Trican Announces 2013 Russian Contract Update

Trican Announces 2013 Russian Contract Update 
CALGARY, ALBERTA -- (Marketwire) -- 01/14/13 -- Trican Well Service
Ltd. (TSX:TCW) is pleased to announce the results of the 2013 Russian
contract tendering season. Management is currently estimating 2013
revenue to increase by approximately 25%, as measured in Russian
roubles, relative to 2012.  
Customer interest in horizontal completions and multi-stage
fracturing is significantly increasing and is expected to represent
20% of Russian fracturing revenues in 2013 compared to 12% in 2012.
This is expected to improve equipment utilization and fits well with
Trican's completion tool service line.    
The estimated revenue increase is based on a 2% expected increase in
overall activity combined with a 23% expected increase in average
revenue per job. The expected increase in average revenue per job is
the combined result of the trend towards larger fracturing job sizes
in multi-stage completions, a shift in the sales mix toward more
fracturing work relative to coiled tubing and cementing and a modest
increase in pricing. Bidding for the Russian contracts was very
aggressive with a number of competitors attempting to gain market
share, which limited the year-over-year price increases obtained.   
A high rate of inflation in the Russian market and strong competition
continues to challenge the Russian operations profitability. That
being said, management is anticipating moderate improvements in the
operating income margin in 2013 as a result of a shift in our work
scope to higher margin work and multi-stage activity, including
completion tool revenue, and a continued focus on optimizing the
Russian operations' cost structure.  
The actual 2013 financial results for our Russian operations could be
impacted by revisions in customer budgets, exploration levels, the
price of commodities and general economic conditions in the Russian
market. 
In summary, management is pleased with the results of the 2013
tenders. Activity and pricing in the Russian market continue to
strengthen and there is a strong customer interest in the development
of oil and gas reservoirs utilizing state of the art technology.  
Headquartered in Calgary, Alberta, Trican has operations in Canada,
the United States, Russia, Kazakhstan, Australia and North Africa.
Trican provides a comprehensive array of specialized products,
equipment and services that are used during the exploration and
development of oil and gas reserves. 
FORWARD-LOOKING INFORMATION  
This document contains information that constitutes forward-looking
information and financial outlook within the meaning of applicable
securities legislation. This forward-looking information and
financial outlook is identified by the use of terms and phrases such
as "anticipate," "achieve", "achievable," "believe," "estimate,"
"expect," "intend", "plan", "planned", and other similar terms and
phrases. This information and outlook speaks only as of the date of
this document and we do not undertake to publicly update the
forward-looking information and financial outlook contained in this
document except in accordance with applicable securities laws. This
forward-looking information and financial outlook includes: 


 
--  The expectation that 2013 Russian revenue will increase by 25%, as
    measured in Russian roubles, compared to 2012; 
--  The expectation that horizontal completions and multi-stage fracturing
    is significantly increasing in Russia and is expected to represent 20%
    of Russian fracturing revenues in 2013; 
--  The expectation that the estimated revenue increase is based on a 2%
    expected increase in overall activity combined with a 23% expected
    increase in average revenue per job; 
--  The expectation that the increase in average revenue per job is the
    combined result of, the trend towards larger fracturing job sizes in
    multi-stage completions, a shift in the sales mix toward more fracturing
    work relative to coiled tubing and cementing and a modest increase in
    pricing;  
--  The expectation that the operating income margin will increase in 2013
    as a result of a shift in our work scope to higher margin work and
    multi-stage activity, including completion tool revenue, and a continued
    focus on optimizing the Russian operations' cost structure. 

 
Forward-looking information and financial outlook is based on current
expectations, estimates, projections and assumptions, which we
believe are reasonable but which may prove to be incorrect and
therefore such forward-looking information and financial outlook
should not be unduly relied upon. In addition to other factors and
assumptions which may be identified in this document, assumptions
have been made regarding, among other things: industry activity; the
general stability of the economic and political environment; effect
of market conditions on demand for the Company's products and
services; the ability to obtain qualified staff, equipment and
services in a timely and cost efficient manner; the ability to
operate its business in a safe, efficient and effective manner; the
performance and characteristics of various business segments; the
effect of current plans; the timing and costs of capital
expenditures; future oil and natural gas prices; currency, exchange
and interest rates; the regulatory framework regarding royalties,
taxes and environmental matters in the jurisdictions in which the
Company operates; and the ability of the Company to successfully
market its products and services.  
Forward-looking information and financial outlook is subject to a
number of risks and uncertainties, which could cause actual results
to differ materially from those anticipated. These risks and
uncertainties include: customers' completion of expected work
programs; fluctuating prices for crude oil and natural gas; changes
in drilling activity; general global economic, political and business
conditions; weather conditions; regulatory changes; the successful
exploitation and integration of technology; customer acceptance of
technology; success in obtaining issued patents; the potential
development of competing technologies by market competitors; and
availability of products, qualified personnel, manufacturing capacity
and raw materials, and Trican's successful performance under
contracts. In addition, actual results could differ materially from
those anticipated in the forward-looking information and financial
outlook provided herein as a result of the risk factors set forth
under the section entitled "Risk Factors" in our Annual Information
Form dated March 22, 2012.
Contacts:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266-0202
(403) 237-7716 (FAX)
ddusterhoft@trican.ca 
Trican Well Service Ltd.
Michael Baldwin
Vice President, Finance & CFO
(403) 266-0202
(403) 237-7716 (FAX)
mbaldwin@trican.ca 
Trican Well Service Ltd.
Gary Summach
Director of Reporting and Investor Relations
(403) 266-0202
(403) 237-7716 (FAX)
gsummach@trican.ca 
Trican Well Service Ltd.
2900, 645- 7th Avenue S.W.
Calgary, Alberta T2P 4G8
www.trican.ca
 
 
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