Global Energy Services Ltd. (GLK - TSX Venture), announces the Board of Directors have approved the release of the June 30, 2008 financial reports.
Financial highlights to June 30, 2008
- Our production services segment had a second quarter income of $31,158; cost recoveries of $50,824 were reported in the corporate segment; which was offset by a loss of $405,133 in the communications division. This resulted in an overall net loss of $323,151 for the quarter ended June 30, 2008.
- On a six month basis, revenues in the communications segment have declined by 43 percent over the comparable period in 2007. Expenses of this segment have been reduced by a similar percentage, which allows for a return to profitable operations as drilling activity levels recover.
- On a six month basis, revenues in the production services segment have increased by 27 percent over the comparable period in 2007. With the slow down in drilling activity, new opportunities are surfacing for optimizing production from existing wells using the Company's pumping technology. The revenue would have been much stronger if not for weather delays in second quarter. Based on current market demand and recently announced pump order, we expect to have a very strong third and fourth quarter for production services.
- The Company's working capital surplus at June 30, 2008 was $1,873,093. All the costs associated with the 2006/07 proposed acquisitions have been discharged or otherwise reflected in the working capital surplus number. As a result, funds from operations and available credit facilities should support continued growth in the production services segment in 2008.
"Despite the second quarter being the traditional weak quarter, our overall financial picture is improving and we have an adequate financial foundation to capture the opportunities ahead," said Derek Begin, President and CEO of Global Energy Services. "Our pumping solution is well positioned in the North American market as we continue to prove its ability to work in an ever increasing variety of oil and gas fields and basins. The fall drilling season is shaping up to be busier and we anticipate significantly better utilization rates on our communications equipment." -- www.cnxmarketlink.com
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