Source Energy Services Ltd. reported that for the three months ended March 31, the impacts of COVID-19 on the industry lead to the company recognizing a net loss of $185.3 million or $(3.08) per share, including non-cash pre-tax charges for impairment and deferred tax asset write-down of $180.0 million.
Sand sales volumes increased by 9% for the three months ended March 31, compared to the first quarter of 2019, despite the slowdown in activity levels in the oil and gas industry with the onset of the pandemic. While Source achieved higher volumes for the quarter, sand revenue and total sales revenue were lower by 9% and 11%, respectively, compared to the three months ended March 31, 2019, due to lower realized sand prices.
Wellsite solutions revenue decreased by $3.4 million, or 22%, for the three months ended March 31, compared to the first quarter of 2019, primarily due to reduced trucking revenue as a result of varying distance to well sites, customer mix and lower trucking rates.
Sahara revenue also decreased, as the available fleet of eight units were 56% utilized for the three months ended March 31, compared to the 89% utilization rate of a seven-unit Sahara fleet for the same period last year. Utilization was impacted in March due to COVID-19 related cancellations.
• Grew market share in the Western Canadian Sedimentary Basin with a 9% growth in sand volumes.
• Distributed total volumes through Source’s WCSB terminal network of 785,574 metric tonnes.
• Executed a contract extension with a major Duvernay customer.
• Continued to diversify the business by increasing non-sand terminal revenue by $0.4 million compared to the same period last year.
• Reduced operating and general and administrative costs by 31% due to previously implemented cost reduction initiatives and other significant cost control measures taken in the quarter.