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Gibson Energy Inc. is maintaining talks about expansions and its energy transition goals as it stacks gains from the first three months of the year thanks to increased commodity prices.
The Calgary oilfield service firm’s gains were led by the oil marketing business, according to the company. Volumes grew by 20% to 58,088 b/d in 1Q2022 from 48,539 b/d in 1Q2021.
Profits, reported in Canadian dollars (C$1.00/US 80 cents), more than quadrupled in the marketing segment to $30.6 million from $4.8 million in 1Q2021. The marketing line, sold across Canada and the United States, includes crude, natural gas liquids, road asphalt, roofing material, fracturing oils, distillates and an oil-based drilling mud.
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The quarterly results marked “a strong start” to 2022 and prospects for growth emerged, said CEO Steve Spaulding. He reported the firm is considering additions to its storage tanks and capacity of its 50,000 b/d diluent recovery unit (DRU), a partnership with Houston-based US Development Group LLC.
Spaulding said “the continued advancement” of discussions around the potential sanctions for storage and “additional phases of the DRU and energy transition-aligned opportunities” were major goals for the company during the quarter.
The DRU plant at the Hardisty liquids trading hub in Central Alberta strips out gasoline-like condensate that dilutes bitumen for pipeline flows from northern production sites. The resulting concentrate, trademarked DRUbit, is transported by rail to its partner’s terminal in Port Arthur, TX, southeast of Houston.
Gibson posted 1Q2022 earnings of $51.9 million, up 59% from the $32 million reported a year ago.
Meanwhile, international oil and natural gas drilling revivals fueled a four-fold jump in earnings for Pason Systems Inc., a Calgary yardstick of industry conditions that markets rig management systems in 12 countries.
“Drilling activity improved significantly across Pason’s operating regions,” management said.. The 44-year-old firm operates around the world.
The firm expects global energy market conditions to drive continued growth. While the Ukraine war is “troubling and unpredictable.” long-range supply and demand trends add up to a strong industry driver for years ahead,management noted
“While global oil demand has largely returned to pre-pandemic levels, all significant sources of supply not only remain below pre-pandemic levels, but in some cases they are trending lower.”
The firm cited five years of depressed investment, reduced oil production in the United States, and depletion of the U.S. Strategic Petroleum Reserve to its lowest level since 1984 in response to shortage fears and price hikes.
Pason also reported success with a toehold on budding energy transition markets for low-carbon electricity that have been created by international climate change and greenhouse gas reduction policies.
A fledgling sideline in solar and energy storage, which markets Pason digital ware and equipment for power projects, scored a 95% revenue increase to $1.8 million for first quarter 2022.
Pason, which reports in Canadian dollars, posted quarterly earnings of $18.6 million (23 cents/share), compared with $4.3 million (5 cents) a year earlier. North American revenue grew by 79% to $62 million. Overseas revenue rose by 50% to $10.7 million.
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Related topics: Canada Oilfield Services Pason Systems
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