CALGARY – Calfrac Well Services Ltd. (TSX:CFW) saw its fourth-quarter profit plunge 86 per cent as its revenue declined 25 per cent in the face of reduced activity and lower prices in the U.S. and Canadian oilpatch.
Calgary-based Calfrac, which provides services to the energy industry, said net income attributable to shareholders in the three months ended Dec. 31 fell to $11.2 million or 25 cents per diluted share.
That was down from $78.4 million or $1.78 per diluted share in the same 2011 period as revenue also fell to $367.5 million from $490 million.
Net income in the latest period included a $3.8-million foreign exchange gain, compared with a $1-million loss in the 2011 quarter.
The company said it was moving to a quarterly dividend of 25 cents per share from a semi-annual payout of 50 cents. The next dividend will be paid April 15 to shareholders of record on March 29.
Calfrac said the 25 per cent decrease in revenue was driven primarily by lower pricing in the United States combined with reduced activity in both Canada and the United States as customers adjust spending due to weak natural gas prices.
However, “the revenue decline in Canada and the United States was partially offset by strong growth in Calfrac’s Latin American operations,” it said.
For the full year, Calfrac reported net income of $97.1 million or $2.17 per diluted share on revenue of $1.59 billion. That was down 48 per cent from $187.5 million on revenue of $1.54 billion in 2011.