Newalta Corporation ("Newalta") (TSX:NAL) today reported results for the three months ended March 31, 2017.
"Our solid first quarter performance reflects both improving market conditions and our focus on operational excellence and customer driven, value-added solutions," said John Barkhouse, President and Chief Executive Officer. "Profitability continued to improve with Divisional EBITDA margins of 30%, up 11 percentage points over the prior year."
"We are seeing recovery play out in our markets as we expected, beginning with improved drilling activity driving higher utilization in our U.S. and Canadian drilling services businesses and increased drilling waste volumes to our Canadian Oilfield Facilities. We are also starting to see an increase in our project work, particularly in Heavy Oil, as the relative stability in oil prices has begun to increase customer demand. We expect these positive year-over-year recovery trends to continue in the quarters ahead.
"Our outlook for the year remains unchanged with anticipated annual Adjusted EBITDA of between $40 million and $55 million, based on a WTI forecast of $45 to $60 per barrel. We continue to work towards our target of being within a range of cash flow neutrality for the year and driving towards the positive cash flow model we envision in future years. With the actions taken to establish a lower cost structure, we remain well positioned to realize significant operating leverage and deliver strong increases in performance as our markets recover."
FIRST QUARTER RESULTS
Corporate and Other
In 2017, we expect to see a return towards normalized quarterly seasonality. Our 2017 Outlook is based on the following assumptions:
Our Q2 and full-year 2017 guidance ranges are:
Management's Discussion and Analysis and Financial Statements
The condensed consolidated financial statements and MD&A, which contain additional notes and disclosures, are available on SEDAR at www.sedar.com or our website at www.newalta.com under Investor Relations/Financial Reports.
Quarterly Conference Call
Management will hold a conference call on May 10, 2017 at 11:00 a.m. (ET) to discuss Newalta's performance for the quarter. To participate in the teleconference, please call 647-427-7450 or toll free 1-888-231-8191. To access the simultaneous webcast, please visit www.newalta.com. For those unable to listen to the live call, a taped broadcast will be available at www.newalta.com and, until midnight on Wednesday, May 17, 2017 by dialing 855-859-2056 and using the pass code 92431408.
Newalta is a leading provider of innovative engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from oil and gas exploration and production waste streams. We simplify the critical challenges of sustainable environmental practices through the use of advanced processing capabilities deployed through a differentiated business model. We serve customers onsite directly at their operations and through a network of locations throughout North America. Our proven processes and excellent record of safety make us the first-choice provider of sustainability-enhancing services for oil and gas customers. With a highly skilled team of people, a two-decade track record of innovation and a commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. We are Sustainability SimplifiedTM. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
SOURCE: Newalta Corporation
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