Savanna Energy Services : Announces First Quarter 2017 Results and Temporary Waiver Amendment And Extension from Syndicated Credit Facility Lenders

First Quarter Results

Calgary, Alberta May 12, 2017 TSX - SVY Savanna generated revenue of $117.3 million, EBITDAS of $10.8 million and a net loss, attributable to shareholders of the Company, of $19.8 million or $0.17 per share in the first quarter of 2017, compared to revenue of $93.7 million, EBITDAS of $20.3 million and a net loss, attributable to shareholders of the Company, of $10.1 million or $0.11 per share in Q1 2016. Improving industry sentiment in late 2016 and into 2017, resulted in increased activity levels throughout Savanna's business lines in Canada and drilling activity in the U.S. The increased activity in Canada resulted in revenue and operating margin increases in Canadian drilling, well servicing and rentals compared to Q1 2016, despite lower year-over-year pricing.However, lower utilization and operating margins in Savanna's Australian divisions, combined with the effect of 2016 contract rollovers and negative operating margins realized in the Company's U.S. drilling division, resulted in lower overall operating margin and EBITDAS in Q1 2017 compared to Q1 2016. Savanna's negative operating margins in U.S. drilling resulted from increased operating costs associated with re-establishing a more significant operation in the Permian basin.

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