Corporation has this
stable foundation on which to build."