In announcing its third quarter financial results, specialised transportation and crane services provider Entrec has outlined its strategy and outlook for 2019.
The Canadian company reported a revenue increase of 18 percent to USD43.4 million for the three months ending September 30, 2018, compared to USD36.7 million from the same period in 2017. Entrec attributed this to significant growth in its operations in the USA.
Growing demand for its services in a recovering oil and gas sector has led to both increased activity levels as well as higher customer pricing, said Entrec. “Assuming oil prices can be maintained at current levels or increase further in 2019, the company should continue to see higher industry activity levels in the USA that should result in further improvements in profitability.”
The profitability of its Texas operations, meanwhile, has been hampered in 2018 by high operating costs and labour shortages.
Due to macro-economic factors and low natural gas prices, Entrec’s outlook for the oil and natural gas industry in the west of Canada has been cautious. Pipeline constraints, according to Entrec, has forced producers in the region to increase the volume of crude in storage, putting downward pressure on prices; rising carbon taxes and increasing regulatory requirements to achieve government approvals for large industrial projects have also had a negative impact.
However, the company’s outlook for the region is improving. Revenue from maintenance, repair and operations in the Alberta oil sands region will continue to be steady throughout the remainder of 2018 and into fiscal 2019, said Entrec.
LNG Canada’s positive final investment decision on its USD40 billion liquefied natural gas (LNG) project in Kitimat is also very positive for the natural gas industry in Canada, added Entrec.
Going forward, Entrec plans to significantly expand its business in the USA and obtain additional maintenance, repair and operations contracts with existing and new clients. The company will also pursue construction project work related to LNG, pipelines, infrastructure, power generation and other industries.