Published on : Jul 10, 2015
Oilfield chemical manufacturer Canadian Energy Services & Technology Corp. is aiming to double its market share with the production of custom-made chemicals. With other oil and gas service companies struggling to stay afloat in the present downturn, Canadian Energy Services makes a move ahead to lead the market. The company is improving its research facilities and is looking for partnerships and acquisitions. It plans to expand its business and challenge industry leaders in North America such as Halliburton Co. and Ecolab Inc. According to Thomas Simons, the CEO of Canadian Energy Services, the company aims to grow by increasing its market share in pipeline and production chemicals sector and emerge as a major supplier to the frack industry. Presently, the company holds around 2% in the production chemicals market in North America and is targeting to increase the share to 5%.
Located in Calgary, Canadian Energy Services is the 10th best performer this year on the index released by the Standard & Poor. The company has a market valuation worth US$1.2 billion. According to the reports, Simons holds 1% stake in the company. The company had initially started with selling drilling fluids and later evolved as a manufacturer and retailer of fracking, drilling, pipelines, and production chemicals. In the first quarter of this year, Canadian Energy Services registered sales worth C$233.8 million. However, there has been a 29% dip in its profit in the first quarter.
Investors have welcomed the company’s move to foray into the production of custom-made chemicals. The company has earlier created chemicals such as Seal-Ax which prevents seepage in wells, and SuperCorr, a corrosion inhibitor. The company is presently looking at acquisition of smaller chemical firms to expand its market.