RED DEER, Alta. - High Arctic Energy Services Inc. (TSX:HWO) saw its fourth-quarter and full-year results improve despite lower revenues, the financially struggling oilfield equipment and services company said Friday.
High Arctic lost $11.5 million or 25 cents a share in the October-December period, which narrowed a loss of $24.9 million or 59 cents a share in 2008.
Revenues from continuing operations dropped to $26.7 million from $40.8 million.
The Red Deer, Alta.,-based company lost $16.5 million or 36 cents a share in all of last year. That compared with a loss of $39.6 million or 93 cents in 2008.
The full-year loss included a $12.1-million impairment charge related to the sale of equipment, while the year-ago figures included an impairment charge of $21.7 million related to assets reclassified to assets held for sale.
High Arctic saw its consolidated revenues fall to $132.5 million from $168.5 million, a drop of 21 per cent.
The company is negotiating with its lenders to extend its credit facility, which matured June 12, 2009. Its senior consolidated debt stands at $50.7 million.
The company said it doesn't have the "capacity to repay the senior consolidated debt should the lenders demand payment."
"While the corporation is focusing its best efforts on resolving these issues and balancing the interests of all of the creditors and the shareholders, the outcome cannot be predicted at this time," it stated in a release.
The company has been selling assets in the last 22 months. Earlier this year, it sold three of its rigs for US$14 million and last September it sold its investment in Optimal Pressure Drilling Services for $23.5 million.
High Arctic is a provider of specialized oilfield equipment and services at operations throughout Western Canada and internationally, primarily in Papua New Guinea.
Shares of the company were unchanged in midday trading Friday on the Toronto Stock Exchange.