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Dalmac Energy Reports Record Q2 and YTD Revenues



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By dquinton

Posted: Tuesday Dec 11 10:31:46AM 2012

Overwhelming majority of insiders buying energy services stocks

The Globe and Mail

Oil rigs are seen in Midland, Texas, in this photo from
2008. (JESSICA RINALDI /REUTERS)

Oil and gas services equipment stocks have fallen out of favour with
investors, but certainly not with the executives and directors who work within
the industry.

Insider buying in those companies is remarkably high, jumping over the 1000
per cent level late last month, according to INK Research. That means there
were more than 10 stocks in the group with key insider buying for every one with
selling.

  • Insider buying suggests energy stocks about to break out of funk
  • Corporate insiders feeling bullish on financial stocks
  • Globe Investor Tips How can I get Watchlist
    on a mobile device?

The indicator has come off a little over the last few days, now at 600 per
cent. But that’s still a very high number and worth noting given that corporate
insiders, on average, tend to make better calls on buying and selling shares
than individual investors.

The oil and gas equipment and services subindex of the TSX has tumbled in
recent weeks. Trading today near 1,866, it is just barely above this summer’s
lows near 1,800 and more than 13 per cent off its late September highs.

Corporate insiders clearly are going bargain hunting.

“Investors have been bailing on the stocks due to concerns over capital
spending by exploration companies,” noted Ted Dixon, CEO of INK Research.

He believes these concerns are probably short sighted.

“The ability to bring unconventional drilling targets into production will
require a team effort between the property developers and the technical hired
hands. The race to get more barrels out of the ground is heating up, not growing
colder.

“Unless Canadian oil and gas service companies have lost some sort of
technological edge that we are unaware of, the prospects for the group may be
more upbeat than investors assume,” he said.

The energy sector indicator, which encompasses much more than just the oil
and gas services stocks, continues to be high as well. At 309 per cent, there is
more than three stocks with key insider buying for ever one with selling.

Energy firms with the most insider buying, by value, over the past 60 days
are Crescent Point Energy, Penn West Petroleum, Pengrowth Energy and Poseidon
Concepts.

Overall, INK's sentiment indicator for all TSX-listed stocks is at 152.3 per
cent and has been trending up in recent weeks.

The indicators are derived by taking the number of stocks with buy-only
transactions over the last 60 days, and dividing that with the number of
sell-only transactions. The indicators ignore stocks that have both buying and
selling in an effort to give a more accurate reading.


By Josh_Kier

Posted: Wednesday Nov 28 2:52:40PM 2012

Transmitted by CNW Group on : November 26, 2012 07:46

 

DALMAC ENERGY Reports Record Q2 and YTD Revenues

 

YTD revenue up 33% / Net Income increased 50%

 

EDMONTON, Nov. 26, 2012 /CNW/ - Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce second quarter financial results for the three ("Q2'13") and six month ("YTD'13") periods ended October 31, 2012.

 

Selected Financial Information
         
(000's Cdn Dollars, except per share data) Q2'13 Q2'12 YTD' 13 YTD'12
         
Revenues 10,153 8,217 18,299 13,777
Gross Margin 3,046 2,599 5,227 3,972
Gross Margin % 30% 32% 29% 29%
EBITDAS 1,694 1,575 2,700 2,066
Net Income (before tax) 959 859 1,278 638
Net income 719 859 958 638
  Net income per share - basic 0.03 0.05 0.04 0.03
  Net income per share - diluted 0.03 0.04 0.04 0.03

 

Activity levels in Q2'13 continued on the same trajectory as noted in Q1 and resulted in record performance for the quarter as well as the year to date. Revenues for Q2'13 increased by 24% to $10.2M as compared to the same period in the previous year while YTD'13 revenues increased by 33% to $18.3M as compared to the same period last year.

 

The gross margin percentage remained constant at 30% for Q2'13 and 29% YTD'13. This was in comparison with 32% in Q2'12 and 29% YTD'12.

 

Net income before tax for Q2'13 increased to $959K, up 12% from Q2'12, while the YTD'13 net income before tax doubled to $1.3M as compared to YTD'12. In the current quarter, the Company recorded a future tax accrual of $241K (no such accrual was exercised in Q2'12). As a result of the tax accrual taken in Q2'13 the net income for the quarter was $719K as compared to $859K reported in Q2'12 while the net income for YTD'13 increased by 50% to $958K ($0.04/share) from the $638K ($0.03 per share) reported in the previous year.

 

With the completion in September of the previously announced $17 million senior secured financing, the Company's working capital ratio substantially improved going from 1:1 to 2.32:1. As at October 31, 2012, the company had positive working capital of $6.3 million and long-term debt, excluding finance lease obligations, of $8.7 million.

 

In both Q1 and Q2 of this fiscal year, Dalmac reported record revenues. Focusing on what we do best and stressing the importance of our customer's needs has been the touchstone of our operating philosophy. All our divisions are benefiting from the increased activity supported by firm commodity prices and driven by new technologies that are increasing oil and gas output. With the growing demand for horizontal drilling and multi stage fracturing, the Company anticipates increasing demand for our products and services through 2013 and beyond.

 

Drilling utilization rates are expected to continue at record levels for the winter drilling season and the forecast for next year is expected to continue on equally as strong. The Petroleum Service Association of Canada ("PSAC") is forecasting 11,400 wells to be drilled in 2013 and First Energy Capital Corporation has pegged that figure at 12,200. In both cased that is up from 11,250 wells drilled in 2012. About 70% of the wells drilled in 2013 will be horizontal wells which are much longer than vertical ones and the total of 22 million meters of drilling depth will be about equal to 2008 when 16,933 wells were drilled. In Alberta, the 2013 forecast for new wells is up 3% to 7,045. It is expected that the oilfield service activity will continue to be just as robust if not more in 2013 as it was in 2012.

 

Responding to the current surge of oilfield activity and production requirements, Dalmac is in the midst of purchasing about $6.5 million dollars of additional oilfield equipment. The Company is confident that the steps we are taking now will translate into higher revenues and earnings for Dalmac.

 

Conference Call - A conference call to discuss the results will be held today, November 26th at 1:00 pm EST, 11:00am MST. To participate in the conference please dial, 416-644-3414 local in Toronto, or toll free, 1-800-814-4859 and request the Dalmac Energy Conference.

 

We seek Safe Harbor.

 

SOURCE: Dalmac Energy Inc.


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