CALGARY — Two of Canada's biggest oil and gas well-fracking companies are posting double-digit percentage revenue declines as energy exploration spending slowed in the quarter ended June 30.
Calfrac Well Services Ltd., which has operations in Canada, the U.S., Russia and Argentina, reported revenue of $430 million, a 21 per cent fall from $545 million in the same period of 2018.
Trican Well Service Ltd., which is focused on the Canadian market, reported revenue of $110 million, a 36 per cent decline compared with $172 million in second quarter 2018.
The Calgary-based companies step in after a well is drilled to prepare it for production, performing operations including hydraulic fracturing, where liquids, sand and chemicals are injected under pressure to break up tight underground formations and free trapped oil and gas.
Calfrac reported a net loss of $42 million, up from a loss of $15 million a year earlier, as its job count and pricing levels declined in both Canada and the United States.
Trican's net loss improved to $29 million from $35 million as it continued to sell equipment and cut costs, including implementing an unspecified number of job cuts during the second quarter.
Both companies said they expect stronger business conditions in the second half of 2019.
Companies in this article: (TSX:CFW, TSX:TCW)
The Canadian Press