Strad Energy Services Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, revenue was CAD 9.6 million against CAD 29.9 million last year. Adjusted EBITDA was negative at CAD 2 million or CAD 0.05 per basic and diluted share against positive at CAD 3.9 million or CAD 0.10 per basic and diluted share last year. Net loss was CAD 7 million or CAD 0.19 per basic and diluted share against CAD 1.9 million or CAD 0.05 per basic and diluted share last year. Funds from operations was negative at CAD 1 million or CAD 0.03 per basic and diluted share against positive at CAD 4.0 million or CAD 0.11 per diluted share last year. Capital expenditures were CAD 0.2 million against CAD 0.5 million last year. Decreased revenue during the second quarter was a result of reduced equipment utilization and pricing in both Canada and the United States and lower Product Sales due to a significant decline in rig activity levels year-over-year.

For the six months, revenue was CAD 24.8 million against CAD 64.3 million last year. Adjusted EBITDA was negative at CAD 1.6 million or CAD 0.04 per basic and diluted share against positive at CAD 10.9 million or CAD 0.29 per diluted share last year. Net loss was CAD 10 million or CAD 0.27 per basic and diluted share against CAD 1.7 million or CAD 0.05 per basic and diluted share last year. Funds from operations was CAD 0.1 million against CAD 11.4 million or CAD 0.31 per basic and diluted share last year. Capital expenditures were CAD 0.7 million against CAD 7.5 million last year. Net cash generated from operating activities was CAD 8.4 million against CAD 23.2 million last year.

Strad's 2016 capital budget of CAD 7.3 million includes CAD 4.5 million of maintenance capital expenditures and will be evaluated during the year based on affordability and activity levels.