CCS Income Trust said Monday its third-quarter revenue was up by five to nine per cent over a year ago, but it expects to tally a decline in pre-tax operating profit of six to 13 per cent.
CCS, being taken private in a $3.5-billion transaction led by founder and CEO David Werklund, issued guidance saying July-September revenue was $500-million to $520-million.
The 3,000-employee oil field and environmental services trust said three-month earnings before interest, taxes, depreciation and amortization are estimated at $71-million to $77-million.
"While it was anticipated that drilling activity levels and industry conditions would improve in the second half of 2007, the amount of such improvement was dependent on producer capital spending plans and other factors outside the control of the trust," CCS observed.
"Year-over-year improvement in drilling activity did not occur, and that impacted the trust's results, particularly in the Concord Well Servicing division where operating margins are expected to be approximately 45 per cent lower than those reported in the third quarter of 2006. All other divisions are expected to report improvements in operating margins for the third quarter of 2007, in comparison to the third quarter of 2006."
The going-private transaction is expected to close Nov. 15.
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