- Trican Well (TSX:TCW) has revealed its financials from a rough second quarter of 2020
- The natural gas industry services company posted a net loss of C$28.4 million, from consolidated revenues also totalling $28.4 million
- The company’s revenue fell a huge $76.9 million for the quarter, but the net loss and adjusted EBITDA were up
- Throughout the quarter the company sold $2.1 million in assets it deemed as non-core
- Trican Well (TCW) is in the grey and is trading at $0.90 per share
Trican Well (TSX:TCW) has posted its second quarter results, with the company revealing a net loss C$28.4 million for the quarter.
The company was hit hard by the coronavirus, but stated it adapted quickly to the changing market conditions and was confident its resilient culture will carry the company through these unprecedented times.
The company’s consolidated revenue for the quarter was $28.4 million, a whopping $76.9 million decrease on the second quarter of 2019.
The 73 per cent decrease in revenue was offset somewhat by production shut-ins and some government assistance.
As a result, net loss and adjusted EBITDA were actually up on the comparative 2019 quarter. Net loss was $28.4 million, up slightly from a net loss of $28.6 million last year.
Adjusted EBITDA was negative $6.8 million, which includes recognition of the $5 million the company received in payroll relief and $0.9 million in accounts receivables from previous quarters.
The company’s 2019 second quarter adjusted EBITDA was negative $15.1 million, which included $0.8 million in severance costs and $3.2 million in expenses from stainless steel fluid ends.
Trican sold a number of assets to free up liquidity, and managed to recoup some $2.1 million.
The company’s cash and cash equivalents at the end of the quarter sat at $26.4 million.
Going forward, Trican’s outlook is somewhat sunnier and is tied to commodity price projections.
The company believes natural gas prices will remained resilient in the faces of the pandemic, with the huge shut-ins in production leading to higher average prices for company’s still able to meet demand.,
Trican Well (TCW) is in the grey and is trading at $0.90 per share at 1:30 pm.