CE Franklin reports high earnings in second quarter

CE Franklin reports high earnings in second quarter

CE Franklin, a Calgary, Alberta company that distributes pipe, tubular products, valves, flanges, fittings, and other general oilfield supplies to Canadian oil and gas producers, reporting its net sales rose 37 percent from second quarter 2004. This increase is largely due to strong commodity prices, improved industry economics, as well as the Company’s sales, service and marketing efforts. Total sales hit Canadian $91.9 million, a year-on-year improvement from CA$67 million. Year-to-date sales totaled CA$220.3 million compared to CA$156 million for the same period in 2004. Net income rose to CA$2.5 million, or CA$0.14 per diluted share, in the second quarter of 2005, compared to CA$518’000, or CA$.03 per diluted share, for the second quarter 2004. Year-to-date net income was reported as CA$8.3 million, compared to the year-to-date 2004 net income of CA$2.1 million. Michael West, Chairman, President, and CEO, said, "CE Franklin is pleased with the Company's results during spring breakup. A benchmark of success for oilfield service companies is to be profitable during spring breakup when activity levels drop. This is the second year in a row we have been profitable during breakup and the 11th quarter in a row with year over year improvement." Industry experts predict high levels of drilling activity during Q3 and Q4 2005, as well as 2006. CE Franklin’s management believes this will most likely result in the continuance of high demand for CE Franklin’s products and services in Canada. CE Franklin produces metal products and supplies for Canadian producers of oil and gas through its 38 branches which serve gas and oil fields in the western Canadian sedimentary basin. The Company also distributes supplies to the non-oilfield related industries such as the forestry and mining industries.