Canadian Rental Firm CERF Reports Third-Quarter Loss

CERF Incorporated announced its financial and operating results for the three and nine months ended September 30, 2015, showing a loss due in part to the decline in the oil and natural gas markets.

Dec 2, 2015

CERF Incorporated, a diversified equipment rentals and waste management company serving Central and Northern Alberta and British Columbia, announced its financial and operating results for the three and nine months ended September 30, 2015, showing a loss due in part to the decline in the oil and natural gas markets.

"The third quarter of 2015 was again characterized by its challenging market conditions. However, we continue to believe that our diversified businesses, cost management strategies and strong balance sheet will enable CERF to mitigate the effects of a protracted economic downturn," said Wayne Wadley, president and CEO of CERF. "Over the past nine months, we have undertaken cost reduction initiatives which included reducing personnel in our Energy Services Division by 47%. We will continue to review the cost side of our business and focus on initiatives that allow us to maintain flexibility in the current environment."

During the quarter, significant decreases in industry activity resulting from the decline in oil and natural gas prices and its impact on CERF's oilfield rentals business resulted in a one-time impairment provision of $12.5 million on goodwill and intangibles. Net loss for the quarter was $12.6 million compared to a net profit of $1.3 million for the similar quarter in 2014. Excluding the goodwill impairment charge, the net loss for the quarter was $92,000.

For more about CERF's recent financial report...