OKOTOKS, Alta. – Mullen Group Ltd. (TSX:MTL) has reported a year-over-year decline in second quarter net income, with the oilfield services and transportation company citing a big loss in the fair value of investments, along with lower operating income and an increased loss on the sale of certain assets.
The Alberta-based company reported after markets closed that it earned $25.6 million or 28 cents per share in the three months ended June 30, down from $27.4 million or 30 cents per share in the same 2013 quarter.
The $1.8 million decrease in net income was mainly attributable to a $13.3-million “negative variance” in the fair value of investments, a $4-million decrease in operating income and a $3.8-million increase in the loss on sale of property, plant and equipment. Those factors were somewhat offset by a $17.4-million gain in unrealized foreign exchange.
Eliminating the impact of unrealized foreign exchange gains and the loss in fair value of investments, quarterly adjusted earnings were $15.1 million or 16 cents per share, down from $20.9 million or 23 cents per share in the second quarter of 2013.
Revenue totalled $313.4 million, up from $310.3 million in the year-earlier period.
The majority of the increase was directly attributable to the oilfield services segment, where revenue increased to $175.9 million from $173.6 million, primarily due to an increase in drilling activity in Western Canada.
Revenue in the trucking/logistics segment increased slightly to $137.9 million from $137.3 million, primarily due to $6.7 million of incremental revenue resulting from the acquisition of Jay’s Moving & Storage Ltd., largely offset by lower demand for heavy haul freight services in Western Canada as well as construction services in northern Manitoba.
On the Toronto Stock Exchange, shares in Mullen Group were down nine cents at $30.40 on Wednesday.