Investors: 2005 Press Release Archive
HSE Announces $5 Million 2005 Capital Spending Program
NEWS RELEASE – March 3 , 2005
CALGARY, March 3 /CNW/ - HSE Integrated Ltd. ("HSE" or the "Company") is pleased to announce that the Board of Directors ("the HSE Board") has approved a $5 million capital spending program for 2005 that will significantly expand the Company in several key areas. The capital program will be funded by internally generated cashflow and unused short-term bank credit facilities.
The main objectives of HSE's 2005 internally-funded expansion are to fully exploit the existing human and equipment capital base, move personnel and equipment closer to the needs of clients, upgrade equipment to increase utilization, add selective capacity, and diversify into new markets that operate counter-cyclically to the traditional winter orientation of the upstream petroleum "wellhead" services business.
The result will be higher profit margins through increased equipment utilization, lower mobilization and demobilization expenses, and a better business balance on a seasonal basis. These initiatives will help HSE attract and retain the trained and skilled service personnel our customers demand in the important and growing Health, Safety and Environmental services business.
The funds will be invested in upgrading equipment, selective incremental capacity, and the addition of up to eight new service locations. HSE's equipment can be used in other industries without modification and its
300 plus personnel deployed without additional training. This makes HSE uniquely positioned for growth in other industries compared to traditional oilfield services that utilize highly specialized equipment suited only for the drilling, completion and servicing of oil and gas wellbores.
Assuming that commodity prices and 2005 upstream conventional oil and gas well drilling and capital spending activity remains at current levels, HSE estimates that in the fiscal year ended December 31, 2005, the Company will generate gross sales in excess of $45 million. After the $5 million capital expansion, HSE will still maintain a strong and conservative balance sheet.
David Yager, Chairman and CEO of HSE, made the following comments on the outlook for the Company in 2005 and 2006.
"Through seven focused acquisitions in 2004, HSE completely repositioned itself in the marketplace. It now has sufficient internally generated cashflow for significant organic growth, it has the equipment and personnel to expand outside of its traditional marketplace, and it has the critical mass that gives us credibility with our customers when we make commitments. By combining all of our strengths with disciplined financial management, HSE will better serve all key stakeholders - customers, employees and shareholders - in 2005 and beyond".
HSE is an integrated supplier of industrial Health, Safety and Environmental services. From its head office in Calgary, Alberta, its serves its clients from eight field service locations in Alberta and British Columbia. HSE trades on the TSX Venture Exchange under the symbol "HSL".
Forward Looking Statements
Statements in this document that may be considered forward-looking are based on management's current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information:
David Yager, Chairman & CEO
Telephone: (403) 266-1833
E-Mail:
Tony Hidalgo, Chief Financial Officer
Telephone: (403) 266-1833
E-Mail: