Mullen Group reported its net income in the first quarter of 2013 was C$44.4 million (about US$43.5 million), down 24.5 percent from $57.6 million in the first quarter of 2012.
The drop in profit was mainly attributable to an $11.1 million decrease in operating income and a $9.4 million negative variance in unrealized foreign exchange, partially offset by a $3.4 million positive variance in the fair value of investments and a $3.0 million decrease in income tax expense, the Canadian transportation company said in a written statement.
Quarterly revenue dropped by 9.5 percent from $417.8 million in 2012 to $378.1 million in 2013. The decrease was chiefly driven by a $38.3 million decline in revenue experienced by the oilfield services segment, of which $21.4 million related to the non-recurring revenue generated by the design, build and commissioning of the Thing Fine Tailings barge system project for an oil sands operator, which was completed in the second quarter of 2012, along with a $1.5 million decline in revenue recorded by the trucking and logistics segment, Mullen Group said.
The oilfield services division contributed revenue of $252.6 million in the first quarter, falling 13.1 percent from $290.9 million in the same period in the previous year, while the trucking and logistics segment’s revenue reached $126.6 million.
“We knew coming into this quarter that it would be difficult to top the first quarter of 2012, which was a record in terms of revenue and operating income,” said Stephen H. Lockwood, president and CEO.