Tervita reports steady Q1 of 2020; warns of uncertainty in Q2

Calgary, Alberta, Canada-based Tervita Corp. has announced what it calls strong first quarter 2020 results, but has warned its investors that “customer spending and drilling is expected to decline significantly in Q2 and the second half of 2020.”

The company, an industrial waste services provider that describes itself as “one of the largest waste and environmentally focused energy service providers in Canada,” says the energy market turmoil means “we cannot provide any meaningful guidance at this time” to investors.

“We started 2020 with solid performance reflecting the resiliency in our production-based business and focus on cost control,” states John Cooper, president and CEO of Tervita. “The quarter closed with the COVID-19 global pandemic and unprecedented declines in commodity prices and demand, resulting in significantly reduced energy activity levels and producer capital programs. We quickly responded to the health crisis and downturn through implementation of our business continuity plan to keep our people safe, and strategic actions to preserve liquidity and reduce fixed costs. As a result of acting quickly, Tervita has not suffered any interruptions to services or our capacity to handle our customer requirements due to the pandemic outbreak.”

Tervita Corp. has reported CA$174 million ($123.1 million) in revenue in the first quarter and CA$53 million ($37.5 million) in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Those figures were down about 5 percent compared with the first quarter of 2020.

“In the face of these challenging times, we see a unique opportunity to leverage our infrastructure and create efficiencies for customers in a time of uncertainty and tight capital discipline,” says Cooper. “Through the resilience in our business, the hard work of our people and the financial strength of the company, we believe we are well positioned to succeed when the economy recovers. In the meantime, the company is well positioned to manage through this downturn.”