ShawCor Ltd. has announced their financial results for the fourth quarter of 2014. Mr. Steve Orr, Chief Executive Officer of ShawCor Ltd. remarked "During the fourth quarter we generated a modest improvement in operating performance with strong revenue and a 7% gain in Adjusted EBITDA. Of critical importance, we successfully integrated the Desert NDT acquisition and, in our pipe coating businesses, we accelerated the transition of activity from Asia Pacific to our EMAR region in advance of the launch of the Shah Deniz major projects in early 2015. Of equal importance, we took proactive steps to prepare the Company for the expected downturn in oilfield activity in 2015".
Mr. Orr added "There can be no doubt that the Company will be impacted in 2015 by the expected pullback in North American well completions following the sudden and steep decline in the global price of oil. However, the Company is in an excellent position to weather the downturn. We have a very strong balance sheet as a result of the recent $230 million offering of common shares.
We also expect continued solid free cash flow generation in 2015 even in the case of a reduction in North American well completions of 30% or greater. Our confidence is directly related to the Company's booked order backlog which again increased in the fourth quarter and now stands at $766 million.
During 2015, we will focus on generating cash flow from our strong order backlog, we will carefully manage the cost structures in our North American businesses that are impacted by the downturn, and we will undertake growth investments to ensure that the Company continues to execute our long term growth strategy of building an integrated global energy services company and delivering industry leading total returns to our shareholders."