Canadian trucking operator Mullen Group will spend $80 million on its oilfield services and freight and logistics businesses in 2013, largely to purchase tractors, trailers and specialized hauling equipment, the company said this week.
That’s about 22 percent less than Mullen’s actual capital expenditure of $103 million in 2012, though the company said it would consider additional spending throughout the year for special projects, real estate or potential corporate acquisitions.
The company will allocate about $55 million to oilfield services and $25 million to its trucking and logistics division. Mullen owns a network of independently operated small business in the oil and natural gas and trucking industries.
“This capital will ensure that our business units can remain competitive in what I can summarize as a very challenging market,” said Murray K. Mullen, chairman and CEO of the $1.4 billion company, headquartered near Calgary, Alberta.
In the 2012 third quarter, Mullen’s total revenue dropped 6.8 percent year-over-year to $335.4 million, with oilfield services revenue falling by 12.2 percent or $28.3 million and trucking and logistics revenue rose by 3.1 percent or $4 million.
Mullen said 2013 is likely to be “a challenging year” with “little opportunity to grow our business due to economic and industry conditions.” He still expects the company to generate significant cash from oilfield and trucking operations, however.