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.