Petrowest Corporation Announces Second Quarter 2013 Financial Results and New Contract Award for Civil Division

Petrowest Corporation Announces Second Quarter 2013 Financial Results and New 
Contract Award for Civil Division 
CALGARY, Aug. 13, 2013 /CNW/ - Petrowest Corporation (TSX:PRW) announced today 
its consolidated financial results for the three and six month periods ended 
June 30, 2013 and the award of a new contract for the Civil division. 
Rick Quigley, Chief Executive Officer, stated that "the financial results for 
the second quarter of 2013 were significantly affected by unseasonably wet 
weather which affected all sectors in which we operate. There was substantial 
lost time as a result of these conditions. While these conditions affected 
revenue to a degree, the margins were impacted to a much greater extent, as 
additional costs were incurred to stop and recommence projects. The 
interruptions resulted in significant unrecoverable costs, including water 
removal and increased labour and machine time, negatively affecting margins. 
The wet weather impaired our ability to execute on most of our projects and 
caused the deferral of committed work to subsequent periods." Mr. Quigley 
added that he "remains encouraged by the amount of backlog currently in place 
and the activity levels in the areas we operate. We expect a return to 
historical margins with a return to normal operating conditions." 
FINANCIAL HIGHLIGHTS 
For the three months ended June 30, 2013 compared to the same period of 2012 
the Company: 


    --  Reported revenue of $49.3 million, an increase of $5.4 million
        compared to the same quarter in 2012
    --  Reported adjusted EBITDA margin of 8.0% compared to 18.5% in
        the same quarter in 2012

For the six months ended June 30, 2013 compared to the same period of 2012 the 
Company:
    --  Reported revenue of $95.2 million, an increase of $0.5 million
        compared to the same period in 2012
    --  Reported adjusted EBITDA margin of 10.4% compared to 16.7% in
        the same period in 2012
    --  Commenced construction on the $78.0 million Highway 43 twinning
        project

FINANCIAL RESULTS
                                                              
                         Three months ended       Six months ended June
                                    June 30                          30

(In thousands                2013      2012             2013      2,012
of Canadian
dollars)

Revenue                    49,272    43,900           95,198     94,674

Operating                (43,697)  (34,482)         (81,945)   (75,839)
expense

Gross margin                5,575     9,418           13,253     18,835

General and               (1,654)   (1,308)          (3,317)    (3,009)
administrative

Adjusted                    3,921     8,110            9,936     15,826
EBITDA

Amortization              (5,177)   (3,981)          (9,905)    (7,768)
of property
and equipment

Amortization                 (85)     (215)            (261)      (556)
of intangible
assets

Gain on                       267       120              164         19
disposal of
property and
equipment

Foreign                         -     (806)            (642)         15
exchange gain
(loss)

Operating                 (1,074)     3,228            (708)      7,768
profit (loss)

Net finance               (2,271)   (2,660)          (8,078)    (5,279)
expense

Loss of fair                  (2)      (13)              (6)      (270)
value of
financial
instruments

Net income              
(loss) and
comprehensive
income (loss)

before income
tax                       (3,347)       555          (8,790)      1,987

Deferred                     (22)     2,778            1,117      2,778
income tax
recovery
(expense)

Net and                   (3,369)     3,333          (7,673)      4,765
comprehensive
income (loss)
                                                                       

Total assets              134,682   111,735                            

Total                      64,373    56,177                            
long-term
liabilities

Net cash                    4,534     3,010            7,423           
generated from                                                  (1,385)
operating
activities

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and six month periods ended June 
30, 2013 and 2012 is set out above and includes the following non-IFRS 
financial measures: Gross margin, Gross margin percentage, adjusted EBITDA and 
adjusted EBITDA margin percentage. This information should be read in 
conjunction with the consolidated financial statements for the three and six 
month periods ended June 30, 2013 and the Company's Management, Discussion and 
Analysis ("MD&A"), available under the Company's profile on the SEDAR website 
at www.sedar.com. Further information respecting the non-IFRS financial 
measures is contained in the Company's MD&A.

CONTRACT AWARD

The Civil division is to provide aggregate crushing for the successful 
consortium bid for the next phase of the expansion of Highway 63, the main 
highway connecting Edmonton to Fort McMurray, Alberta. Work is expected to 
commence in the fourth quarter of 2013 and be completed in 2014. The value of 
the contract is expected to be $13.5 million.

OFFICE MOVE

Petrowest also announced that its corporate head office in Calgary will 
relocate to Suite 800, 407 - 2(nd) Street S.W., Calgary, Alberta, T2P 2Y3, 
effective September 1, 2013.

FORWARD LOOKING INFORMATION

This news release contains forward-looking statements regarding future levels 
of activity by the Company and by industry in the areas in which the Company 
operates. Forward-looking statements and information are based on Petrowest's 
current beliefs as well as assumptions made by and information currently 
available to Petrowest concerning anticipated business conditions and normal 
weather conditions. Although management of Petrowest considers these 
assumptions to be reasonable based on information currently available to it, 
they may prove to be incorrect. Forward-looking statements are subject to many 
external variables that are beyond Petrowest's control, such as fluctuating 
prices for crude oil and natural gas, changes in drilling activity, and 
general local and global economic, political, business and weather conditions. 
If any of these or other uncertainties materialize, the actual results of 
Petrowest may vary materially from those expected.

ABOUT PETROWEST

Petrowest is an Alberta corporation involved in pre-drilling and 
post-completion energy services as well as industrial and civil infrastructure 
projects, gravel crushing and hauling for non-energy sector customers. 
Petrowest's primary operations are based in the Grande Prairie area of 
northern Alberta and in northeastern British Columbia.



SOURCE  Petrowest Corporation 
Richard Quigley, President and Chief Executive Officer, at (780)  830-0881, or 
Ian Hogg, Vice President, Corporate Affairs, at (403)  384-0407, or Lloyd 
Wiggins, Chief Financial Officer, at (416) 572-2160,  orinfo@petro-west.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/August2013/13/c5748.html 
CO: Petrowest Corporation
ST: Alberta
NI: OIL ERN ORDER  
-0- Aug/13/2013 22:18 GMT
 
 
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