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Trican Reports Third Quarter Results for 2013

Trican Reports Third Quarter Results for 2013 
CALGARY, ALBERTA -- (Marketwired) -- 11/05/13 -- Trican Well Service
Ltd. (TSX:TCW)  


 
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                                      Three months ended   Nine months ended
                                      Sept 30,  Sept 30,  Sept 30,  Sept 30,
($ millions, except per                                                     
 share amounts; unaudited)                2013      2012      2013      2012
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Revenue                                 $548.3    $593.2  $1,563.3  $1,727.5
Operating income(i)                       72.7      71.4     144.1     204.9
Profit / (loss)                            5.7      22.6     (25.5)     61.2
Earnings / (loss) per share   (basic)    $0.04     $0.16    ($0.17)    $0.42
                            (diluted)    $0.04     $0.16    ($0.17)    $0.42
Adjusted profit / (loss)(i)                9.7      24.7     (13.3)     68.4
Adjusted profit / (loss)                                                    
 per share(i)                 (basic)    $0.07     $0.17    ($0.09)    $0.47
                            (diluted)    $0.07     $0.17    ($0.09)    $0.47
Funds provided by                                                           
 operations(i)                            71.1      49.3     100.0     136.7
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Notes:                                                                      
(i) Trican makes reference to operating income, adjusted profit/(loss) and  
funds provided by operations. These are measures that are not recognized    
under International Financial Reporting Standards (IFRS). Management        
believes that, in addition to profit/(loss), operating income, adjusted     
profit/(loss) and funds provided by operations are useful supplemental      
measures. Operating income provides investors with an indication of         
profit/(loss) before depreciation and amortization, foreign exchange gains  
and losses, other income, finance costs and income tax expense. Adjusted    
profit/(loss) provides investors with information on profit/(loss) excluding
certain one-time charges and the non-cash effect of stock-based compensation
expense. Funds provided by/(used in) operations provide investors with an   
indication of cash available for capital commitments, debt repayments and   
other expenditures. Investors should be cautioned that operating income,    
adjusted profit/(loss), and funds provided by operations should not be      
construed as an alternative to net income/(loss) and cash provided          
operations determined in accordance with IFRS as an indicator of Trican's   
performance. Trican's method of calculating operating income, adjusted      
profit/(loss) and funds provided by operations may differ from that of other
companies and accordingly may not be comparable to measures used by other   
companies.                                                                  

 
THIRD QUARTER HIGHLIGHTS 
Consolidated revenue for the third quarter of 2013 was $548.3
million, a decrease of 8% compared to the third quarter of 2012. The
adjusted consolidated profit was $9.7 million compared to $24.7
million, and adjusted profit per share was $0.07 compared to $0.17
for the same period in 2012. Adjusted profit excludes a one-time tax
adjusted loss of $2.1 million relating to deposits held with an
insolvent vendor. Funds provided by operations were $71.1 million
compared to $49.3 million in the third quarter of 2012. 
Our Canadian operations generated quarterly revenue of $279.9 million
and operating income of $72.1 million during the third quarter of
2013. Canadian revenue decreased by 13% and operating margins
decreased by 530 basis points compared to the third quarter of 2012.
These declines were caused largely by a 20% average decrease in
overall Canadian pricing compared to the third quarter of 2012.
Canadian activity levels in the third quarter of 2013 were also
negatively impacted by wet weather during the first two weeks of the
quarter. Despite the decrease in year-over-year financial results,
Canadian fracturing and cementing demand were steady throughout most
of the quarter, led by increased demand in the Duvernay and strong
activity levels in key Canadian plays such as the Montney, Cardium
and Deep Basin. Canadian fracturing results also benefitted from a
large Horn River project that was completed during the quarter.
Strong activity levels for our Canadian fracturing and cementing
service lines were partially offset by weakness in coiled tubing
demand. The Canadian market remained very competitive during the
quarter but a modest price recovery of 4% was realized compared to
the second quarter of 2013. 
Our U.S. operations generated third quarter revenue of $183.1
million, a decrease of 8% compared to the third quarter of 2012 and
9% compared to the second quarter of 2013. In addition, U.S.
operating margins decreased sequentially by 110 basis points. The
U.S. pressure pumping market remained very competitive and
over-supplied with equipment during the third quarter of 2013.
Overall U.S. pricing stabilized somewhat and was down 2% compared to
the second quarter of 2013. Activity levels were down sequentially
and year-over-year for our operations in Oklahoma and we did not
perform any fracturing jobs in the Haynesville during the third
quarter of 2013. As a result, we have deactivated our Haynesville
fracturing crew until activity in the region improves or another
opportunity becomes available. Decreases in the Haynesville and
Oklahoma were partially offset by steady demand and activity levels
in the Marcellus, which led to sequential and year-over-year revenue
and operating income growth for our four Marcellus fracturing crews.  
Third quarter revenue for our International operations was $88.2
million, an increase of 22% compared to the third quarter of 2012.
Our Russian operations comprise the majority of our International
results, and revenue was up year-over-year in this region as an
increase in horizontal drilling and completions activity led to
increased customer demand in Russia. In addition, International
revenue benefitted from growth in Australia as well as growth for our
international completion tools division. We anticipate that 2013
annual Russian revenue will only be 10-15% higher compared to 2012
with operating margins that are consistent with 2012. This guidance
is down from previous disclosure due to lower than expected 2013
activity levels from certain large Russian customers. 
MANAGEMENT'S DISCUSSION AND ANALYSIS 
OVERVIEW 
Headquartered in Calgary, Alberta, Trican has operations in Canada,
the U.S., Russia, Kazakhstan, Algeria, Australia, Norway, Saudi
Arabia, and Colombia. Trican provides a comprehensive array of
specialized products, equipment and services that are used during the
exploration and development of oil and gas reserves. 


 
COMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)            
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                                                          Quarter-          
                                                             Over-          
Three months ended                % of               % of  Quarter       %  
 September 30,            2013 Revenue      2012  Revenue   Change  Change  
----------------------------------------------------------------------------
                                                                            
Revenue                548,345   100.0%  593,204    100.0% (44,859)   (7.6%)
Expenses                                                                    
  Materials and                                                             
   operating           449,412    82.0%  493,877     83.3% (44,465)   (9.0%)
  General and                                                               
   administrative       26,231     4.8%   27,972      4.7%  (1,741)   (6.2%)
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Operating income(i)     72,702    13.3%   71,355     12.0%   1,347     1.9% 
  Finance costs          9,370     1.7%    7,696      1.3%   1,674    21.8% 
  Depreciation and                                                          
   amortization         54,646    10.0%   37,270      6.3%  17,376    46.6% 
  Foreign exchange                                                          
   loss                  4,345     0.8%    1,651      0.3%   2,694   163.2% 
  Other loss             1,481     0.3%      806      0.1%     675    83.7% 
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Profit before income                                                        
 taxes                   2,860     0.5%   23,932      4.0% (21,073)  (88.1%)
Income tax (recovery)                                                       
 / expense              (2,848)   (0.5%)   1,284      0.2%  (4,132) (321.8%)
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Net Income               5,708     1.0%   22,648      3.8% (16,940)  (74.8%)
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(i) see first page of this report                                           
                                                                            
CANADIAN OPERATIONS                                                         
                                                                            
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($ thousands, except revenue per job, unaudited)                            
                    Sept 30,     % of  Sept 30,     % of  June 30,    % of  
Three months ended,     2013  Revenue      2012  Revenue      2013 Revenue  
----------------------------------------------------------------------------
Revenue              279,899            321,948            116,061          
Expenses                                                                    
  Materials and                                                             
   operating         201,217     71.9%  215,022     66.8%  121,446   104.6% 
  General and                                                               
   administrative      6,610      2.4%    7,095      2.2%    7,443     6.4% 
                   ----------         ----------         ----------         
  Total expenses     207,827     74.3%  222,117     69.0%  128,889   111.1% 
Operating income /                                                          
 (loss)(i)            72,072     25.7%   99,831     31.0%  (12,828)  (11.1%)
Number of jobs         6,082              6,368              3,096          
Revenue per job       45,393             50,140             37,046          
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(i) see first page of this report                                           
                                                                            
Sales Mix                                                                   
                                                                            
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Three months ended, (unaudited)      Sept 30,       Sept 30,       June 30, 
                                         2013           2012           2013 
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% of Total Revenue                                                          
Fracturing                                 70%            68%            62%
Cementing                                  18%            17%            14%
Nitrogen                                    4%             6%             5%
Coiled Tubing                               3%             4%             4%
Acidizing                                   2%             3%             3%
Industrial services                         2%             1%             9%
Other                                       1%             1%             3%
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Total                                     100%           100%           100%
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Operations Review  
Third quarter average Canadian rig count increased by 10% and the
number of wells drilled increased by 6% on a year-over-year basis.
Although an extended spring break-up impacted activity levels at the
start of the third quarter, increased industry activity led to steady
demand for our fracturing and cementing service lines in Canada. The
number of third quarter fracturing jobs performed increased by 11%
and cementing jobs increased by 2% compared to the third quarter of
2012. The strength in fracturing and cementing was partially offset
by weaker coiled tubing and acidizing demand due to increased
competition for these service lines. 
Canadian fracturing activity benefitted from a Horn River project
that was completed during the third quarter of 2013. The six-week
project exceeded our efficiency targets as we completed 6.8 fracs per
day, which compared to 6.3 fracs per day performed during the 2012
project and 4.4 fracs during the 2011 project. We believe we are well
positioned in the Horn River and will benefit when activity increases
in this region.  
Canadian third quarter fracturing results also benefitted from
increased activity in the Duvernay. Fracturing work performed in the
Duvernay represented 16% of total third quarter Canadian fracturing
revenue compared to 6% in the third quarter of 2012. We have worked
with several customers in this region to date, and believe we are
well-positioned to capitalize on the growth of this play as it
develops over the next several years.  
Canadian pricing levels improved sequentially by 4% but were 20%
lower than the third quarter of 2012 and 6% below the first quarter
of 2013. The Canadian market remained competitive in the third
quarter and opportunities to increase price were limited. 
We were pleased with the progress made by our Canadian Completion
Tools Division during the third quarter of 2013. We continue to
integrate this division into our Canadian operations and are seeing
good customer acceptance of the tools and technology thus far. We
expect the Completion Tools Division to have a more meaningful impact
on Canadian financial results during 2014.  
Q3 2013 versus Q3 2012 
Canadian revenue decreased by 13% on a year-over-year basis. Revenue
per job decreased by 9% due to a 20% decrease in price, offset
partially by an increase in fracturing revenue relative to total
revenue and an increase in fracturing job size. The job count
decreased by 5% as an increase in fracturing and cementing activity
was more than offset by a decrease in coiled tubing activity. Lower
coiled tubing demand also had a negative impact on our nitrogen and
acidizing job count as these service lines are closely correlated
with coiled tubing.  
Materials and operating expenses increased to 71.9% of revenue
compared to 66.8% of revenue in the same period of 2012. Lower
pricing led to reduced operational leverage on our fixed cost
structure; however, the impact of lower pricing was partially offset
by product cost reductions for guar and sand, and cost cutting
measures implemented during 2013.  
General and administrative costs decreased by $0.5 million, as lower
profit sharing and employee based expenses were partially offset by
an increase to share-based expenses. The increase in share-based
expenses was due to an increase in the size of plan combined with a
year-over-year increase in the volume weighted average share price
used to calculate the share-based liabilities. 
Q3 2013 versus Q2 2013 
Canadian revenue increased by 141% sequentially due to the expected
rise in industry activity as spring break-up conditions subsided
early in the third quarter. Higher activity led to a 96% sequential
increase in the Canadian job count. Revenue per job increased by 23%
due to an increase in fracturing revenue relative to total revenue,
an increase in fracturing job sizes, and a 4% increase in price.
Third quarter industrial services revenue remained relatively
consistent on a sequential basis but declined as a percentage of
total revenue due to the increases in the other service lines.  
Materials and operating expenses decreased to 71.9% of revenue
compared to 104.6% of revenue in the second quarter of 2013. The
margin improvement was largely due to higher revenue, which led to
increased leverage on our fixed cost structure. General and
administrative costs decreased by $0.8 million due to lower
share-based costs and bad debt expenditures. Share-based expenses
decreased due to a sequential decline in the volume weighted average
share price used to calculate the share-based liabilities. 
UNITED STATES OPERATIONS  


 
----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)                            
                      Sept 30,    % of  Sept 30,    % of   June 30,    % of 
Three months ended,       2013 Revenue      2012 Revenue       2013 Revenue 
----------------------------------------------------------------------------
Revenue                183,080           198,881            201,538         
Expenses(i)                                                                 
 Materials and                                                              
  operating            170,862    93.3%  216,283   108.8%   186,795    92.7%
 General and                                                                
  administrative         6,541     3.6%    5,768     2.9%     6,246     3.1%
                     ----------        ----------         ----------        
 Total expenses        177,403    96.9%  222,051   111.7%   193,041    95.8%
Operating income /                                                          
 (loss)(ii)              5,677     3.1%  (23,170)  (11.7%)    8,497     4.2%
Number of jobs           2,284             1,861              2,208         
Revenue per job         80,437           106,962             92,096         
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(i) certain prior period expenses have been reclassified from materials and 
operating to general and administrative to conform to current period        
classification                                                              
(ii) see first page of this report                                          
                                                                            
Sales Mix                                                                   
                                                                            
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Three months ended, (unaudited)      Sept 30,       Sept 30,       June 30, 
                                         2013           2012           2013 
----------------------------------------------------------------------------
% of Total Revenue                                                          
Fracturing                                 88%            91%            90%
Cementing                                   8%             6%             7%
Coiled Tubing                               4%             3%             3%
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Total                                     100%           100%           100%
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Operations Review 
Third quarter U.S. industry activity levels were relatively flat
compared to the second quarter of 2013 and the U.S. pumping market
remained very competitive and substantially over-supplied. We
continued to see pricing pressure across all of our U.S. operating
regions as pricing decreased by 2% sequentially and by 10% compared
to the third quarter of 2012. 
Revenue and operating income increased sequentially for our Marcellus
base during the third quarter. Four fracturing crews were active in
the Marcellus and demand was strong throughout most of the quarter,
although activity levels declined near the end of the quarter as some
of our key customers reduced activity levels in the region. The
increased Marcellus activity was more than offset by declines for our
crews operating in the Haynesville and Oklahoma regions. Haynesville
activity levels continued to be weak due to low natural gas prices
and our fracturing crew in this region was inactive during the third
quarter. Activity levels in Oklahoma were negatively impacted by low
gas prices as well as reduced activity levels for several key
customers operating in the region. 
The Permian, Eagle Ford and Bakken continued to be the most active
U.S. plays, although these areas remained very competitive and
over-supplied with fracturing equipment throughout the quarter.
Utilization for our two Eagle Ford fracturing crews remained stable
and the utilization of our Permian and Bakken crews increased on a
sequential basis. Despite the improvements, utilization for our
Bakken and Permian fracturing crews remained below expectations. We
continue to focus on expanding our customer base to increase
utilization of our equipment in these areas with the expectation that
this will meaningfully improve our U.S. operations' financial
results. 
We continued to make progress on cost cutting initiatives and
realized sequential reductions in product logistics and handling
expenses as well as other discretionary costs. The impact of the cost
reductions was more than offset by reduced operating leverage on our
cost structure due to lower sequential revenue, which led to the
decrease in operating margins compared to the second quarter of 2013. 
We continued to execute on our strategy to become a full service U.S.
pressure pumping company during the third quarter with sequential
growth for our U.S. cementing, coiled tubing and completion tools
service lines. U.S. completion tools revenue grew by 20% sequentially
and we continued to see good customer acceptance of our completion
tools technology in the U.S. market.  
Q3 2013 versus Q3 2012 
Third quarter U.S. revenue was down 8% compared to the third quarter
of 2012. Revenue per job decreased by 25% due to a 10% decline in
price, a decrease in fracturing revenue relative to total revenue and
a change in revenue mix by region. Jobs performed in the Haynesville
region are generally larger relative to other areas such as the
Marcellus, Permian and Bakken and the reduction in jobs performed in
the Haynesville region significantly contributed to the decline in
revenue per job. The job count increased by 23% due to increases in
the Marcellus and Eagle Ford plays combined with increased cementing
and coiled tubing activity. These increases were partially offset by
decreases in the Haynesville and Oklahoma regions.  
As a percentage of revenue, materials and operating expenses
decreased to 93.3% compared to 108.8% in the third quarter of 2012.
Cost decreases for guar, product handling and logistics, and other
discretionary items led to the improvement in margins. These
improvements were partially offset by reduced operating leverage on
our fixed cost structure due largely to pricing declines. 
General and administrative expenses increased by $0.8 million due
primarily to an increase in share-based employee expenses and an
increase in the U.S. bad debt provision. The increase in share-based
expenses was due to an increase in the size of the restricted share
unit employee plan combined with a year-over-year increase in the
volume weighted average share price used to calculate the share-based
liabilities. 
Q3 2013 versus Q2 2013 
Third quarter U.S. revenue decreased by 9% compared to the second
quarter of 2013. Revenue per job decreased by 13% due largely to a
change in revenue mix by region as less work was performed in the
Haynesville region on a sequential basis. A decrease in fracturing
revenue relative to total revenue and 2% sequential drop in price
also contributed to the decrease in revenue per job. The job count
increased by 3% due to an increase in work performed in the Marcellus
region combined with increases in cementing and coiled tubing
activity. These increases were partially offset by job decreases in
the Haynesville and Oklahoma regions.  
As a percentage of revenue, materials and operating expenses remained
consistent on a sequential basis. Lower revenue resulted in decreased
operational leverage on our fixed cost structure, which was offset by
continued progress made on cost cutting initiatives. General and
administrative expenses increased by $0.3 million due primarily to an
increase in the bad debt provision and insurance costs, which was
offset partially by a decrease in share-based expenses.  
INTERNATIONAL OPERATIONS 


 
----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)                            
                       Sept 30,    % of  Sept 30,    % of  June 30,    % of 
Three months ended,        2013 Revenue      2012 Revenue      2013 Revenue 
----------------------------------------------------------------------------
Revenue                  88,161            72,375            79,007         
Expenses                                                                    
  Materials and                                                             
   operating             71,523    81.1%   59,202    81.8%   70,723    89.5%
  General and                                                               
   administrative         4,176     4.8%    3,590     5.0%    4,637     5.9%
                      ----------        ----------        ----------        
  Total expenses         75,699    85.9%   62,792    86.8%   75,360    95.4%
Operating income(i)      12,462    14.1%    9,583    13.2%    3,647     4.6%
Number of jobs            1,232             1,057               962         
Revenue per job          69,180            64,873            76,235         
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(i) see first page of this report                                           
                                                                            
Sales Mix                                                                   
                                                                            
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Three months ended, (unaudited)      Sept 30,       Sept 30,       June 30, 
                                         2013           2012           2012 
----------------------------------------------------------------------------
% of Total Revenue                                                          
Fracturing                                 81%            80%            83%
Coiled Tubing                              10%            10%             8%
Cementing                                   5%             6%             5%
Nitrogen                                    2%             2%             2%
Other                                       2%             2%             2%
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Total                                     100%           100%           100%
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Operations Review 
Our International operations include the financial results for
operations in Russia, Kazakhstan, Algeria, Australia, Norway, Saudi
Arabia and Colombia. 
Our Russian operations comprise the majority of our International
results and Russian activity levels were strong during the third
quarter. Summer months are more active with long daylight hours and
favorable operating conditions, which allowed our Russian customers
to execute on their work plans. In addition, horizontal and
multi-stage fracturing activity has increased in Russia compared to
2012 and as a result, fracturing job size and activity levels have
increased.  
International completion tools revenue grew sequentially by 50%. Most
of this revenue was generated in the offshore Norwegian market and we
continue to see good customer acceptance of Trican's completion tools
in this region. Demand for completion tools also increased in Russia
on a sequential and year-over-year basis, in particular for our Burst
Port System (BPS(R)) tool.  
Third quarter financial results were strong for our two fracturing
crews in Kazakhstan as revenue and operating margins increased on a
sequential and year-over-year basis. Activity levels remained low in
Algeria during the third quarter, which resulted in weak financial
results for this region. In addition, we continue to see good growth
in cementing revenue in Australia but it did not have a significant
impact on our International results. 
No work was performed in both Saudi Arabia and Colombia during the
third quarter of 2013. We are currently deploying equipment into
these regions and expect to begin active operations in early 2014. We
have been awarded a contract in Saudi Arabia for one coiled tubing
unit and associated pumping and nitrogen equipment. We continue to
negotiate additional contracts in this area.  
Q3 2013 versus Q3 2012 
Third quarter 2013 revenue for our International operations increased
by 22% compared to third quarter of 2012. The year-over-year job
count increased by 17% due largely to increased activity for all
service lines in Russia. Favorable weather conditions and an overall
rise in unconventional activity contributed to the increase. Higher
year-over-year activity levels in Australia also contributed to the
job count growth. Revenue per job increased by 7% due to an increase
in fracturing job size in Russia and a slight increase in Russian
pricing.  
As a percentage of revenue, materials and operating expenses
decreased slightly to 81.1% from 81.8%. Increased operating leverage
from higher revenue was offset by increased product costs in Russia
and operating losses in Algeria. General and administrative expenses
increased by $0.6 million due largely to costs associated with the
international completion tools business, which did not exist in the
third quarter of 2012.   
Q3 2013 versus Q2 2013 
International revenue increased sequentially by 12%. The job count
increased by 28% due largely to increased activity for all service
lines in Russia. The increase in job count was offset by a 9% decline
in revenue per job caused by a decrease in fracturing revenue
relative to total revenue. A 2% sequential weakening of the Russian
ruble also had a slight negative impact on revenue per job.  
As a percentage of revenue, materials and operating expenses
decreased to 81.1% from 89.5%. Increased revenue from Russia,
Kazakhstan, and completion tools led to increased leverage on our
fixed cost structure. General and administrative expenses decreased
by $0.5 million due largely to a decrease in share-based expenses.
Share-based expenses decreased due to a sequential decline in the
volume weighted average share price used to calculate the share-based
liabilities. 
CORPORATE  


 
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($ thousands,                                                               
 unaudited)            Sept 30,    % of  Sept 30,    % of  June 30,    % of 
Three months ended,        2013 Revenue      2012 Revenue      2013 Revenue 
----------------------------------------------------------------------------
Expenses                                                                    
  Materials and                                                             
   operating              5,835     1.1%    5,907     1.0%    5,413     1.4%
  General and                                                               
   administrative         8,904     1.6%    8,981     1.5%    9,026     2.3%
                      ----------        ----------        ----------        
  Total expenses         14,739     2.7%   14,888     2.5%   14,439     3.6%
Operating loss(i)       (14,739)          (14,888)          (14,439)        
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(i) see first page of this report                                           

 
Q3 2013 versus Q3 2012 
Corporate expenses decreased slightly by $0.1 million on a
year-over-year basis. A decrease in administrative salaries was
offset by an increase in share based expenses.  
Q3 2013 versus Q2 2013 
Sequentially, corporate expenses increased by $0.3 million. There
were no significant variations of note in sequential corporate
expenses.  
OTHER EXPENSES AND INCOME 
Finance costs for the third quarter of 2013 increased by $1.7 million
compared to the third quarter of 2012. The increase was due to higher
debt balances combined with a higher average interest rate on the
outstanding debt.  
Depreciation and amortization expenses increased by $17.4 million
compared to the third quarter of 2012. An increase in the amount of
depreciable property and equipment caused the higher depreciation and
amortization expense.  
Foreign exchange losses of $4.3 million have been recorded for the
quarter ended September 30, 2013, compared to losses of $1.7 million
for the same period in 2012. This change is due to the net impact of
fluctuations in the U.S. dollar and the Russian ruble relative to the
Canadian dollar.  
Other loss, for the third quarter of 2013, was $1.5 million compared
to a loss of $0.8 million in the same period of 2012. The current
quarter includes a one-time $2.9 million loss relating to the
write-down of unsecured deposits with an insolvent vendor. In
addition, at September 30, 2013, Trican has $8.8 million in assets
under construction with this vendor included in property and
equipment in the statement of financial position. Trican believes
that it currently has legal title to these assets and is confident in
its ability to defend this position. The loss on the unsecured
deposits was partially offset by interest income earned on cash
balances and gains on asset sales. The loss recognized in the third
quarter of 2012 was due primarily due to losses on asset sales.  
INCOME TAXES 
An income tax recovery of $2.8 million was recorded during the third
quarter of 2013, as tax recoveries on taxable losses in the U.S. more
than offset tax expenses recorded in Canada and internationally. In
the third quarter of 2012, a tax expense of $1.3 million was incurred
as tax expenses in Canada and internationally more than offset tax
recoveries in the U.S. 


 
COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS ($ thousands, unaudited)         
----------------------------------------------------------------------------
                                                          Quarter-          
                                                             Over-          
Nine months ended                % of               % of   Quarter       %  
 Sept 30,                2013 Revenue       2012 Revenue    Change  Change  
----------------------------------------------------------------------------
                                                                            
Revenue             1,563,328     100% 1,727,535   100.0% (164,207)   (9.5%)
Expenses                                                                    
  Materials and                                                             
   operating        1,335,507    85.4% 1,447,890    83.8% (112,383)   (7.8%)
  General and                                                               
   administrative      83,770     5.4%    74,700     4.3%    9,070    12.1% 
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Operating income(i)   144,051     9.2%   204,945    11.9%  (60,894)  (29.7%)
  Finance costs        25,905     1.7%    22,123     1.3%    3,782    17.1% 
  Depreciation and                                                          
   amortization       152,318     9.7%   111,273     6.4%   41,045    36.9% 
  Goodwill                                                                  
   impairment, net      4,123     0.3%         -     0.0%    4,123       -% 
  Foreign exchange                                                          
   loss                 1,109     0.1%     3,876     0.2%   (2,767)  (71.4%)
  Other income         (2,043)   (0.1%)   (1,277)   (0.1%)    (766)   60.0% 
----------------------------------------------------------------------------
                                                                            
(Loss) / income                                                             
 before income taxes  (37,361)   (2.4%)   68,950     4.0% (106,311) (154.2%)
Income tax                                                                  
 (recovery) /                                                               
 expense              (11,872)   (0.8%)    7,781     0.5%  (19,653) (252.6%)
----------------------------------------------------------------------------
Net (loss) / income   (25,489)   (1.6%)   61,169     3.6%  (86,658) (141.7%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           
                                                                            
CANADIAN OPERATIONS                                                         
                                                                            
----------------------------------------------------------------------------
                                                                   Period-  
($ thousands, except revenue                                         Over-  
 per job, unaudited)          Sept 30,    % of  Sept 30,    % of    Period  
Nine months ended,                2013 Revenue      2012 Revenue    Change  
----------------------------------------------------------------------------
Revenue                        734,673           895,237             (17.9%)
Expenses                                                                    
  Materials and operating      564,136    76.8%  617,114    68.9%     (8.6%)
  General and administrative    20,922     2.8%   20,453     2.3%      2.3% 
                             ----------        ----------        -----------
  Total expenses               585,058    79.6%  637,567    71.2%     (8.2%)
Operating income(i)            149,615    20.4%  257,670    28.8%    (41.9%)
Number of jobs                  16,133            16,855              (4.3%)
Revenue per job                 45,036            52,781             (14.7%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           

 
Canadian revenue for the nine months ended September 30, 2013 was
down 18% compared to the same period in 2012. The number of wells
drilled in Canada during 2013 was similar to 2012 for the nine months
ended September 30. Our cementing activity was in-line with industry
activity levels as cementing job count for 2013 was consistent with
2012. Fracturing job count decreased slightly and coiled tubing,
nitrogen and acidizing job count decreased significantly on a
year-over-year basis. The Canadian coiled tubing market remains very
competitive, which has led to the activity declines for this service
line. Overall, the Canadian job count was down 4% on a year-over-year
basis. 
Canadian revenue per job was down 15% due largely to the 22% decrease
in price. The price drop was partially offset by an increase in
fracturing revenue relative to total revenue and an increase in
fracturing job size.  
Materials and operating expenses increased to 76.8% of revenue
compared to 68.9% of revenue for the same period in 2012. The
decrease in operating margins was due largely to the drop in revenue,
which led to lower operating leverage on our fixed cost structure.
Reductions in product and people costs helped to offset the impact of
lower margins. General and administrative costs are up slightly due
to higher share-based costs, offset partially by lower profit sharing
expenses. The increase in share-based expenses was due to an increase
in the size of plan combined with a year-over-year increase in the
volume weighted average share price used to calculate the share-based
liabilities. 
UNITED STATES OPERATIONS  


 
----------------------------------------------------------------------------
                                                                   Period-  
($ thousands, except revenue                                         Over-  
 per job, unaudited)         Sept 30,    % of  Sept 30,    % of     Period  
Nine months ended,               2013 Revenue      2012 Revenue     Change  
----------------------------------------------------------------------------
Revenue                       595,303           624,194               (4.6%)
Expenses(i)                                                                 
  Materials and operating     543,870    91.4%  632,537   101.4%     (14.2%)
  General and administrative   19,270     3.2%   15,255     2.4%      26.3% 
                            ----------        ----------         -----------
  Total expenses              563,140    94.6%  647,792   103.8%     (13.1%)
Operating income/(loss)(ii)    32,163     5.4%  (23,598)   (3.8%)    236.3% 
Number of jobs                  6,527             5,456               19.6% 
Revenue per job                91,633           114,712              (20.1%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) certain prior period expenses have been reclassified from materials and 
operating to general and administrative to conform to current period        
classification                                                              
(ii) see first page of this report                                          

 
U.S. revenue decreased by 5% for the nine months ended September 30,
2013, compared to the same period for 2012. Revenue per job decreased
by 20% due to a 9% decrease in year-over-year pricing, a decrease in
fracturing revenue relative to total revenue, and a change in revenue
mix by region. In particular, we have performed less work in the
Haynesville region during 2013, which generates larger revenue per
job compared to other plays. 
The job count increased by 20% due to an increase in cementing and
coiled tubing activity combined with higher utilization in the
Marcellus and Eagle Ford regions. These increases were partially
offset by decreased activity in the Haynesville and Oklahoma regions. 
As a percentage of revenue, materials and operating expenses
decreased to 91.4% from 101.4%. Cost reductions for guar and product
transportation and logistics contributed to the increase in operating
margins. These cost reductions were partially offset by lower
revenue, which led to reduced operating leverage on our cost
structure.  
General and administrative expenses increased by $4.0 million due to
increased share-based employee costs, insurance costs and profit
sharing expenses. The increase in share-based expenses was due to an
increase in the size of the restricted share unit employee plan
combined with a year-over-year increase in the volume weighted
average share price used to calculate the share-based liabilities. 
INTERNATIONAL OPERATIONS 


 
----------------------------------------------------------------------------
                                                                   Period-  
($ thousands, except revenue                                         Over-  
 per job, unaudited)          Sept 30,    % of  Sept 30,    % of    Period  
Nine months ended,                2013 Revenue      2012 Revenue    Change  
----------------------------------------------------------------------------
Revenue                        237,279           208,104              14.0% 
Expenses                                                                    
  Materials and operating      210,630    88.8%  181,027    87.0%     16.4% 
  General and administrative    12,661     5.3%   10,270     4.9%     23.3% 
                             ----------        ----------        -----------
  Total expenses               223,291    94.1%  191,297    91.9%     16.7% 
Operating income(i)             13,988     5.9%   16,807     8.1%    (16.8%)
Number of jobs                   3,108             3,056               1.7% 
Revenue per job                 73,438            63,919              14.9% 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           

 
Year-to-date International revenue increased by 14% compared to the
same period in 2012. The job count increased by 2% due to a slight
increase in Russian activity combined with an increase in Australian
activity. Revenue per job increased by 15% due to an increase in
fracturing revenue relative to total revenue and an increase in
fracturing job size in Russia.  
As a percentage of revenue, materials and operating expenses
increased to 88.8% from 87.0%. Increased leverage due to higher
revenue was more than offset by operating losses in Algeria,
increased product costs in Russia and start-up and integration costs
related to the international completion tools business.  
General and administrative costs increased by $2.4 million due
largely to costs associated with the international completion tools
business, which did not exist in 2012, growth in Australia, and an
increase in share-based expenses.  
CORPORATE  


 
----------------------------------------------------------------------------
                                                                    Period- 
                                                                      Over- 
($ thousands, unaudited)       Sept 30,    % of  Sept 30,    % of    Period 
Nine months ended,                 2013 Revenue      2012 Revenue    Change 
----------------------------------------------------------------------------
Expenses                                                                    
  Materials and operating        17,911     1.1%   17,211     1.0%      4.1%
  General and administrative     30,917     2.0%   28,721     1.7%      7.6%
                              ----------        ----------        ----------
  Total expenses                 48,828     3.1%   45,932     2.7%      6.3%
Operating loss(i)               (48,828)          (45,932)              6.3%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           

 
Corporate expenses increased by $2.9 million for the nine months
ended September 30, 2013, compared to the same period in 2012. The
increase was due largely to a rise in share-based expenses. 
OTHER EXPENSES AND INCOME 
For the nine months ended September 30, 2013, finance costs increased
by 17% due to higher average debt balances and an increase in average
interest rates compared to 2012. Depreciation and amortization for
the 2013 period-to-date has increased by 37% compared to same period
for 2012. A large portion of the equipment built as part of our 2011
and 2012 capital budgets became active, and subject to deprecation,
beginning in the middle of 2012. Therefore, our average depreciable
asset base is significantly larger in 2013 compared to 2012.  
Due to slower than anticipated growth in the region, Trican
identified impairment indicators for the goodwill balance related to
the Australian operations. As a result of the analysis performed,
Trican concluded that the recoverable value of the continuing
Australian operations was less than its carrying amount, and a
goodwill impairment charge of $6.4 million was recorded. Somewhat
offsetting the goodwill impairment is a gain of $2.3 million
recognized through the reversal of the performance-based contingency
payment owed to the former owners of the Australian entity. The
goodwill impairment write down was recognized during the second
quarter of 2013 and is included in the nine month period ending
September 30, 2013. 
Other income, for the nine months ended September 30, 2013, was $2.0
million compared to $1.3 million in the same period of 2012. Other
income for the current period includes a one-time loss of $2.9
million relating to a vendor insolvency issue. This loss was more
than offset by interest income earned on cash balances and gains on
asset sales.  
Foreign exchange losses of $1.1 million have been recorded for the
nine months ended September 30, 2013, compared to losses of $3.9
million for the same period in 2012. This change is due to the net
impact of fluctuations in the U.S. dollar and the Russian ruble
relative to the Canadian dollar.  
INCOME TAXES 
Trican recorded a total income tax recovery of $11.9 million for the
nine months ended September 30, 2013, versus a total income tax
expense of $7.8 million for the comparable period of 2012. The
increase in tax recovery is primarily attributable to lower earnings. 
LIQUIDITY AND CAPITAL RESOURCES 
Operating Activities 
Funds provided by operations was $68 million during the third quarter
of 2013 compared to $44 million for the third quarter of 2012. The
increase was due largely to less interest and taxes paid during the
quarter, which was offset partially by lower earnings.  
Investing Activities 
Capital expenditures for the third quarter of 2013 were $26 million
compared to $82 million for the third quarter of 2012. Capital
expenditures for the nine months ended September 30, 2013, were $87
million compared to $386 million for the same period in 2012. A
substantial decrease in our 2013 capital program compared to 2012 led
to a significant decline in capital expenditures.  
There were no significant changes made to our 2013 capital budget
during the third quarter of 2013. Capital expenditures for the fourth
quarter of 2013 are expected to be approximately $25 million to $35
million and approximately $75 million to $85 million of remaining
capital expenditures are expected to be carried forward into 2014.  
Financing Activities 
As at November 5, 2013, Trican had 148,914,753 shares and 9,397,122
employee stock options outstanding.  
During the nine months ended September 30, 2013, Trican repaid $71
million on its $500 million revolving credit facility. The balance of
the facility at September 30, 2013 was $208 million leaving $292
million of available debt under the facility. Trican also had $444
million of outstanding notes payable at September 30, 2013. On
October 17, 2013 Trican extended its revolving credit facility by an
additional year to 2017. 
During the first quarter of 2013, Trican received approval from the
Toronto Stock Exchange to renew the normal course issuer bid to
purchase its own common shares, for cancellation, for the one-year
period of March 8, 2013, to March 7, 2014. During the nine months
ended September 30, 2013, no common shares were purchased under the
normal course issuer bid. 
Trican currently pays a semi-annual dividend of $0.15 per share.
During the first quarter of 2013, $22.0 million in dividend payments
were made and during the third quarter of 2013, $22.3 million in
dividends were made.  
OUTLOOK 
Canadian Operations 
Based on discussions with our Canadian customers, we believe Canadian
demand for pressure pumping services in the fourth quarter will
increase over 2012 levels but decrease sequentially due to the normal
December slowdown experienced in our industry. Activity levels are
expected to be supported by growth in the Duvernay as well continued
strong demand in the Montney, Cardium and Deep Basin plays. 
Although the Canadian market remains very competitive, we expect
fourth quarter Canadian pricing to remain stable compared to the
third quarter of 2013. Furthermore, we do not expect Canadian pricing
to increase until activity levels and equipment utilization remain
strong over a sustained period of time. At the present time, the
Canadian market remains slightly oversupplied to balanced with
fracturing equipment. We will continue to monitor the Canadian
competitive environment and will look to increase pricing should the
opportunity arise. 
Our customers are currently finalizing their budgets for 2014;
however, early indications are that there will be a similar number of
wells drilled in 2014 compared to 2013. We believe there will
continue to be an increase in fracturing stages per well and an
increase in fracturing horsepower intensity per well. As a result, we
expect 2014 fracturing demand to increase compared to 2013. In
addition, we believe there will be more investment in the Duvernay
play and that Trican is well positioned to capitalize on growth in
this area. We anticipate that there will also be some level of LNG
gas related drilling next year but the majority of LNG related
drilling will occur past 2014.     
U.S. Operations 
Due to weak demand in the region, we have deactivated the Haynesville
crew and expect it to remain inactive until Haynesville activity
levels improve or another opportunity becomes available. With this
change, we are now operating fourteen U.S. fracturing crews. Our
Haynesville base in Longview, Texas will remain open as we continue
to offer cementing services from this location as well as support
fracturing operations in the Eagle Ford and East Texas. 
We expect the U.S market to remain over-supplied in the fourth
quarter of 2013 and into 2014. Pricing appears to have stabilized in
most of our U.S. operating areas and we expect it to remain stable in
the fourth quarter. However, given the current competitive landscape
in the U.S., we will continue to face the risk of downward pricing
pressure and do not expect U.S. pricing to improve over the next
several quarters. 
We expect there will be a seasonal slow-down in U.S. activity in the
fourth quarter during the Thanksgiving and Christmas holiday periods
and also as U.S. producers complete 2013 capital programs.
Furthermore, some of our key U.S. customers have indicated that their
activity levels will be reduced in the fourth quarter, in particular
for our customers in the Marcellus region. As a result, we expect
fourth quarter revenue and operating income to be lower on a
sequential basis for our U.S. operations; however, we have recently
secured a significant amount of fracturing work in the Marcellus
beginning in the first quarter of 2014 and initial indications from
our customers suggest that first quarter 2014 activity levels will
recover in many of our U.S. operating regions.   
In order to improve our U.S. financial results, we must continue to
focus on controlling and reducing costs, and more importantly,
increasing equipment utilization. In certain regions, we believe that
our technology will allow us to improve the utilization of our
fracturing crews, and in other areas, broadening and strengthening
our customer base will improve utilization. We have been pleased with
the growth of our cementing service line and will continue to focus
on diversifying our service offerings in the United States in the
upcoming quarter and into 2014. 
Our completion tool business in the United States has grown rapidly
this past quarter and we are very pleased with customer acceptance of
this technology. We will focus on improving logistics and reducing
our manufacturing costs to increase margins in this service line
going into 2014.  
International Operations 
We expect fourth quarter activity levels in Russia and Kazakhstan to
be down sequentially due to cold weather near the end of the fourth
quarter. Given this expectation, we anticipate that 2013 annual
Russian revenue will be 10-15% higher compared to 2012 with operating
margins that are consistent with 2012. This guidance is down from
previous disclosure due to lower than expected 2013 activity levels
from certain large Russian customers. Despite 2013 results that have
been below expectations, the Russian market continues to trend
towards more horizontal drilling and multi-stage fracturing, which
bodes well for growth prospects as we move into the tendering season
for 2014. 
We are currently operating two coiled tubing crews in Algeria and
have shut-down our primary cementing operations in the country. We
expect continued weakness in the Algerian market during the fourth
quarter of 2013. We will continue to focus on improving the
utilization of our coiled tubing crews in order to increase
profitability in 2014. Steady growth is expected for our Australian
cementing business in the fourth quarter of 2013 and we are
encouraged by Australia growth prospects heading into 2014. 
Customer acceptance of our completion tools is growing
internationally and we expect to see good revenue growth for our
international tools business in 2014.  
NON-IFRS DISCLOSURE 
Adjusted net income/(loss), operating income and funds provided
by/(used in) operations do not have any standardized meaning as
prescribed by IFRS and, therefore, are considered non-IFRS measures.  
Adjusted net income/(loss) and funds provided by operations have been
reconciled to profit and operating income has been reconciled to
gross profit, being the most directly comparable measures calculated
in accordance with IFRS. The reconciling items have been presented
net of tax. 


 
----------------------------------------------------------------------------
(thousands; unaudited)               Three months ended   Nine months ended 
----------------------------------------------------------------------------
                           Sept 30,  Sept 30,  June 30,  Sept 30,  Sept 30, 
                               2013      2012      2013      2013      2012 
----------------------------------------------------------------------------
Adjusted net income/(loss)   $9,693   $24,716  ($50,407) ($13,334)  $68,403 
Deduct:                                                                     
  Goodwill impairment             -         -     4,123     4,123         - 
  Non-cash share-based                                                      
   compensation expense       1,840     2,068     1,859     5,887     7,234 
  Loss on deposit with                                                      
   vendor (net of $725 in                                                   
   tax recoveries)            2,145         -         -     2,145           
----------------------------------------------------------------------------
                                                                            
Profit/(loss) for the                                                       
 period (IFRS financial                                                     
 measure)                    $5,708   $22,648  ($56,389) ($25,489)  $61,169 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
(thousands; unaudited)               Three months ended   Nine months ended 
----------------------------------------------------------------------------
                           Sept 30,  Sept 30,  June 30,  Sept 30,  Sept 30, 
                               2013      2012      2013      2013      2012 
----------------------------------------------------------------------------
Funds provided by/(used                                                     
 in) operations(i)          $71,087   $43,979  ($29,073)  $99,970  $141,887 
Charges to income not                                                       
 involving cash                                                             
  Depreciation and                                                          
   amortization             (54,646)  (37,270)  (50,613) (152,318) (111,273)
  Amortization of debt                                                      
   issuance costs              (216)     (202)     (216)     (648)     (605)
  Stock-based compensation   (1,840)   (2,068)   (1,859)   (5,887)   (7,234)
  Gain/(loss) on disposal                                                   
   of property and                                                          
   equipment                   (585)   (1,736)     (183)     (308)   (2,071)
  Net finance costs          (9,111)   (7,223)   (7,984)  (24,627)  (20,461)
  Unrealized foreign                                                        
   exchange gain / (loss)    (2,984)   (1,160)    5,282     5,594    (4,813)
  Asset impairments, net     (2,870)        -    (4,123)   (6,993)        - 
  Income tax                                                                
   recovery/(expense)         2,847    (1,284)   18,752    11,872    (7,781)
  Interest paid               6,182    13,128    12,865    21,838    15,905 
  Income tax                                                                
   paid/(recovered)          (2,156)   16,484       763    26,018    57,615 
----------------------------------------------------------------------------
                                                                            
Profit/(loss) for the                                                       
 period (IFRS financial                                                     
 measure)                    $5,708   $22,648  ($56,389) ($25,489)  $61,169 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) this reconciliation has been modified for certain prior periods to      
conform to the current year presentation                                    
                                                                            
----------------------------------------------------------------------------
(thousands; unaudited)               Three months ended   Nine months ended 
----------------------------------------------------------------------------
                           Sept 30,  Sept 30,  June 30,  Sept 30,  Sept 30, 
                               2013      2012      2013      2013      2012 
----------------------------------------------------------------------------
Operating income            $72,702   $71,355  ($14,814) $144,051  $204,945 
Add:                                                                        
  Administrative expenses    28,730    28,408    29,252    88,771    79,361 
Deduct:                                                                     
  Depreciation expense      (54,646)  (37,270)  (50,613) (152,318) (111,273)
----------------------------------------------------------------------------
                                                                            
Gross profit/(loss) (IFRS                                                   
 financial measure)         $46,786   $62,493  ($36,175)  $80,504  $173,033 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
FORWARD-LOOKING STATEMENTS 
This document contains certain forward-looking information and
financial outlook based on Trican's current expectations, estimates,
projections and assumptions that were made by the Company in light of
information available at the time the statement was made.
Forward-looking information and financial outlook that address
expectations or projections about the future, and other statements
and information about the Company's strategy for growth, expected and
future expenditures, costs, operating and financial results, future
financing and capital activities are forward-looking statements. Some
forward-looking information and financial outlook are 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 forward-looking
information and financial outlook speak only as of the date of this
document and we do not undertake to publicly update this
forward-looking information and financial outlook except in
accordance with applicable securities laws. This forward-looking
information and financial outlook include, among others: 


 
--  The anticipation that 2013 annual Russian revenue will only be 10-15%
    higher compared to 2012 with operating margins that are consistent with
    2012; 
--  The belief that Canadian operations are well positioned in the Horn
    River and will benefit when activity increases in this region; 
--  The belief that Canadian operations are well-positioned to capitalize on
    the growth of Duvernay play as it develops over the next several years; 
--  The expectation that the Canadian Completion Tools Division will have a
    more meaningful impact on Canadian financial results during 2014; 
--  The plan to continue to focus on expanding our U.S. customer base to
    increase utilization of our equipment in Bakken and Permian with the
    expectation that this will meaningfully improve our U.S. Operations'
    financial results; 
--  The expectation to begin active operations in Saudi Arabia and Colombia
    in early 2014; 
--  The expectation to continue to negotiate additional contracts in Saudi
    Arabia and Colombia; 
--  The belief that currently Trican has legal title to assets under
    construction with an insolvent vendor and is confident in its ability to
    defend this position; 
--  The expectation that capital expenditures for the remainder of 2013 will
    be approximately $25 million to $35 million and that capital
    expenditures between approximately $75 million and $85 million will be
    carried forward into 2014; 
--  The belief that Canadian demand for pressure pumping services in the
    fourth quarter will increase over 2012 levels but decrease sequentially
    due to the industry typical December slowdown; 
--  The expectation that Canadian activity levels will be supported by
    growth in the Duvernay region and by strong demand in the Monteny,
    Cardium and Deep Basin plays; 
--  The expectation that fourth quarter Canadian pricing will remain stable
    compared to the third quarter of 2013; 
--  The expectation that Canadian pricing will not increase until activity
    levels and equipment utilization remain strong over a sustained period
    of time; 
--  The expectation that we will look to increase Canadian pricing should
    the opportunity arise; 
--  The expectation that there will be a similar number of wells drilled in
    Canada in 2014 compared to 2013; 
--  The belief that there will continue to be an increase in fracturing
    stages per well and an increase in fracturing horsepower intensity per
    well; 
--  The expectation that 2014 fracturing demand will increase compared to
    2013; 
--  The belief that there will be more investment in the Duvernay play and
    that Trican is well positioned to capitalized on growth in this area; 
--  The anticipation that there will be some LNG gas related drilling in
    2014 but the majority of wells drilling for LNG export will occur past
    2014; 
--  The expectation that our U.S. operations will remain inactive in
    Haynesville until the activity levels there improve or another
    opportunity comes; 
--  The plan to keep our U.S. operations base in Haynesville open and
    continue to offer cementing services from this location as well as
    support to the fracturing operations in the Eagle Ford and East Texas; 
--  The expectation that the U.S. market will remain over-supplied in the
    fourth quarter of 2013 and in 2014; 
--  The expectation that U.S. pricing will remain stable in the fourth
    quarter of 2013 and will not improve over the next several quarters; 
--  The expectation of seasonal slow-down in the U.S. activity in the fourth
    quarter of 2013 due to holiday periods and as U.S. producers complete
    2013 capital programs; 
--  The expectation that the U.S. revenue and operating income will be lower
    on a sequential basis; 
--  The expectation that a significant amount of fracturing work in the
    Marcellus region that was secured will start as planned in the first
    quarter of 2014; 
--  The expectation that activity levels will recover in the first quarter
    of 2014 in many U.S. operating regions; 
--  The expectation to continue to focus on controlling and reducing costs
    and increasing equipment utilization in the U.S. operating regions; 
--  The belief that Trican technology will allow improving utilization of
    the fracturing crews and broaden and strengthen our customer base in the
    U.S. operating regions; 
--  The plan to continue to focus on diversifying our service offerings in
    the United States in the fourth quarter and 2014; 
--  The plan to focus on improving logistical and reducing manufacturing
    costs to increase margins in the U.S. completion tools business in 2014;
--  The expectation of lower activity levels in Russia and Kazakhstan
    sequentially due to cold weather around the end of the fourth quarter; 
--  The anticipation that 2013 Russian revenue will be 10-15% higher
    compared to 2012 and operating margins consistent with 2012; 
--  The belief that the Russian market continues to trend towards more
    horizontal drilling and multi-stage fracturing which bodes well for
    growth prospects; 
--  The expectation of continued weakness in the Algerian market during the
    fourth quarter of 2013; 
--  The plan to continue to focus on improving the utilization of coiled
    tubing crews in Algeria in order to increase profitability in 2014; 
--  The expectation of steady growth for the Australian cementing business
    in the fourth quarter of 2013; and 
--  The expectation to see good revenue growth in the international tool
    business in 2014. 

 
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. Trican's
actual results may differ materially from those expressed or implied
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: 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. The foregoing important
factors are not exhaustive. In addition, actual results could differ
materially from those anticipated in forward-looking information and
financial outlook provided herein as a result of the risk factors set
forth under the section entitled "Risks Factors" in our Annual
Information Form dated March 21, 2013. Readers are also referred to
the risk factors and assumptions described in other documents filed
by the Company from time to time with securities regulatory
authorities.  
Additional information regarding Trican including Trican's most
recent annual information form is available under Trican's profile on
SEDAR (www.sedar.com). 


 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                      
                                                                            
                                               September 30,   December 31, 
(Stated in thousands; unaudited)                        2013           2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                          $74,359       $113,506 
  Trade and other receivables                        423,560        437,038 
  Current tax assets                                  12,809            647 
  Inventory                                          232,387        211,794 
  Prepaid expenses                                    35,122         33,002 
----------------------------------------------------------------------------
                                                     778,237        795,987 
Property and equipment                             1,396,637      1,458,562 
Intangible assets                                      6,425         10,081 
Deferred tax assets                                  109,978         76,302 
Other assets                                          19,615         11,898 
Goodwill                                              77,716         43,689 
----------------------------------------------------------------------------
                                                  $2,388,608     $2,396,519 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities                                                         
  Bank loans                                              $-         $9,119 
  Trade and other payables                           270,657        228,788 
  Contingent consideration                                 -          2,860 
  Current tax liabilities                                  -          7,853 
  Current portion of loans and borrowings             77,273              - 
----------------------------------------------------------------------------
                                                     347,930        248,620 
                                                                            
Loans and borrowings                                 582,612        694,972 
Deferred tax liabilities                              81,794         77,012 
                                                                            
Shareholders' equity                                                        
  Share capital                                      559,668        527,860 
  Contributed surplus                                 60,876         55,352 
  Accumulated other comprehensive loss               (14,815)       (24,100)
  Retained earnings                                  768,344        815,700 
----------------------------------------------------------------------------
Total equity attributable to equity holders of                              
 the Company                                       1,374,073      1,374,812 
Non-controlling interest                               2,199          1,103 
----------------------------------------------------------------------------
                                                  $2,388,608     $2,396,519 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial      
statements.                                                                 
                                                                            
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                    
                                         Three Months           Nine Months 
                                  Ended September 30,   Ended September 30, 
(Stated in thousands, except per                                            
 share amounts; unaudited)             2013      2012       2013       2012 
----------------------------------------------------------------------------
                                                                            
Revenue                            $548,345  $593,204 $1,563,328 $1,727,535 
Cost of sales                       501,559   530,711  1,482,824  1,554,502 
----------------------------------------------------------------------------
Gross profit                         46,786    62,493     80,504    173,033 
Administrative expenses              28,729    28,408     88,770     79,361 
Other (expense/(income)               1,740     1,280       (764)       385 
----------------------------------------------------------------------------
Results from operating activities    16,317    32,805     (7,502)    93,287 
Finance income                         (259)     (474)    (1,278)    (1,662)
Finance costs                         9,370     7,696     25,905     22,123 
Foreign exchange loss                 4,345     1,651      1,109      3,876 
Goodwill impairment, net                  -         -      4,123          - 
----------------------------------------------------------------------------
Profit/(loss) before income tax       2,861    23,932    (37,361)    68,950 
Income tax (recovery)/expense        (2,847)    1,284    (11,872)     7,781 
----------------------------------------------------------------------------
Profit/(loss) for the period         $5,708   $22,648   ($25,489)   $61,169 
----------------------------------------------------------------------------
                                                                            
Other comprehensive income/(loss)                                           
Items which may subsequently be                                             
 recycled through profit or loss                                            
Unrealized (loss)/gain on hedging                                           
 instruments                           (144)      663       (101)     1,105 
Foreign currency translation                                                
 differences                         (5,259)  (13,908)     9,386    (12,504)
----------------------------------------------------------------------------
Total comprehensive income/(loss)                                           
 for the period                        $305    $9,403   ($16,204)   $49,770 
----------------------------------------------------------------------------
                                                                            
Profit/(loss) attributable to:                                              
  Owners of the Company               5,877    22,742    (25,024)    61,415 
  Non-controlling interest             (169)      (94)      (465)      (246)
----------------------------------------------------------------------------
Profit/(loss) for the period         $5,708   $22,648   ($25,489)   $61,169 
----------------------------------------------------------------------------
                                                                            
Total comprehensive income/(loss)                                           
 attributable to:                                                           
Owners of the Company                   305     9,497    (16,204)    50,016 
Non-controlling interest                  -       (94)         -       (246)
----------------------------------------------------------------------------
Total comprehensive income/(loss)                                           
 for the period                        $305    $9,403   ($16,204)   $49,770 
----------------------------------------------------------------------------
                                                                            
                                                                            
Earnings/(loss) per share                                                   
----------------------------------------------------------------------------
  Basic                               $0.04     $0.16     ($0.17)     $0.42 
  Diluted                             $0.04     $0.16     ($0.17)     $0.42 
----------------------------------------------------------------------------
Weighted average shares                                                     
 outstanding - basic                148,902   146,432    148,781    146,677 
Weighted average shares                                                     
 outstanding - diluted              149,086   146,446    148,781    146,773 
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial      
statements.                                                                 
 

 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS                              
                                           Three Months         Nine Months 
                                    Ended September 30, Ended September 30, 
(Stated in thousands; unaudited)         2013      2012      2013      2012 
----------------------------------------------------------------------------
Cash Provided By/(Used In):                                                 
Operations                                                                  
  Profit/(loss) for the period         $5,708    22,648  ($25,489)  $61,169 
  Charges to income not involving                                           
   cash:                                                                    
    Depreciation and amortization      54,646    37,270   152,318   111,273 
    Amortization of debt issuance                                           
     costs                                216       202       648       605 
    Stock-based compensation            1,840     2,068     5,887     7,234 
    Loss on disposal of property and                                        
     equipment                            585     1,736       308     2,071 
    Net finance costs                   9,111     7,223    24,627    20,461 
    Unrealized foreign exchange                                             
     gain/(loss)                        2,984     1,160    (5,594)    4,813 
    Asset impairments, net              2,870         -     6,993         - 
    Income tax (recovery)/expense      (2,847)    1,284   (11,872)    7,781 
    ------------------------------------------------------------------------
                                       75,113    73,591   147,826   215,407 
  Change in inventories                (4,231)      198   (20,239)  (46,175)
  Change in trade and other                                                 
   receivables                        (63,273) (107,637)   23,886    71,288 
  Change in prepayments                (3,158)   (3,761)   (1,410)  (11,907)
  Change in trade and other payables   35,750     9,856    63,913     3,013 
----------------------------------------------------------------------------
Cash generated from operating                                               
 activities                            40,201   (27,753)  213,976   231,626 
                                                                            
  Interest paid                        (6,182)  (13,128)  (21,838)  (15,905)
  Tax refund/(income taxes paid)        2,156   (16,484)  (26,018)  (57,615)
----------------------------------------------------------------------------
                                       36,175   (57,365)  166,120   158,106 
                                                                            
Investing                                                                   
  Interest received                       613       203       768       913 
  Purchase of property and equipment  (25,859)  (81,707)  (86,890) (385,862)
  Proceeds from the sale of property                                        
   and equipment                        2,040       798     4,730     1,477 
  Purchase of other assets                  -         -    (4,600)        - 
  Payments received on loan to an                                           
   unrelated third-party                    -         -         -       226 
  Business acquisitions                     -         -   (31,009)        - 
----------------------------------------------------------------------------
                                      (23,206)  (80,706) (117,001) (383,246)
                                                                            
Financing                                                                   
  Proceeds from issuance of share                                           
   capital, net                           224       181     1,130     1,289 
  Repurchase and cancellation of                                            
   shares under NCIB                        -         -         -   (10,011)
  Funds received from bank loans            -         -         -    11,310 
  Funds drawn on revolving credit                                           
   facility                            31,747   154,261         -   207,500 
  Issuance of long-term debt, net of                                        
   debt issuance costs                      -         -    26,354         - 
  Repayment of long-term debt               -         -   (71,253)  (25,425)
  Dividend paid                       (22,332)  (21,957)  (44,300)  (29,302)
----------------------------------------------------------------------------
                                        9,639   132,485   (88,069)  155,361 
                                                                            
Effect of exchange rate changes on                                          
 cash                                    (635)     (350)     (197)     (743)
----------------------------------------------------------------------------
                                                                            
Increase/(decrease) in cash and cash                                        
 equivalents                           21,973    (5,936)  (39,147)  (70,522)
Cash and cash equivalents, beginning                                        
 of period                             52,386    61,269   113,506   125,855 
----------------------------------------------------------------------------
Cash and cash equivalents, end of                                           
 period                               $74,359   $55,333   $74,359   $55,333 
----------------------------------------------------------------------------
See accompanying notes to the condensed consolidated interim financial      
statements.                                                                 

 
BUSINESS ACQUISITIONS 
Effective January 11, 2013, Trican acquired all of the issued and
outstanding shares and discharged the existing debt of Petro Tools
Holding AS, the holding company for i-TEC and its subsidiaries
(collectively "i-TEC"), for consideration of $61.3 million, which is
made up of cash of $31.0 million and 2,381,381 Trican common shares,
issued at $12.73 per share. The initial accounting for the
acquisition is incomplete, as Trican is working to quantify the
opening fair values of the assets acquired, liabilities assumed and
intangible assets arising from the acquisition. Furthermore, the
value of goodwill arising from the synergies created through the
i-TEC acquisition will be determined once the values at acquisition
have been established. In conjunction with the acquisition, Trican
has agreed to pay contingent consideration of up to U.S. $45 million
subject to agreed upon financial targets for i-TEC for the year ended
December 31, 2013. Trican has determined the acquisition date fair
value of the contingent consideration to be nil. At the end of the
third quarter Trican has determined the fair value of the contingent
consideration still to be nil. All of i-TEC's earnings have been
included in Trican's condensed consolidated statement of
comprehensive income since January 11, 2013. 
The preliminary acquisition date fair values have been determined as
follows: 


 
                                                                            
----------------------------------------------------------------------------
Fair value of acquired net assets:                                          
 Net working capital (including cash)                                 $8,809
 Property and equipment                                                4,880
 Deferred tax assets                                                   7,275
 Goodwill                                                             40,360
----------------------------------------------------------------------------
                                                                     $61,324
----------------------------------------------------------------------------
Financed as follows:                                                        
 Cash                                                                $31,009
 Shares issued out of treasury                                        30,315
----------------------------------------------------------------------------
                                                                     $61,324
----------------------------------------------------------------------------

 
Final fair value determinations will be made once the accounting for
the transaction has been completed.  
GOODWILL IMPAIRMENT 
During the nine months ended September 30, 2013, the accrual for the
performance based contingency payment of $2.3 million, payable to the
former owners of Viking Energy Pty. Limited, was reversed as the
performance criteria were not met. The Company identified this
reversal as an indicator of impairment at June 30, 2013, and as a
result completed an impairment test of the related goodwill, within
the Australia cash generating unit ("CGU"), included within the
International operations segment. Trican concluded that the
recoverable amount, determined by discounting the future cash flows
to be generated from the continuing operations of the Australian CGU,
was less than its carrying amount and a goodwill impairment charge of
$6.4 million was recorded. The Company used a discount rate of 11%
and a useful life of nine years to calculate the recoverable amount. 
LOANS AND BORROWINGS 
Long term debt 


 
                                                                            
                                               September 30,   December 31, 
                                                        2013           2012 
----------------------------------------------------------------------------
Notes payable                                       $444,233       $430,408 
Finance lease obligations                             28,543         36,324 
Revolving credit facility                            207,787        255,693 
Hedge receivable                                      (7,423)        (5,059)
----------------------------------------------------------------------------
Total                                                673,140        717,366 
Current portion of finance lease                                            
 obligations(1)                                       13,255         13,275 
Russian demand revolving credit facility                   -          9,119 
Current portion of loans and borrowings               77,273              - 
----------------------------------------------------------------------------
Non-current                                         $582,612       $694,972 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Current portion of finance lease obligations is included in trade and   
    other payables.                                                         

 
Trican has a $500.0 million four-year extendible revolving credit
facility ("Revolving Credit Facility") with a syndicate of banks. The
Revolving Credit Facility is unsecured and bears interest at the
applicable Canadian prime rate, U.S. prime rate, Banker's Acceptance
rate, or at LIBOR, plus 50 to 325 basis points, dependent on certain
financial ratios of the Company. On October 18, 2012, Trican extended
its Revolving Credit Facility by an additional year to 2016 and on
October 17, 2013 the Revolving facility was extended until 2017. The
Revolving Credit Facility requires Trican to comply with certain
financial and non-financial covenants that are typical for this type
of arrangement. Trican was in compliance with these covenants at
September 30, 2013 (2012 - in compliance). 
Notes payable 
The Notes payable require the Company to comply with certain
financial and non-financial covenants that are typical for this type
of arrangement. At September 30, 2013, the Company was in compliance
with these covenants (2012 - in compliance).  
INCOME TAXES  


 
----------------------------------------------------------------------------
(Stated in thousands)Three months ended                                     
 September 30,                                          2013           2012 
----------------------------------------------------------------------------
Current tax expense                                                         
  Current year                                        $5,942        $30,015 
  Adjustment for prior years                          (1,401)           795 
----------------------------------------------------------------------------
                                                       4,541         30,810 
----------------------------------------------------------------------------
                                                                            
Deferred income tax expense/(recovery)                                      
  Current year                                        (7,851)       (29,526)
  Adjustment for prior years                             463              - 
----------------------------------------------------------------------------
                                                      (7,388)       (29,526)
----------------------------------------------------------------------------
                                                      (2,847)        $1,284 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
(Stated in thousands)Nine months ended                                      
 September 30,                                          2013           2012 
----------------------------------------------------------------------------
Current tax expense                                                         
  Current year                                        $7,382        $83,631 
  Adjustment for prior years                          (1,401)           546 
----------------------------------------------------------------------------
                                                       5,981         84,177 
----------------------------------------------------------------------------
                                                                            
Deferred income tax expense/(recovery)                                      
  Current year                                       (18,316)       (76,220)
  Adjustment for prior years                             463           (176)
----------------------------------------------------------------------------
                                                     (17,853)       (76,396)
----------------------------------------------------------------------------
                                                     (11,872)        $7,781 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
The net income tax provision differs from that expected by applying the     
combined federal and provincial income tax rate of 25.26% (2012 - 25.17%) to
income before income taxes for the following reasons:                       
                                                                            
(Stated in thousands)                                                       
Nine months ended June 30,                              2013           2012 
----------------------------------------------------------------------------
Expected combined federal and provincial                                    
 income tax                                          ($9,411)       $17,354 
Statutory and other rate differences                  (9,608)       (15,678)
Non-deductible expenses                                5,766          4,837 
Stock based compensation                               1,487          1,821 
Translation of foreign subsidiaries                      335           (740)
Adjustments related to prior years                      (622)             - 
Changes to deferred income tax rates                     321              - 
Other                                                   (140)           187 
----------------------------------------------------------------------------
                                                    ($11,872)        $7,781 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
The change in the combined federal and provincial income tax rate is
due to an increase in the British Columbia provincial tax rate from
10% to 11% effective April 1, 2013. 
OPERATING SEGMENTS 
The Company operates in Canada and the U.S. along with a number of
international regions, which include Russia, Kazakhstan, Algeria,
Australia, Saudi Arabia, Colombia and Norway. Each geographic region
has a General Manager that is responsible for the operation and
strategy of their region's business. Personnel working within the
particular geographic region report to the General Manager; the
General Manager reports to the Corporate Executive.  
The Company provides a comprehensive array of specialized products,
equipment, services and technology to customers through three
operating divisions: 


 
--  Canadian operations provides cementing, fracturing, coiled tubing,
    nitrogen, geological, acidizing, reservoir management, industrial
    cleaning and pipeline, and completion systems and downhole tool
    services, which are performed on new and existing oil and gas wells. 
--  U.S. operations provides cementing, fracturing, coiled tubing, nitrogen,
    acidizing and completion systems and downhole tool services, which are
    performed on new and existing oil and gas wells. 
--  International operations provides cementing, fracturing, coiled tubing,
    acidizing, nitrogen, and completion systems and downhole tool services,
    which are performed on new and existing oil and gas wells. 

 
Information regarding the results of each geographic region is
included below. Performance is measured based on revenue and gross
profit as included in the internal management reports, which are
reviewed by the Company's executive management team. Each region's
gross profit is used to measure performance as management believes
that such information is most relevant in evaluating regional results
relative to other entities that operate within the industry.
Transactions between the segments are recorded at cost and have been
eliminated upon consolidation. 


 
                                     Canadian  United States  International 
                                   Operations     Operations     Operations 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended September 30, 2013                                       
----------------------------------------------------------------------------
Revenue                              $279,899       $183,080        $88,161 
Gross profit/(loss)                    60,444        (16,318)        10,875 
Finance income                              -              -              - 
Finance costs                               -              -              - 
Tax expense/(recovery)                  6,693        (11,225)         1,685 
Depreciation and amortization          18,631         28,907          6,598 
Assets                                946,227      1,056,247        332,236 
Goodwill                               63,490              -         14,226 
Property and equipment                549,901        728,413        100,691 
Capital expenditures                    6,767         13,377          5,715 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended September 30, 2012                                       
----------------------------------------------------------------------------
Revenue                              $321,948       $198,881        $72,375 
Gross profit/(loss)                    93,758        (31,946)         6,554 
Finance income                              -              -              - 
Finance costs                               -              -              - 
Tax expense/(recovery)                 17,279        (16,981)           986 
Depreciation and amortization          13,880         16,544          6,696 
Assets                                903,794      1,130,052        322,453 
Goodwill                               22,690              -         20,921 
Property and equipment                529,353        773,920        115,079 
Capital expenditures                    6,183         67,487          1,844 
----------------------------------------------------------------------------
 
                                 Intersegment                               
                                 Eliminations      Corporate          Total 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended September 30, 2013                                       
----------------------------------------------------------------------------
Revenue                               ($2,795)            $-       $548,345 
Gross profit/(loss)                    (1,871)        (6,344)        46,786 
Finance income                              -           (259)          (259)
Finance costs                               -          9,370          9,370 
Tax expense/(recovery)                      -              -         (2,847)
Depreciation and amortization               -            510         54,646 
Assets                                 (1,046)        54,944      2,388,608 
Goodwill                                    -                        77,716 
Property and equipment                      -         17,632      1,396,637 
Capital expenditures                        -              -         25,859 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended September 30, 2012                                       
----------------------------------------------------------------------------
Revenue                                    $-             $-       $593,204 
Gross profit/(loss)                         -         (5,873)        62,493 
Finance income                              -           (474)          (474)
Finance costs                               -          7,696          7,696 
Tax expense/(recovery)                      -              -          1,284 
Depreciation and amortization               -            150         37,270 
Assets                                      -         51,224      2,407,523 
Goodwill                                    -              -         43,611 
Property and equipment                      -         15,504      1,433,856 
Capital expenditures                        -          6,193         81,707 
----------------------------------------------------------------------------
                                                                            
                                     Canadian  United States  International 
                                   Operations     Operations     Operations 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Nine months ended September 30, 2013                                        
----------------------------------------------------------------------------
Revenue                              $734,673       $595,303       $237,279 
Gross profit/(loss)                   117,717        (21,643)         6,960 
Finance income                              -              -              - 
Finance costs                               -              -              - 
Tax expense/(recovery)                  9,758        (21,733)           103 
Depreciation and amortization          53,455         76,538         20,592 
Capital expenditures                   30,918         42,733         13,239 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Nine months ended September 30, 2012                                        
----------------------------------------------------------------------------
Revenue                              $895,237       $624,194       $208,104 
Gross profit/(loss)                   241,237        (59,015)         7,763 
Finance income                              -              -              - 
Finance costs                               -              -              - 
Tax expense/(recovery)                 42,334        (35,105)           552 
Depreciation and amortization          38,734         52,755         19,525 
Capital expenditures                  111,776        241,200         26,693 
----------------------------------------------------------------------------
 
                                                                            
                                 Intersegment                               
                                 Eliminations      Corporate          Total 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Nine months ended September 30, 2013                                        
----------------------------------------------------------------------------
Revenue                               ($3,927)            $-     $1,563,328 
Gross profit/(loss)                    (2,887)       (19,643)        80,504 
Finance income                              -         (1,278)        (1,278)
Finance costs                               -         25,905         25,905 
Tax expense/(recovery)                      -              -        (11,872)
Depreciation and amortization               -          1,733        152,318 
Capital expenditures                        -              -         86,890 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Nine months ended September 30, 2012                                        
----------------------------------------------------------------------------
Revenue                                    $-             $-     $1,727,535 
Gross profit/(loss)                         -        (16,952)       173,033 
Finance income                              -         (1,662)        (1,662)
Finance costs                               -         22,123         22,123 
Tax expense/(recovery)                      -              -          7,781 
Depreciation and amortization               -            259        111,273 
Capital expenditures                        -          6,193        385,862 
----------------------------------------------------------------------------

 
The Corporate division does not represent an operating segment and is
included for informational purposes only. Corporate division expenses
consist of salary expenses, stock-based compensation and office costs
related to corporate employees, as well as public company costs.
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
Sr. 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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