Corp.s profits fell sharply in the third quarter due to a
lower Canadian rig count and an uncertain economic outlook,
even as the company continued to ramp up its seamless pipe
Canadian drilling activity
slowed in the second and third quarters, hampered by wet
weather and worries about crude oil and natural gas prices, the
Edmonton, Alberta-based company said.
Those concerns will likely
affect Bri-Chems fourth-quarter results as well, it said
in earnings results released Wednesday. Other problems facing
the Canadian drilling industry include spending cutbacks, a
strong Canadian dollar and a shortage of skilled labor, the
Still, Bri-Chem said that it
planned to continue boosting production at its seamless thermal
pipe expansion facility in Edmonton to "record levels" and to
"aggressively" seek out acquisition opportunities in North
America that might give the company greater geographic
diversity and boost profits.
Bri-Chem notched net income of
Canadian $1.439 million ($1.437 million) in the third quarter,
down 63.7 percent from the year-ago quarter, on revenue that
dropped 39.6 percent to C$36.92 million ($36.88 million).
Net income for the first nine
months totaled C$3.562 million ($3.558 million), down 49.3
percent from the same period last year, on revenue that slipped
12.5 percent to C$120.41 million ($120.29 million).
One bright spot was the
companys steel pipe manufacturing division, which posted
record sales of C$4.065 million ($4.061 million) for the
quarter and C$8.682 million ($8.673 million) in the first nine
months of the year. The company added a second production shift
at its seamless pipe mill, ramping up output by 20 to 30
percent, the company said. Bri-Chems large-diameter
seamless pipe micro-mill started operating in the third quarter
of 2011 and is expected to produce up to 25,000 tons per year
amm.com, Sept. 22, 2011).
But Bri-Chem said its steel pipe
distribution segment saw sales for the quarter fall to C$4.645
million ($4.643 million) for the third quarter, off 34.7
percent from the third quarter of 2012, while nine-month sales
dipped 0.4 percent to C$21.73 million ($21.72 million).