Ceiba Energy Services Announces Record First Quarter Results
02 June 2014 - 11:00PM
Marketwired Canada
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Ceiba Energy Services Inc. ("Ceiba Energy" or the "Company") (TSX VENTURE:CEB)
has filed its Financial Statements and related Management's Discussion and
Analysis for the quarter and year ended March 31, 2014 which are available on
the Company's profile at www.sedar.com.
The Company is pleased to announce it has achieved record revenues for the
quarter and positive adjusted EBITDA in the three months ended March 31, 2014 as
compared to negative adjusted EBITDA for the same period in 2013. The revenue
recorded in the first quarter of 2014 increased by $498,866, or approximately
67% over reported revenues for the same period in 2013. The Company continues to
show improvement on financials, increasing gross margin by $286,793 over Q1
2013.
Results of Operations
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended March 31
2014 2013
----------------------------------------------------------------------------
Revenue $ 1,243,577 $ 744,711
Operating expenses $ 680,461 $ 468,388
----------------------------------------------------------------------------
Gross margin 563,116 276,323
----------------------------------------------------------------------------
Gross margin % 45% 37%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended March 31
2014 2013
------------------------------
Total Income (Loss) and Comprehensive Income
(Loss) for the Period (748,157) (957,270)
------------------------------
Add back:
Finance Costs 476,763 243,460
Depreciation 251,754 67,171
Deferred Tax Recovery (387,000) -
------------------------------
EBITDA (406,640) (646,639)
------------------------------
Add back:
Stock-based Compensation 122,094 273,695
Accretion 45,422 (29,910)
Transaction costs 254,406 38,438
------------------------------
Adjusted EBITDA 15,282 (364,416)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2014 First Quarter Highlights
-- Overall, the Company continued to successfully execute its growth
strategy, processing a record 76,800 m3 of fluid in the quarter, an
increase of 44,400 m3 (137%) over the same period in the previous year
and 29% higher than the previous quarter. The volume growth came from
the addition of custom treating at Chamberlain, continued incremental
productivity at Silver Valley for both emulsion treatment and produced
water disposal as well as the addition of the Cam-Star disposal wells in
February.
-- The Company continued to ramp up the Chamberlain custom treating
facility, which opened for business in the last week of November 2013,
processing 17,500 m3 of emulsion fluid in the quarter. Chamberlain was
somewhat impacted by cold weather in its start up months of operation
and is expected to continue to increase in volume throughput going
forward as the market develops.
-- The Company acquired Cam-Star Resources (1990) Ltd as a wholly owned
subsidiary in February, adding three Class II water disposal facilities.
The three sites are situated near Camrose, Bittern Lake and Ponoka,
Alberta.
-- The additional facilities, as well as continued incremental productivity
at Silver Valley, contributed to record revenue in the quarter of
$1,243,577, an increase of $498,866, or 67% over the same period in
2013. The incremental revenue was driven by volume growth in all revenue
streams and was slightly offset by temporary pipeline restrictions in
the quarter for oil sales at Silver Valley.
-- The Company achieved gross margin improvement of $286,793, or 104%, in
the first three months ending March 31 compared to the same period last
year and posted its first quarter of positive adjusted EBITDA,
successfully achieving this milestone in the execution of its growth and
profitability strategy
-- The Company completed a bought deal private placement of equity
including full exercise of over-allotment option for gross proceeds of
$9,197,700. Ceiba Energy will use the proceeds to execute the next phase
of its capital development plan for increasing revenue.
-- The Company successfully re-completed the Athabasca well. Initial
injection tests have indicated injection volumes of 600m3/day.
Future Plans and Outlook
The Company plans to continue to execute its growth strategy, preparing to open
its Athabasca water disposal site in late 2014 and to expand services at Silver
Valley and Chamberlain. Currently, the Silver Valley facility is running at
approximately 85% capacity and the Company believes that increasing capacity and
expanding revenue streams has the opportunity to double revenue given the robust
market activity in the region. The Company has budgeted approximately $8,000,000
for growth capital in 2014 and early 2015. The Company will also actively pursue
suitable locations to develop new facilities in under serviced or constrained
markets and evaluate potential acquisitions that are complimentary to the
existing asset base.
Demand for the Company's services is dependent on oil and gas production in
areas where it has facilities. Uncertainty in oil, gas and natural gas liquids
pricing may influence capital spending decisions relating to production and
ultimately demand for the Company's services. Demand for the Company's services
is also affected by seasonal variations in the Western Canadian Sedimentary
Basin. Any adverse changes in the global economy/markets may impact the oil
prices and hence the oil field industry in the region. This may impact the
ability of the Company to raise capital to support its future growth plans and
working capital needs.
About Ceiba Energy
Ceiba Energy (TSX VENTURE:CEB) provides specialized services to the energy
sector, specifically to companies involved in the exploration, extraction and
production of oil and natural gas in Western Canada. Ceiba Energy develops and
constructs facilities in proximity to its customers to provide treatment of
crude oil emulsion, terminalling, storage and marketing of oil and disposal of
production.
Reader Advisory
Certain information regarding Ceiba Energy in this news release, including
management's assessment of the expected time of completion of the Chamberlain
facility and the expected capacity of the Silver Valley facility, may constitute
forward looking statements under applicable securities laws and necessarily
involve risks including, without limitation, risks associated with facility
construction and oilfield services operations, general risks associated with oil
and gas exploration, development, production, marketing and disposal of waste,
loss of markets, environmental risks, competition from other service providers,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other factors
that could affect Ceiba Energy's operations and financial results are included
in reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). The forward-looking
statements or information contained in this news release are made as of the date
hereof and Ceiba Energy does not undertake any obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.
This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have not
been and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
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 the accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ceiba Energy Services Inc.
Ian Simister
President
isimister@ceibaenergy.com
Ceiba Energy Services Inc.
Todd Hanas
Investor Relations
Toll Free : 1-866-869-8072
thanas@ceibaenergy.com
www.ceibaenergy.com
Ceiba Energy Services Inc. (TSXV:CEB)
Historical Stock Chart
From May 2024 to Jun 2024
Ceiba Energy Services Inc. (TSXV:CEB)
Historical Stock Chart
From Jun 2023 to Jun 2024
