Cordy Oilfield Services Inc. Reports Fourth Quarter and 2011 Annual Results

CALGARY, ALBERTA--(Marketwire - March 20, 2012) - CORDY OILFIELD SERVICES INC. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) released today its fourth quarter and 2011 annual results.

The Corporation reported earnings from continuing operations of $3.7 million or $0.04 per share for the year ended December 31 2011, representing an increase of $6.7 million compared to a loss from continuing operations of $3.0 million in 2010. Earnings before interest, taxes, depreciation, amortization and impairment and stock-based compensation ("EBITDAS") from continuing operations were $10.9 million for the year compared to $3.3 million in 2010, representing a year-over-year increase of $7.6 million. Revenue for the year increased $35.1 million to $94.2 million compared to $59.1 million in 2010.

For the fourth quarter ended December 31, 2011 Cordy reported earnings from continuing operations of $1.4 million or $0.02 per share, representing an increase of $1.9 million compared to a loss from continuing operations of $0.5 million in the fourth quarter of 2010. EBITDAS from continuing operations were $3.7 million for the quarter compared to $2.1 million in 2010, representing an increase of $1.6 million from the comparative period. Revenue for the quarter increased $11.7 million to $30.6 million compared to $18.9 million in the fourth quarter of 2010.

Cordy also announces plans to integrate its 11 business units and four business segments to achieve a unified brand for all its operations under the Cordy name. Cordy provides services to a variety of energy sectors including mining, heavy oil, conventional oil, oilsands, and liquids-rich natural gas. Each of its business units, where appropriate, will be rebranded under a single corporate brand. The organization will also integrate its operations at the segment level to achieve cost savings and allow the Corporation to market, sell and deliver its services more effectively. Beginning in the second quarter, Cordy intends to merge its Environmental Services business units to operate as Cordy Environmental. The remainder of its business segments will be integrated starting in the second half of the year.

¹ Prepared in accordance with IFRS.

² Earnings before interest, taxes, depreciation, amortization, impairment and stock-based compensation (see reader advisory).

OUTLOOK

Management is optimistic for 2012. At the start of 2011 Cordy indicated there was a renewed sense of optimism in the energy services sector that should allow for improved financial performance. Cordy's financial results from continuing operations in 2011 validated that assertion and the Corporation outperformed management's expectations for 2011, with the Corporation's financial results from continuing operations for the year nearing pre-recession levels. Cordy's willingness to discontinue a business that was no longer advancing the Corporation's strategic plan and was delivering weak performance demonstrates management's commitment to maintaining operational excellence, achieving stronger margins and creating value for shareholders.

Looking ahead to the remainder of 2012, while risks certainly remain in the global economy, the most prevalent regional risk in western Canada's energy sector is the severely depressed price of natural gas, which was below $2 per gigajoule¹ in March 2012. Management believes the steps it has taken to expand its operational focus to the mining, conventional oil, heavy oil, liquids-rich gas and oil sands regions will mitigate this risk in 2012.

The Corporation's number-one priority for 2012 is the safety of its employees. Providing a demonstrably safe work environment is a precursor to participating in many of today's energy, construction and mining projects, particularly with larger, more discerning customers, as well as to attracting and retaining employees.

Management will also focus on expanding its heavy construction operations in the mining sector in southern B.C., its heavy oil focused operation around Cold Lake, Alberta, and its oil sands related operations in the Fort McMurray region. Commencement of the transition to becoming an integrated entity in the second quarter, as discussed above, is anticipated to gradually begin realizing cost savings, by delivering Cordy's services more effectively.

With access to one of the newest fleets of heavy equipment in western Canada, Cordy will seek opportunities to exploit this advantage. The Corporation plans to replace the entire 2011 model year rental fleet with 2012 equipment, thanks to an innovative rental and exchange agreement with a major heavy equipment distributor, and also expects to increase the size of the fleet by potentially 150 pieces. Capital expenditures are budgeted at $16 million for 2012, mainly to add new heavy equipment for its mining operations as well as to expand the Environmental Services segment.

Management expects year-over-year growth in all of its business segments in 2012 and, in general, expects the organization to continue building on the performance achieved in 2011. In addition to revenue growth, management is focused on increasing earnings per share and generating sustainable earnings by growing the organization organically and through strategic acquisitions. In 2012, management believes it is now in a position to deliver the results originally envisioned for shareholders when Cordy was formed.

Complete copies of Cordy's audited consolidated financial statements for the year ended December 31, 2011 and the associated Management's Discussion and Analysis are available on our website www.cordy.ca or on SEDAR at www.sedar.com.

¹ AECO average natural gas spot price on March 19, 2012 was 1.87 $C/Mcf

READER ADVISORY

Effective January 1, 2011, Cordy began reporting its financial results in accordance with International Financial Reporting Standards (IFRS). Prior-year's comparative amounts were changed to reflect results as if Cordy had always prepared its financial results using IFRS.

This News Release contains certain statements that constitute forward-looking statements. These statements relate to future events or the Corporation's future performance. All state- ments, other than statements of historical fact, that address activities, events or developments that the Corporation or a third party expects or anticipates will or may occur in the future, are forward-looking statements. These include the Corporation's future growth, results of operations, performance and business prospects and opportunities; prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, components and parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertain- ties in weather and temperature affecting the duration of the service periods and the activities that can be completed; regional competition; and other factors, many of which are beyond the Corporation's control. These other factors include future prices of oil and natural gas and oil and natural gas industry activity, including the effect of changes in commodity prices on oil and natural gas exploration and development activity, the ability to complete strategic acquisitions and realize the anticipated benefits of any acquisitions that are completed, the Corporation's outlook regarding the competitive environment it operates in, and the assumptions underlying any of the foregoing. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Corporation's control, including those discussed under "Risks and Uncertainties" and elsewhere in this News Release, that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this News Release should not be unduly relied upon. These statements speak only as of the date of this News Release. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. The forward-looking statements contained in this News Release are expressly qualified by this cautionary statement.

Cordy uses the measures Earnings Before Interest, Taxes, Depreciation, Amortization and Impairment and Stock Based Compensation (EBITDAS) in this news release. This measure does not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS). It is, therefore, considered to be non-IFRS term and may not be comparable to similar measures presented by other entities. Management of Cordy uses these non-IFRS measures to improve its ability to compare financial results among reporting periods and to enhance its understanding of operating performance, liquidity and ability to generate funds to finance operations. This non-IFRS measure is also provided to readers as additional information on Cordy's operating performance, liquidity and ability to generate funds to finance operations. EBITDAS is an approximate measure of the Cordy's pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDAS comprises earnings before deducting interest and other financial charges, income taxes, depreciation and amortization, net income attributable to non-controlling interests and preferred share dividends.