Petrowest changes Directions
On April7, 2016 Petrowest released it's first quarter results.Not surprisingly the results were down from 2015 just as the commodity prices were down.This is a company that has been covered in several blogs in Blogdaleupsome.Click here for details of blogs on Blogdaleupsome(click here).But in summary,revenues were $186 million for the quarter a decrease of $83 million over 2014.EBITDA of $11 million compared to $35 million in 2014.While adjusted EBITDA showed a margin of 6% in comparison to 13% in 2014.But Petrowest has started to diversify a bit and now is getting a lot of business from areas other than the oil fields.see the 3 new acquisitions
Operational Details
Petrowest announced in it's quarterly report that it had sold a "bought deal" for $11.5 million of proceeds which is equal to about 29 million shares at $.35 per share.This has been a bit of a drag on the share price recently but now the transaction has closed.Funds will be used to pay down debt and for general corporate purposes.At the same time PRW tells us that it is getting 90% of it's adjusted EBITDA from non-energy projects.This includes road building and Site C civil construction and work on forestry projects.It is also awaiting and expecting work projects on the LNG project in British Columbia.
It's capital expenditures will be only $15 million versus $46 million in 2014 and it has reduced it's contractual obligations by $10 million to $23 million for the year.This has been done by returning underutilized equipment and renegotiating contractual agreements.PRW is still doing a little bit of site preparation work for oil and gas drilling but this minimal now.
Sharing the rent
This author has suggested that a possible suggestion is to take a backer to help pay debts and to increase revenues from Petrowest equipment.Click here to see Twitupdale April 25click here to see suggested new partners.Two possible suggestions are Pulse Data and Computer Modelling Group.Both are in Calgary and need to do field work to make revenues and could help to pay for PRW assets and equipment. And it is possible that one or both bought a number of shares in their recent share purchase.This would stabilize the share price and build a base to which PRW could add to when the oil price picks up and more oil and gas drilling begin.If PRW has picked up a new partner look for it to move back up to the $.50 to $.60 level in the late summer. use Blogdaleupsome for analysis of resource stocks; see recent analysis of Petrowest
Petrowest announced in it's quarterly report that it had sold a "bought deal" for $11.5 million of proceeds which is equal to about 29 million shares at $.35 per share.This has been a bit of a drag on the share price recently but now the transaction has closed.Funds will be used to pay down debt and for general corporate purposes.At the same time PRW tells us that it is getting 90% of it's adjusted EBITDA from non-energy projects.This includes road building and Site C civil construction and work on forestry projects.It is also awaiting and expecting work projects on the LNG project in British Columbia.
It's capital expenditures will be only $15 million versus $46 million in 2014 and it has reduced it's contractual obligations by $10 million to $23 million for the year.This has been done by returning underutilized equipment and renegotiating contractual agreements.PRW is still doing a little bit of site preparation work for oil and gas drilling but this minimal now.
Sharing the rent
This author has suggested that a possible suggestion is to take a backer to help pay debts and to increase revenues from Petrowest equipment.Click here to see Twitupdale April 25click here to see suggested new partners.Two possible suggestions are Pulse Data and Computer Modelling Group.Both are in Calgary and need to do field work to make revenues and could help to pay for PRW assets and equipment. And it is possible that one or both bought a number of shares in their recent share purchase.This would stabilize the share price and build a base to which PRW could add to when the oil price picks up and more oil and gas drilling begin.If PRW has picked up a new partner look for it to move back up to the $.50 to $.60 level in the late summer. use Blogdaleupsome for analysis of resource stocks; see recent analysis of Petrowest
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