CALGARY, ALBERTA — (Marketwired) — 08/11/16 — Critical Control Energy Services Corp. (TSX: CCZ) today reported its financial results for the three and six months ended June 30, 2016.
“To meet the uncertainty in the price of oil and gas and the current trends in industry, we have restructured our operations to ensure long term viability, ” said Alykhan Mamdani, President and CEO of Critical Control. “We continue to invest in our intellectual property which will form the engine of our future growth independent of industry conditions.”
Revenue
Gross margin
Earnings and net earnings
Outlook and Guidance
The decline in the price of oil and gas since late 2014 has materially impacted the Corporation–s revenue. Current industry conditions and the resulting lack of liquidity amongst producers has led to a material drop in non-recurring revenue which is expected to continue through 2016.
These same conditions have impacted the Corporation–s recurring revenue base with bankruptcies, well shut-ins, and competitive price concessions. Notwithstanding the forgoing, the Corporation has further penetrated its client base with its software solutions and reengineered its operations to reduce costs through efficiencies to maintain margins.
The Corporation expects recurring revenue from its Services division to continue being impacted for the remainder of 2016, given the lack of well site activity.
The Corporation–s internal business process reengineering and reorganization, commenced in 2015, continued into 2016. As of May 2016, the material portion of the Corporation–s planned changes have been completed. While some benefit is evident in the first half of 2016, the Corporation expects a greater benefit from these changes in the second half of 2016. Notwithstanding the forgoing, the Corporation–s growth will continue to be hindered by commodity prices. Commodity prices are unpredictable and a material change will affect management–s expectations for profitability.
About Critical Control
Critical Control provides solutions for the collection, control and analysis of measurement and operational data related to oil and gas wells across North America. We provide services to capture the data, cloud based software to visualize and manage it and the business intelligence to make quicker and more informed operational decisions.
Contacts:
Alykhan Mamdani
President & CEO
Tel (403) 705-7500
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