Propelled by a release after Friday's closing bell detailing the recently completed quarter that described it as a busy winter with near-full utilization of its equipment fleet, New West Energy Services (TSX-V:NWE) is seeing shares surge in Monday morning trading. Shares of the Calgary-based company closed Friday at $0.025 and today are up 120.0 percent at $0.055 as the noon hour approaches.
Revenue totaled $4 million in the fiscal third quarter ended January 31, 2017, with half of that generated in January alone. Overall, the revenue was up 8% from the year prior quarter. Vaccuum truck services, which make up the bulk of sales, rose 7% year-over-year to $2.8 million in Q3. Environmental services rose 12% to $1.2 million. Earnings before interest, taxes, depreciation and amortization, better known by the acronym EBITDA, was $203,000, down from $223,000 in Q3 fiscal 2016.
For the first nine months of the fiscal year, consolidated revenues were $7.5 million. That was down from $9.3 million in the year prior period. The company cited the battered energy sector at the beginning of the fiscal year as the main catalyst as drilling was greatly subdued.
New West said it had to outsource some services during the quarter due to excessive demand. Last month, New West disclosed refinancing debt obligations, securing a new loan and line of credit that it plans to use for investment to keep the extra work in house.
