CALGARY - Total Energy Services Inc. (TSX:TOT) is blaming a slowdown in the oilpatch for a sharp drop in fourth-quarter revenue and profit.
The Calgary-based energy services company says net income fell to $10.5 million or 34 cents per share in the three months ended Dec. 31.
That was down from 55 per cent from $23.4 million or 69 cents per share in the same 2011 period as revenue dipped 19 per cent to $78.4 million from $96.9 million.
For the full year, Total Energy reported net income of $47.7 million or $1.49 per share on revenue of $307.7 million, down 31 per cent from net income of $69.3 million or $2.08 per share on revenue of $332.1 million.
The company said results in the latest period as well as the year as a whole reflected a "more challenging industry environment that began following a record first quarter for the company."
"Continued weakness in North American natural gas prices and widening oil price differentials in Western Canada contributed to lower drilling and completion activity during the second half of 2012 compared to the second half of 2011," it said.
In it outlook for 2013, the company said Western Canadian drilling activity started out slowly in early January but has since picked up and now is generally at or above the five year average.
"In the context of continued global economic uncertainty and unique commodity price challenges facing Canadian producers, the company remains focused on the quality and efficiency of existing operations and the disciplined deployment of capital," it said.
Total Energy operates in three main industry segments, contract drilling services, rentals and transportation services, which includes the rental and transportation of equipment used in drilling, completion and production operations, and gas compression services, which includes the fabrication, sale, rental and servicing of natural gas compression and process equipment.
On the Toronto Stock Exchange, the company's shares were down a penny at $13.89 at midday Tuesday.