CALGARY, ALBERTA--(Marketwired - March 27, 2015) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
DIVERGENT Energy Services Corp. (TSX VENTURE:DVG) (the "Corporation") has released its financial results for the year ended December 31, 2014 and provides the following highlights of condensed financial information.
| RESULTS OF OPERATIONS |
| Selected Financial Information (Audited) |
| |
| (in 000's of USD $ unless otherwise stated) |
Three Months Ended Dec 31 |
|
Year Ended Dec 31 |
|
| |
2014 |
|
2013 |
|
2014 |
|
2013 |
|
| Revenue |
$ |
1,360 |
|
$ |
1,320 |
|
$ |
6,133 |
|
$ |
5,673 |
|
| Cost of sales |
|
(954 |
) |
|
(931 |
) |
|
(4,217 |
) |
|
(3,577 |
) |
| Gross Profit |
|
406 |
|
|
389 |
|
|
1,916 |
|
|
2,096 |
|
| Selling and administrative expense |
|
(1,230 |
) |
|
(964 |
) |
|
(3,961 |
) |
|
(3,176 |
) |
| Net finance income (expense) |
|
(1,420 |
) |
|
41 |
|
|
(3,728 |
) |
|
(341 |
) |
| |
|
(2,650 |
) |
|
(923 |
) |
|
(7,689 |
) |
|
(3,517 |
) |
| Loss before income taxes |
|
(2,244 |
) |
|
(534 |
) |
|
(5,773 |
) |
|
(1,421 |
) |
| Income tax recovery (expense) |
|
151 |
|
|
(198 |
) |
|
111 |
|
|
(445 |
) |
| Net earnings (loss) for the period |
|
(2,093 |
) |
|
(732 |
) |
|
(5,662 |
) |
|
(1,866 |
) |
| Net loss per share - basic |
$ |
(0.02 |
) |
$ |
(0.01 |
) |
$ |
(0.06 |
) |
$ |
(0.02 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
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| |
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|
|
|
| As at December 31 |
2014 |
|
2013 |
|
| Assets |
|
|
|
|
| |
Current assets |
$ |
8,478 |
|
$ |
11,691 |
|
| |
Long-term assets |
|
1,610 |
|
|
3,500 |
|
| |
|
10,088 |
|
|
15,191 |
|
| Liabilities |
|
|
|
|
|
|
| |
Current liabilities |
|
7,182 |
|
|
7,116 |
|
| |
Long-term liabilities |
|
128 |
|
|
156 |
|
| |
|
7,310 |
|
|
7,272 |
|
| Working capital ratio |
|
1.18 |
|
|
1.64 |
|
| Debt (long-term and debentures) to equity ratio |
|
25 |
% |
|
26 |
% |
OUTLOOK
The Corporation's activity levels have not been adversely affected by the decrease in the price of crude oil and natural gas in the past few months. The Corporation's services are focused on production optimization and operating expense reductions in mature fields with existing wells and are not directly affected by fluctuations in drilling activity. For 2015, we anticipate that gains in market share in our key operating areas will offset any reduction in overall industry activity levels.
In response to the uncertainty in the price of crude oil and natural gas, the Corporation has implemented a number of initiatives to reduce costs and streamline operations, including a reduction in discretionary spending that does not affect safety and operational performance. The Corporation's workforce is correctly sized for the anticipated activity levels, with a possible increase in staffing levels if the current growth pattern continues.
The overall 2015 outlook for each operating division is as follows:
- In the Pumps division we anticipate revenue to increase in our core business as our market share in the Powder River Basin in Wyoming continues to grow. We are currently the largest provider of ESP products and services for gas producers in the region, and we expect that position to continue. In Canada, we expect new revenues from our new Linear Electric Submersible Pumps (the "Pumps"). At this time it is too early to speculate on the rate of adoption of this new technology and how this will affect our 2015 revenues. We expect a number of Pumps to be sold from our operation in Wyoming, based on early indications of interest from our client base. In Mexico, we anticipate that Pemex will evaluate our new Pumps, however it is standard certification process in Mexico for products to be invoiced at the end of the test period, and we do not anticipate revenues to be generated by this test in 2015.
- In the Pipe division, the uncertainty in the price of crude oil and natural gas has affected our ability to secure the necessary credit facilities to pursue pipe projects in Mexico. At this time management does not foresee any activity in this segment for 2015.
- In the Construction Project Finance division we expect comparable activity levels as to 2014. Similar to our Pipe business in Mexico, our access to credit facilities will ultimately determine the number of projects undertaken in 2015.
The Corporation continues to develop long term opportunities within the Artificial Lift segment of the energy industry for the business beyond 2015. The business development team will continue to advance our permanent magnet motor and pump technologies, expanding the types of wellbores we are capable of servicing. We intend to leverage our five-year experience in Mexico to introduce our new Pump technology to Pemex, who has a rigid certification process for new technology - one that we have successfully navigated during the introduction of flexible steel pipe to the country. We will continue to focus on growing our core submersible pump business in Gillette, which will position Divergent for continued market share growth and expanded geographical presence.
Into 2015 and beyond, Divergent will remain focused on the long-term strategy of the Corporation. Divergent has the right people and service offerings to position the company for long-term growth and profitability combined with a strong balance sheet.
The Corporation's complete set of December 31, 2014 financial statements and corresponding management's discussion and analysis are available on the Corporation's website at www.divergentenergyservices.com and have been filed on the SEDAR website at www.sedar.com.
Headquartered in Calgary, Alberta, DIVERGENT Energy Services Corp. provides an array of specialized products and services that are used in the energy, mining, and industrial & agricultural water industries.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.