Mullen earnings, revenues hit hard in first quarter

ALDERSYDE, Alta. (May 6) — Mullen Transportation Inc., one of Canada’s largest suppliers of specialized trucking and oilfield services, said net income in the first quarter dropped 41.4% amid difficulties in Alberta’s oil and gas markets.

MTI’s consolidated revenues for the first three months of year ending March 31 were $68.2 million, a decline of 2.4% from $69.9 million during the same period a year ago. EBITDA (earnings before interest, income taxes, depreciation, and amortization) was down 19% at $11.5 million. Earnings per share tumbled 41.5% to 31 cents from 53 cents the year-previous.

MTI’s overall first-quarter performance was weighed down by its oilfield services division, which saw revenue decline 39.4% to $24.9 million. The drop is directly related to an extended period of low oil prices and reduced cash flow among MTI’s oilpatch customers, said president and CEO Murray Mullen. The drop in revenue was partially offset by a 51.1% revenue increase in MTI’s trucking division, buoyed by the acquisition of the Mill Creek group of companies.

MTI, which is celebrating a heritage of 50 years in the trucking business this year, is basing its hopes for recovery on a recent rise in the per-barrel price of crude, an upward trend in the price of material gas contracts, and generally strong economic growth in Western Canada.