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Labour shortages slowing pace of fleet activations for Calfrac Well Services


Calfrac Nicely Companies Ltd says widespread labour shortages are a problem for the sector whilst a rally in commodity costs helps drive a restoration within the oilpatch.

The Calgary-based firm — which is among the largest hydraulic fracturing firms on this planet, with operations in Western Canada, the USA, Russia, and Argentina — reported Tuesday its revenues doubled within the third quarter of 2021 in contrast with a 12 months in the past.

Calfrac president Lindsay Hyperlink stated the corporate can be anticipating a rise within the demand for its companies in 2022, which is predicted to drive enhancements in working and monetary efficiency.

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However he added, for now, Calfrac will preserve its present fleet footprint, partially resulting from widespread labour scarcity points affecting the complete oil and gasoline sector.

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“I feel the labour market continues to be persevering with to be very tight, and it’s undoubtedly an element,” Hyperlink stated.

“I feel everybody has learn in regards to the nice resignation . . . We’re not resistant to that. However we’re nonetheless an excellent business to work in. I feel we simply must get the lively recruiting machine again up and operating for that, however not at all will it ever be simple.”

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The oilfield companies firm stated it misplaced $1.5 million or 4 cents per diluted share for the quarter ended Sept. 30, in contrast with a lack of $50 million or $17.20 per diluted share in the identical quarter final 12 months.

The loss got here as income totalled $295.8 million, up from $127.8 million a 12 months in the past.

Calfrac reported greater exercise in all working divisions. The corporate’s North American lively fracturing fleet depend elevated over 60 per cent year-over-year, whereas its fracturing job depend has greater than doubled. On a companywide foundation, Calfrac’s lively fracturing fleet depend elevated by nearly 50 per cent and its fracturing job depend elevated over 130 per cent.

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Nonetheless, Hyperlink stated despite this 12 months’s dramatic enchancment in commodity costs, many oil and gasoline producers stay cautious, opting to return extra money movement to shareholders and pay down debt as a substitute of reinvesting it in manufacturing development.

“We expect that the present marketplace for our companies is robust and strengthening day by day,” Hyperlink stated on a convention name with analysts Tuesday. “Nonetheless, as evidenced by the tempered rig depend in the USA, the oilfield service restoration shall be a extra gradual journey than in previous cycles.”

Calfrac underwent a recapitalization plan late final 12 months that noticed holders of its senior unsecured notes swap debt for shares, leaving current shareholders with a diminished stake within the firm.




© 2021 The Canadian Press





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