CALGARY, AB, July 22, 2025 /CNW/ – Western Energy Services Corp. (“Western” or the “Company”) (TSX:WRG) announces the release of its second quarter 2025 financial and operating results. Additional information relating to the Company, including the Company’s financial statements and management’s discussion and analysis (“MD&A”) as at June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 will be available on SEDAR+ at www.sedarplus.ca. Non-International Financial Reporting Standards (“Non-IFRS”) measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, revenue per Operating Day, and revenue per Service Hour, as well as abbreviations and definitions for standard industry terms are defined later in this press release. All amounts are denominated in Canadian dollars (CDN$) unless otherwise identified.
Operational and Financial Highlights
Three Months Ended June 30, 2025
Financial Highlights:
- Second quarter revenue of $40.0 million in 2025 was $3.0 million (or 7%) lower than the second quarter of 2024, as higher contract drilling revenue in Canada was more than offset by lower production services revenue.
- Adjusted EBITDA of $5.9 million in the second quarter of 2025 was $0.6 million (or 11%) higher compared to $5.3 million in the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 included one-time reorganization costs of $1.0 million, whereas the second quarter of 2024 included $1.8 million of one-time reorganization costs. After normalizing for these one-time reorganization costs in both periods, Adjusted EBITDA in the second quarter of 2025 would have totalled $6.9 million, compared to $7.1 million in 2024, a decrease of $0.2 million due to lower production services activity in Canada.
- The Company incurred a net loss of $4.6 million in the second quarter of 2025 ($0.14 net loss per basic common share) as compared to a net loss of $5.1 million in the second quarter of 2024 ($0.15 net loss per basic common share) as higher Adjusted EBITDA and decreases in finance costs, were offset partially by higher depreciation expense and a decrease in income tax recovery.
- Second quarter additions to property and equipment of $6.0 million in 2025 compared to $5.6 million in the second quarter of 2024, consisting of $1.2 million of expansion capital related to rig upgrades and $4.8 million of maintenance capital.
- During the second quarter of 2025, the Company made a voluntary principal repayment of $5.0 million on its Second Lien Facility (as defined within this press release).
Operational Highlights:
- In Canada, Operating Days of 764 in the second quarter of 2025 were 108 days (or 16%) higher compared to 656 days in the second quarter of 2024. Drilling rig utilization in Canada was 25% in the second quarter of 2025, compared to 21% in the same period of the prior year, mainly due to more upgraded rigs working through spring break up in 2025, as well as improved customer retention in 2025 resulting from targeted marketing efforts.
- Revenue per Operating Day in Canada averaged $32,709 in the second quarter of 2025, which was 3% higher than the same period of the prior year.
- In the United States (“US”), drilling rig utilization averaged 17% in the second quarter of 2025, which was lower than the second quarter of 2024, due to continued low industry activity in the US as well as a change in focus to North Dakota from Texas.
- Revenue per Operating Day in the US for the second quarter of 2025 averaged US$32,506, an 8% increase compared to US$30,016 in the same period of the prior year. The improvement in pricing reflects a more favorable rig mix following the Company’s strategic decision to focus its US operations more in North Dakota.
- In Canada, service rig utilization was 19% in the second quarter of 2025, compared to 33% in the same period of the prior year, as Service Hours decreased by 43% to 7,693 hours from 13,444 hours in the same period of the prior year, mainly due to changes in customer programs.
- Revenue per Service Hour averaged $1,025 in the second quarter of 2025 and was 1% higher than the second quarter of 2024.
Six Months Ended June 30, 2025
Financial Highlights:
- Revenue for the six months ended June 30, 2025 of $109.0 million was $4.0 million (or 4%) higher than the same period in 2024, as higher contract drilling revenue in Canada was offset partially by lower production services revenue.
- Adjusted EBITDA for the six months ended June 30, 2025 of $19.9 million was $0.6 million (or 3%) lower compared to $20.5 million in the same period of 2024, mainly due to one-time reorganization costs of $3.6 million. Included in Adjusted EBITDA for the six months ended June 30, 2024, was $1.8 million of one-time reorganization costs. After normalizing for one-time reorganization costs in both periods, Adjusted EBITDA in the first half of 2025 would have totalled $23.5 million, compared to $22.3 million in 2024, an increase of $1.2 million due to higher drilling revenue in Canada, which was offset partially by lower production services activity in Canada and lower drilling activity in the US.
- The Company incurred a net loss of $2.2 million in the first half of 2025 ($0.06 net loss per basic common share) as compared to a net loss of $3.7 million in the first half of 2024 ($0.11 net loss per basic common share) as decreases in depreciation expense, stock based compensation expense, and finance costs were offset by lower Adjusted EBITDA and income tax recovery.
- For the six months ended June 30, 2025, additions to property and equipment of $10.9 million compared to $7.5 million in the same period of the prior year, consisting of $1.9 million of expansion capital related to rig upgrades and $9.0 million of maintenance capital.
Operational Highlights:
- In Canada, Operating Days of 2,077 for the six months ended June 30, 2025 were 468 days (or 29%) higher compared to 1,609 days in the same period of the prior year. Drilling rig utilization in Canada was 34% in the first half of 2025, compared to 26% in the same period of the prior year, mainly due to more upgraded rigs working through spring break up in 2025 than in 2024, as well as improved customer retention year over year due to targeted marketing efforts.
- Revenue per Operating Day in Canada averaged $33,288 for the six months ended June 30, 2025, which was consistent with the same period of the prior year.
- In the US, drilling rig utilization averaged 22% for the six months ended June 30, 2025, which was lower than 25% in the same period in the prior year, due to continued low industry activity in the US and a change in focus to North Dakota from Texas.
- Revenue per Operating Day in the US for the six months ended June 30, 2025 averaged US$29,759 a 4% decrease compared to US$30,967 in the same period of the prior year, mainly due to changes in rig mix.
- In Canada, service rig utilization was 27% in the six months ended June 30, 2025, compared to 38% in the same period of the prior year, as Service Hours decreased by 31% to 22,108 hours from 31,843 hours in the same period of the prior year, mainly due to changes in customer programs.
- Revenue per Service Hour averaged $1,052 in the first half of 2025 and was 1% higher than the same period in the prior year.
- On January 27, 2025, the Company announced that it extended the maturity date of its second lien secured term loan with Alberta Investment Management Corporation (the “Second Lien Facility”) from May 18, 2026 to May 18, 2027.
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Selected Financial Information |
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(stated in thousands, except share and per share amounts) |
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Three months ended June 30 |
Six months ended June 30 |
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Financial Highlights |
2025 |
2024 |
Change |
2025 |
2024 |
Change |
|
|
Revenue |
40,005 |
43,033 |
(7 %) |
109,015 |
105,015 |
4 % |
|
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Adjusted EBITDA(1) |
5,853 |
5,259 |
11 % |
19,929 |
20,478 |
(3 %) |
|
|
Adjusted EBITDA as a percentage of revenue(1) |
15 % |
12 % |
25 % |
18 % |
20 % |
(10 %) |
|
|
Cash flow from operating activities |
19,804 |
19,260 |
3 % |
22,482 |
27,062 |
(17 %) |
|
|
Additions to property and equipment |
5,954 |
5,635 |
6 % |
10,933 |
7,537 |
45 % |
|
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Net loss |
(4,585) |
(5,136) |
11 % |
(2,199) |
(3,681) |
40 % |
|
|
– basic and diluted net loss per share |
(0.14) |
(0.15) |
7 % |
(0.06) |
(0.11) |
45 % |
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Weighted average number of shares |
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|
– basic and diluted |
33,843,022 |
33,843,015 |
– |
33,843,022 |
33,843,015 |
– |
|
|
Outstanding common shares as at period end |
33,843,022 |
33,843,015 |
– |
33,843,022 |
33,843,015 |
– |
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(1) See “Non-IFRS Measures and Ratios” included in this press release.
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Three months ended June 30 |
Six months ended June 30 |
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Operating Highlights(2) |
2025 |
2024 |
Change |
2025 |
2024 |
Change |
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Contract Drilling |
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Canadian Operations: |
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Operating Days |
764 |
656 |
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