Canadian Carrier Mullen Sees Q3 Earnings Decline as Oil Shipments Fall
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Canadian carrier Mullen Group Ltd. posted a 6.4% decline in net income in the third quarter, to C$20.5 million or 20 cents per share, according to a company news release Oct. 24. The quarter ended Sept. 30.
The Okotoks, Alberta-based operator had net income of C$21.9 million, or 21 cents, in the 2018 period.
Revenue fell C$14.4 million, or 2%, to C$325.3 million from C$339.7 million in the same period a year ago
Mullen officials said the truckload and logistics segment fell by 2%, to C$222.2 million from C$226.7 million in 2018. Revenue from the oil field services sector declined 9.3% to C$103.9 million from $114.5 million.
The company said there is demand weakness in truckload freight services, and oil fields have seen significant declines in drilling activity and mandated crude oil curtailments by the Alberta government.
“There is no denying the fact that freight demand has been softer this year than last year, especially as it relates to the movement of goods associated with capital investment within Canada, and that the oil and natural gas industry remains under duress, but consumer demand remains solid as evidenced by another strong showing from our regional LTL business units,” CEO Murray Mullen said.
“There was also a flurry of activity related to pipeline construction during the quarter, the majority related to the transportation of natural gas as companies position for the build-out of LNG projects on Canada’s west coast, the gateway to Asian markets for Canada’s landlocked natural gas,” he added. “This is extremely positive and one of the few signs that there is some hope for Canada’s energy producers.”
Mullen Group ranks No. 53 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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