April 14 - ENTREC Corporation has reduced its expectations regarding revenues for 2014, blaming lower levels of equipment utilisation, which it expects to continue into the second quarter of 2014. These reduced expectations primarily relate to the timing
Based on current expectations for future business activity, and assuming no business acquisitions are completed, ENTREC estimates revenue for the year ending December 31, 2014 could range between USD 230-250 million; a decline from ENTREC's previous revenue estimate of between USD 250 million and USD 270 million and compares to pro forma revenue of USD 237 million that ENTREC and each of its acquired businesses achieved on a combined basis in the year ended December 31, 2013.
"Our competitive position in our industry and long term outlook remains positive," said John M. Stevens, ENTREC's president and ceo. "We believe this period of lower activity will be temporary. We are now geographically positioned where we want to be, with a growing equipment fleet offering the complete range of crane and heavy haul transportation services in markets that will drive significant growth in our business over the long-term. These markets include the Alberta oil sands region, the development of LNG supply and infrastructure in northern British Columbia and north-west Alberta, and the Bakken region of North Dakota."
The Company expects revenue to trend upward in the second half of 2014 as project work begins to ramp up and utilisation levels increase. ENTREC expects higher utilisation levels in later 2014 could also continue into 2015, 2016, and 2017 due to the long-term nature of many oil sands projects.