Calfrac Well Services reports Q4 profit due to debt settlement gain

Source: JWN Energy file photo

Calfrac Well Services Ltd. reported a fourth-quarter profit of $125.9 million, boosted by a gain on the settlement of debt.

The oilfield services company says the profit for the quarter ended Dec. 31 amounted to $2.19 per diluted share.

The result included a $226.3-million gain on the settlement of debt and a $54.2-million deferred income tax expense.

Calfrac posted a net loss of $49.4 million or $17.07 per share diluted in the fourth quarter of 2019 when it had fewer shares outstanding.

Revenue totalled $180.7 million, down from $317.1 million a year earlier.

Calfrac underwent a recapitalization plan late last year that saw holders of its senior unsecured notes swap debt for shares, leaving existing shareholders with a reduced stake in the company.

© 2021 The Canadian Press

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