OTCPK:AVEFF - Post by User
Comment by
zadmanon Oct 11, 2017 10:53pm
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Post# 26802616
RE:Top of mind
RE:Top of mindA couple points to consider with regards to your comment about equipment in yard in Calgary:
1. Revenue is 90% USA focused so what is happening in Calgary really don't matter all that much.
2. Yes the company is busy and yes gross revenues are back to pre crash levels but utilization rates of company owned equipment are still way way down. Herein lies the opportunity ahead. Can the co increase the utilization rates further via the refurbishment initiative to reduce reliance on third party contractors and thus materially improve margin? If they can, top line revenue growth won't even really be required for this thing to re-rate a fair bit higher. Of course if industry conditions improve and rig counts increase and pricing improves, well that's all just gravy for our mashed potatoes.
Zad