Globe & MailLots of coverage today. GLTA
10:14 AM EDT, 06/21/2022 (MT Newswires) -- STEP Energy Services Ltd. (STEP.TO) said overnight Monday that it expects to book a record revenue in the range of $250.0 million to $265.0 million in the second quarter, up from $107.5 million posted a year ago.
The oilfield service company, which at last look surged 28.1% in early Tuesday trading, estimated adjusted EBITDA at $42.0 million to $50.0 million, rising from $11.7 million last year.
STEP said the projected higher earnings reflect strong demand for its services in Canada and the US.
"I am extremely proud of the performance of our professionals who go above and beyond every day to create the exceptional client experience that STEP is known for. These results are impossible without their dedication and hard work," President and COO Steve Glanville said.
STEP anticipates higher activity levels in Canada and steady activity in the US during the third quarter but flagged inflationary pressures and tight equipment supply. The company believes that the market is in balance and does not expect activating additional fleet capacity for the remainder of 2022.
Due to the expected improvement in profits, STEP has initiated discussions on the renewal of its credit facilities with its syndicate of lenders and expects to have the extension completed in due course.
The company will release its second-quarter results on Aug. 11.
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