An international drilling recovery boosted Pason Systems Corp.’s bottom line five-fold, but underinvestment in recent years could lead to supply shortages, management said.
“Our outlook remains positive for continued growth in land drilling in North America and our international markets,” said Chairman Jon Faber.
Pason operates in Canada, United States, Argentina, Australia, Bolivia, Brazil, Colombia, Dubai, Ecuador, Mexico, Peru and Saudi Arabia. The 44-year-old company serves as a Calgary-based barometer of oil and gas field activity that provides rig management systems.
Across North America, Pason calculated that field activity in the industry it serves increased 83% in the fourth quarter of 2021 compared to the same period in 2020.
“Global oil demand has remained resilient even in the face of additional Covid-19 variants and is now expected to exceed pre-pandemic levels in 2022,” Faber said. “At the same time, all signs point to a further tightening of supply.
“Underinvestment in long-term development projects over the past five years is likely to create further supply shortages in the future.”
Pason has also gained a foothold in the emerging energy transition markets for low-carbon electricity in the context of international policies on climate change and greenhouse gas reduction.
A new sideline in subscription-based Pason computer software for solar energy economic modeling and project proposals saw a 67% increase in revenue to $1.2 million in 2021. The company says in dollars Canadian dollars (C$1.00/79 US cents).
The company reported earnings of $33.8 million (41 cents/share) for the full year 2021, compared to $6.6 million (8 cents) in 2020. Fourth-quarter earnings of $11.1 million dollars (14 cents/share) reversed losses of $2.2 million (minus 3 cents). ) a year earlier.