CORDY OILFIELD SERVICES INC. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) released today its fourth quarter and 2016 annual results.
YEAR ENDED DECEMBER 31, 2016
In 2016, Cordy's consolidated revenues decreased by $11.0 million, from the same period in 2015, despite decreased revenues Cordy saw increased operating earnings of $4.8 million compared to prior period. The steep and rapid decline in commodity prices negatively impacted industry cash flows, reducing capital investment and drilling activity in western Canada. The significant year over year decrease in revenue can be attributed to Cordy's proactive step in selling off and shutting down business units that would be hit the hardest in the economic downturn and focused on its historically higher performing businesses. In 2016 Cordy took the following steps to improve margins and focus on its core business.
CORPORATE RESTRUCTURING AND OUTLOOK
Until very recently, optimism for the oil and gas industry was decisively negative. The slow recovery of oil prices, coupled with pipeline infrastructure project approvals have allowed positivity to slowly creep back into the oil and gas sector. The partial recovery, brings with it optimism that the demand for Cordy's oilfield services will continue to increase.
2016 marked the completion of Cordy's restructuring initiatives; Cordy has positioned itself to take full advantage of an eventual recovery. Key highlights related to this include:
SOURCE: Cordy Oilfield Services Inc.
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