CALGARY, Alberta, March 26, 2018 (GLOBE NEWSWIRE) -- Critical Control Energy Services Corp. (TSX:CCZ) today reported its financial results for the year ended December 31, 2017.
“Our 2017 results delivered strategic growth of our cloud based software as we penetrated the US market,” said Alykhan Mamdani, CEO of Critical Control. “This growth, combined with the focus on our software, improvement of our margins and reduction of our operating costs resulted in strong growth to our EBITDA.”
Revenue
Gross margin
Earnings and net earnings
Outlook and Guidance
The volatility in the price of oil and gas through 2017 has continued to impede investment in the industry. While the strengthening price of oil in early 2018 has created cautious optimism in the Corporation’s US client base, the lack of access to export markets in Canada continues to negatively impact investment in the Corporation’s largest revenue base.
As the industry struggled over the past three years, oil and gas service providers have become increasingly competitive materially driving down costs to the producer, which have materially impacted the Corporation’s revenue base. While the impact to the Corporation’s measurement services and software based services was felt the most, the value provided by the Corporation’s cloud based software generated modest growth, driven primarily through penetration of the Corporation’s software into the US market.
The Corporation’s strategy for 2018 and onwards is to leverage its Field Services customers in the US to adopt the Corporation’s software. The Corporation is rebuilding its Field Services business to differentiate an increasingly commoditized offering with cost savings based on adoption of software. Management is confident that this endeavour will yield growth in the Corporation’s strategic cloud based software revenue, but the effort is expected to materially impact the Corporation’s measurement services revenue in early 2018 as the Corporation implements customers onto its cloud based software. Management’s expectation of growth is based upon continued penetration of the Corporation’s software by its US customers and may be impacted as the industry continues investment in automation attracting the entry of new competitive products to the Corporation’s software.
The Corporation has continued its investment in enhancing its existing software portfolio and adding new software products to reduce energy producer’s cost and risk. Management intends on continuing this investment through 2018.
About Critical Control
Critical Control provides solutions for the collection, control and analysis of measurement and operational data related to oil and gas wells across North America. We provide services to capture the data, cloud based software to visualize and manage it and the business intelligence to make quicker and more informed operational decisions.
For further information
Alykhan Mamdani
President & CEO
Tel (403) 705-7500
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