SECURE reported adjusted EBITDAS of $8.5 mm, above our estimate of $6.4 mm, while margins in the PRD division far exceeded our estimate. 3Q16e activity has been impacted by wet weather across the WCSB, but the startup of the Kakwa FST in September 2016 will be additive for PRD volumes in 4Q16e. We expect gross margins in the PRD division to exceed 50% in upcoming quarters. We have reduced our 2016e EBITDAS to $91 mm from $97 mm while our 2017e EBITDAS is effectively unchanged at $171 mm
28 Jul 2016
No Change to Outlook; Attractive at Current Prices
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No Change to Outlook; Attractive at Current Prices
Secure Energy Services Inc. (SES:TSE) | 0 0 (-1.3%) | Mkt Cap: 1,294m
- Published:
28 Jul 2016 -
Author:
Ian B. Gillies -
Pages:
6
SECURE reported adjusted EBITDAS of $8.5 mm, above our estimate of $6.4 mm, while margins in the PRD division far exceeded our estimate. 3Q16e activity has been impacted by wet weather across the WCSB, but the startup of the Kakwa FST in September 2016 will be additive for PRD volumes in 4Q16e. We expect gross margins in the PRD division to exceed 50% in upcoming quarters. We have reduced our 2016e EBITDAS to $91 mm from $97 mm while our 2017e EBITDAS is effectively unchanged at $171 mm