Ceiba Energy Services Announces Fourth Quarter and Year-End 2014 Financial Results, Operational Update and New Credit Facility
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/26/15 -- Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE: CEB) is pleased to announce its year-end 2014 financial results highlighted by record processed volumes, the Company's first year of positive Adjusted EBITDA and a strong financial position at December 31, 2014. Ceiba has filed its Financial Statements, related Management's Discussion and Analysis and Annual Information Form for the year-ended December 31, 2014 on the Company's profile at .
The Company achieved many significant milestones in its corporate development and long term growth plans in 2014. The commissioning of the Chamberlain facility in November 2013 and the acquisition of Cam-Star Resources (1990) Ltd. ("Cam-Star") in February 2014 contributed to record received volumes of 420,000 m3 during 2014. Higher volumes combined with a focus on operational efficiency all contributed to Ceiba's first year of positive Adjusted EBITDA of $890 thousand.
During 2014, Ceiba issued equity twice for total gross proceeds of $25.3 million, allowing repayment of its high cost mezzanine debt and providing the Company with a strong balance sheet as it enters 2015. Ceiba is well positioned to continue its momentum into 2015, despite the energy sector challenges from recent declines in commodity prices.
In early 2015, Ceiba acquired three wellbores and surface leases in an oil producing area in Alberta from a third party for a nominal amount for the purpose of developing a future waste disposal site. The Company also received all regulatory approvals for the Athabasca facility and all regulatory approvals to commence development of the Gordondale facility.
The Company is also pleased to announce that it has signed a commitment letter ("Commitment Letter") with Alberta Treasury Branches ("ATB") for credit facilities of up to $15,000,000 subject to achieving certain EBITDA thresholds.
All tabular amounts are in CDN$ thousands except for per share amounts and where otherwise noted.
2014 Highlights
2014 Q4 Financial and Operating Results
Balance sheet highlights
FUTURE PLANS AND OUTLOOK
On January 21, 2015, Ceiba received the waste management permit from the AER for its Athabasca facility. This permit, combined with the development permit already received, allows the Company to proceed with construction of the facility within one-year of the development permit, unless extended. Ceiba received the waste disposal permit for the disposal well on February 25, 2015.
On March 18, 2015, Ceiba received the waste management permit from the AER for its Gordondale facility. This permit, combined with the development permit already received, allows the Company to proceed with construction of the facility, which is expected to occur during 2015. Ceiba expects to receive the waste disposal permit for the disposal well in due course. During 2014, Ceiba completed a workover of the Gordondale disposal well which is expected to support disposal volumes of 300 m3 to 400 m3 per day.
The Company has prudently revised its near term capital plan and growth strategy in light of the current depressed commodity price environment in western Canada and resulting 35% reduction in drilling rigs in service year-over-year. Ceiba expects to continue to grow the number of owned facilities and received volumes in 2015 compared to 2014, but has moderated its previously expected 2015 growth rates. Ceiba's revised growth strategy includes:
The Company's operating and capital activities include continued sales efforts for all its current operating facilities and the development of facilities to receive new and incremental waste streams. With the new Astra agreements, Ceiba assumes responsibility for the sales efforts for all of its facilities except for the Kinsella terminal. The Chamberlain facility received its Class 1B license in late-November 2014. The Company has acquired an additional disposal well to expand services at Silver Valley through the development of the Gordondale Class 1B satellite facility. Gordondale is currently in the regulatory approval process and the Company anticipates commissioning in early Q4 2015. Ceiba has temporarily suspended the development of its Athabasca 1B facility, which has now received all regulatory approvals and development permits. Ceiba will re-evaluate the market for waste fluids from the Athabasca oil sands region once operators have re-assessed their operations and capital programs for 2015.
Currently, the Silver Valley facility is running at approximately 90% disposal capacity and the Company believes that developing the Gordondale satellite site as a Class 1B facility will increase capacity and expand revenue streams. Ceiba is well capitalized to complete the Gordondale facility with additional working capital available to pursue its strategy of developing greenfield facilities and assess potential accretive acquisitions that are consistent with the Company's long-term strategy. The Company will actively pursue suitable locations to develop new facilities in under serviced or constrained markets and in early 2015, Ceiba acquired three wellbores and surface leases from a third party for a nominal amount for the purpose of developing a future waste disposal site.
Demand for the Company's services is dependent on oil and gas production in areas where it has facilities. Uncertainty in oil, gas and natural gas liquids pricing may influence capital spending decisions relating to production and ultimately demand for the Company's services. Demand for the Company's services is also affected by seasonal variations in the Western Canadian Sedimentary Basin. Any adverse changes in the global economy/markets may impact the oil prices and hence the oilfield industry in the region. This may impact the ability of the Company to raise capital to support its future growth plans and working capital needs.
ATB Credit Facilities
On March 26, 2015, Ceiba entered into a $15,000,000 credit facility commitment letter with ATB. A $5,000,000 revolving credit facility is immediately available. The revolving facility has an interest rate of prime plus 160 basis points per annum and a stand-by fee of 40 basis points per annum on the amount available. The revolving facility is due on demand with no set maturity date. A $10,000,000 term credit facility is available when Ceiba achieves certain income milestones. The term credit facility has an interest rate of prime plus 175 basis points per annum and a stand-by fee of 40 basis points per annum on the amount available. The term credit facility provides for monthly interest only payments. The term credit facility matures on May 31, 2016 unless extended at the option of ATB.
NON-GAAP MEASURES AND OPERATIONAL DEFINITIONS
Certain supplementary measures in this MD&A do not have any standardized meaning as prescribed under GAAP and, therefore, are considered non-GAAP measures. These measures are described and presented in order to provide information regarding the Company's financial results, liquidity and its ability to generate funds to finance its operations. These measures are identified and presented, where appropriate, together with reconciliations to the equivalent GAAP measure. However, they should not be used as an alternative to GAAP measures because they may not be consistent with calculations of other companies. These non-GAAP measures, and certain operational definitions used by the Company, are further explained below.
Gross Margin and Gross Margin %
Gross margin is calculated as revenue less operating expenses which includes direct product costs for services but excludes depreciation, depletion and amortization and general and administrative expenses. Management analyzes gross margin as a key indicator of cost control and operating efficiency. Gross margin % is calculated as gross margin as a percentage of revenue.
EBITDA and Adjusted EBITDA
EBITDA refers to net income before finance costs, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with non-recurring business acquisition costs and share based-compensation. These measures do not have standardized definition prescribed by IFRS and therefore may not be comparable to similar captioned terms presented by other users.
Management believes that EBITDA and Adjusted EBITDA are key indicators for the results generated by the Company's core business activities as they eliminate non-recurring items, certain non-cash items and the impact of finance and tax structure variables that exist between entities.
Net Working Capital
Net Working Capital is calculated as total current assets less total current liabilities. Management analyzes net working capital as a measure of our ability to settle short term liabilities with currently available assets.
About Ceiba Energy Services Inc.
Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.
Reader Advisory
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.
Forward-looking statements
Certain information regarding Ceiba in this news release, including management's assessment of its future development plans and access to various external sources of capital, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with facility construction and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Ceiba's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (). The forward-looking statements or information contained in this news release are made as of the date hereof and Ceiba does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contacts:
Ceiba Energy Services Inc.
Ian Simister
President
403-262-2783
Ceiba Energy Services Inc.
Peter Cheung
CFO and Corporate Secretary
403-262-2783
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Datum: 26.03.2015 - 23:42 Uhr
Sprache: Deutsch
News-ID 381538
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contact information:
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CALGARY, ALBERTA
Kategorie:
Oil & Gas
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