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Slow oil market dampens Mullen Group’s Q3 report

Posted: October 20, 2016 by Today's Trucking Staff

OKOTOKS, AB – Mullen Group Ltd., one of Canada’s largest trucking companies, reports that its third quarter revenue dropped 15% to $258 million due to a $35.2 million decline in revenue from its oilfield services segment and a $9.8 million hit to its trucking and logistics segment. 

In its Q3 report, Mullen Group states that it was hurt by low demand for oil in a climate experiencing multi-year lows for drilling activity; the ongoing economic slowdown in Alberta; and slow investment in major capital projects. 

Mullen Group noted that its decreases were partially offset by $3.3 million of incremental revenue generated from acquisitions, as well as from revenue generated by Smook Contractors Ltd. and Mullen Trucking L.P. 

Over a nine-month period, revenue in the trucking and logistics segment decreased by $20.8 million, or 3.9% to $516.5 million. This decrease was due to slumping demand for most freight services in Western Canada and lower fuel surcharge revenue, the company said. 

For the complete picture of the company’s Q3 report, please click here.

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