12°c Overcast
18°c Cloudy with sunny breaks
The Canadian Press - ONLINE EDITION
Wenzel Downhole reports big Q4 loss; cites $18.5M litigation settlement
CALGARY - Wenzel Downhole Tools Ltd.'s (TSX:WZL) says an $18.5-million litigation settlement is behind its big loss in the fourth quarter.
The oilfield drilling equipment maker said Wednesday its net loss for the three months ended Dec. 31 was more than $11.9 million or 39 cents per diluted share compared with a profit of $2.2 million or six cents in the same 2011 period.
Without this settlement, the company would have recorded earnings before income tax of $1.9 million compared with earnings before income tax of $2.5 million in the fourth quarter of 2011.
Meanwhile, revenues in the quarter shrank to $19 million from $26.5 million as customers cut spending amid a general slowdown in the oilpatch.
The legal charge arose out of an arbitration award announced in January in favour of Dreco Energy Services ULC and Vector Oil Tools ULC, ending a 10-year dispute.
Dreco Energy Services ULC and Vector Oil Tools ULC had accused Wenzel of inducing the former owner of Vector to violate a non-competition agreement he had with that company. In January an arbitrator ordered Wenzel to pay $14.7 million in damages plus interest to the two companies.
The fourth-quarter loss also impacted full-year results, with Wenzel reporting a net loss of $5.5 million or 18 cents per diluted share on revenue of $87.3 million. That compared with a net profit of $10.3 million or 29 cents on revenue of $90.7 million.
Annual revenues in Canada were up six per cent at $30.2 million, while U.S. rentals were up seven per cent at $45.9 million. However, international sales fell to $11.2 million from $19.2 million in 2011.
"2012 was an important year of transition for Wenzel Downhole Tools," president and CEO Ron Patterson said in the company's earnings release.
"I am pleased that the great uncertainty related to the legal action the company has faced over the last decade is now behind us. While 2013 may present us with new challenges, it will certainly also present us with opportunities."
More Business
- Back to Top
- Return to Business
More Business
(1 of 19 articles for today)
Bernanke says computer revolution likely to provide various future gains to economic growth
2:56 PM 0
Poll
Most Popular Business
- Ex-'Pegger seeks to grow local businesses
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Gen X, young boomers up against retirement wall
- Bridging the gap
- Buyer beware in online auto sales: experts
- Weekend of spending expected
- The ready-made solution evolution
- Toronto, Wall Street surge higher amid positive U.S. data, consumer sentiment
- In blurring of online courses, traditional, Georgia Tech to offer full open online master's
- Feds trim the beef from research
- Transcona transformation
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Holiday pump jump debated
- Driving downtown development
- Winnipeg's got the REIT stuff
- McDonald's adding 3 new Quarter Pounders as it phases out third-pound Angus burgers
- Flight attendants union calls $50 million Air Canada cuts premature
- 3 Ford owners sue in federal court, saying EcoBoost engine is defective
- CEO, execs terminated at TCIG
- Emergency manager reveals Detroit is nearly broke; city may have no choice except bankruptcy
- Target opens its first Manitoba stores Tuesday
- New structure to be king of downtown?
- Transcona transformation
- Target opens Manitoba stores
- Mounties say crooks passing fake polymer bank notes in British Columbia
- Raising the rent is a good sign
- City to get a touch of glass
- Canad Inns property has personal meaning for owner
- Holiday pump jump debated
- Border-fee idea doesn't fly
- Bridging the gap
- Ex-'Pegger seeks to grow local businesses
- Late deal in workplace sex-harassment case
- Few crossovers score well in front crashes: report
- Tougher food-safety rules in the works: Agriculture Minister Gerry Ritz
- Give yourself permission to relax
- Buyer beware in online auto sales: experts
- Transcona transformation
- Winnipeg's got the REIT stuff
- CEO, execs terminated at TCIG
- Diversification spurs Exchange Income's growth
- Driving downtown development
- Late deal in workplace sex-harassment case
- There are lots of I's in 'team'
- City to get a touch of glass
- Bridging the gap
- Flight attendants union calls $50 million Air Canada cuts premature
- Transcona transformation
- MacDon on the block?
- New structure to be king of downtown?
- CEO, execs terminated at TCIG
- Target opens its first Manitoba stores Tuesday
- Canad Inns property has personal meaning for owner
- Winnipeg's got the REIT stuff
- Older and jobless? Resource on hand
- Carney says touching Canadian deposits "hard to fathom" in a new bail-in scheme
- Winnipeg Boeing plant set to expand
Ads by Google
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.