Date: Wed, 19 Nov 1997 22:38:30 GMT Server: Apache/1.2.1 mod_perl/1.00 Last-Modified: Wed, 02 Jul 1997 15:43:16 GMT ETag: "d996-28f5-33ba7714" Content-Length: 10485 Accept-Ranges: bytes Connection: close Content-Type: text/html
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CE Franklin Ltd. Is Canada’s leading distributor of supplies to the oil and gas drilling and production industry. Through its 37 locations across western Canada, the Company sells pipe, valves, pumps, fittings and maintenance supplies from a comprehensive stock of over 35,00 products. The Company’s head office is in Calgary and its central distribution hub is located in Edmonton.
The November 1995 merger of Continental Emsco Company Limited and Franklin Supply Company Ltd. made the resulting company, CE Franklin Ltd., the largest oilfield supply service organization in Canada. As a result, we are now able to take advantage of economies of scale in purchasing, information technologies and logistics.
CE Franklin also provides materials management support services for oil and gas producer, including managing more than 40 customer-owned warehouses and operating 29 oil pump rebuilding shops. More than a dozen oil and gas producers, both large and small, outsource their materials management to CE Franklin.
CE Franklin is a public company listed on the American Stock Exchange trading under the symbol CFK and listed on The Toronto Stock Exchange trading under the symbol CFT.
CE Franklin supplies materials and equipment for the upstream segment of the energy industry flow of activity. Oil and gas companies rely on us to source and supply the products they need because they recognize our expertise in inventory management and distribution, our rapid service response levels, our access to over 35,000 products and our constant quality control over the entire process.
Our "big/small" strategy has guided our development for more than five years. This basic principle allows us to capture the advantages of "bigness" by sharing the benefits of economies of scale and the advantages of "smallness" by serving individual customers the way they want to be served through our independent service centers.
Demand for our products is driven both by the level of new drilling and the ongoing production activities of our oil and gas customers in western Canada. We have seen high levels of activity in the oil and gas industry over the past few years and most industry analysts expect these levels will continue into 1997. The Petroleum Services Association of Canada estimates that 12,300 wells will be completed in Canada in 1997; almost 100,00 well are already in production. Considering the large remaining reserves of hydrocarbons in western Canada and the new technologies being applied to recover remaining resources form mature fields, CE Franklin con look forward to an attractive market and long-term opportunities for growth.
Continued growth in the oil and gas industry is good news for CE Franklin. However, we recognize the potential volatility of the energy industry. To supplement our revenues during periods of high industry activity and to reduce the potential impact of future slow periods, we are also involved in maintaining and refurbishing equipment at our 27 pump rebuilding shops.
Our service center concept allows us to offer small business service with large company economies of scale. All of our 36 service centers, plus our Calgary-based Tubulars Division and Edmonton-based Projects Division, are incentivized independently through our profit sharing program. In this program, each of our service centers is granted the independence and responsibility to grow profitably and hence increase employee income. In 1996, more than 90% of our people participated in the rewards of profit sharing.
Our service center employees know their individual customers’ needs and work hard to ensure they have the right products and services, when and where they need them. They are able to succeed in this because they have the entire CE Franklin inventory, distribution network and team of specialists behind them.
Every one of CE Franklin’s location is connected, live and on-line, via a computer network system. This allows customers and suppliers instant access to service centers throughout the Western Canadian Sedimentary Basin. It also gives each of our service centers direct access to our main distribution center in Edmonton and to our major suppliers.
We are striving to ensure our distribution system achieves key technological advantages. As the people who use our system have access to more sophisticated software and equipment, we are working hard to anticipate their needs. In 1997, we will be making a considerable investment to upgrade our network system to keep pace with technological change and position ourselves for future growth.
Every spring, drilling in the western Canadian oil and gas industry is interrupted when the ground thaws during "spring break-up". Spring break-up make previously frozen roads soft so heavy drilling and service rigs are prohibited from using many of the roads that connect to well sites. As a result, fewer wells are drilled and there is a reduced demand for drilling products during this period, which typically begins around mid-March and lasts from four to six weeks. To maintain revenues during spring break-up, CE Franklin focuses on refurbishing and maintaining well and facilities. For example, our paint and industrial coatings business is relatively strong during this season.
SENIOR MANAGEMENT
John E. Gilbank
Gordon R. Schnell
Russell D. Peterson
L. Jean Parker
William J. Hilton
Brent W. Greenwood
Eric E. Gould
Rick B. Strain |
DIRECTORS
David C. Baldwin (1) (2)
Samuel Belzberg
Robert S. Boswell (1)
John E. Gilbank
S. (Douglas) Martin (1) (2)
Gordon R. Schnell
Laurence E. Simmons
(1)Members of the Audit Committee |
AUDITORS
Coopers & Lybrand
Canada -
United States -
Toronto Dominion Bank |
STOCK EXCHANGE LISTING
The Toronto Stock Exchange
American Stock Exchange The Trust Company
Bank of Montreal
Harris Trust Company of New York |
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CE Franklin Ltd. 1900, 300 - 5th Avenue SW Calgary, Alberta T2P 3C4 Phone: (403) 531-5600 Fax: (403) 265-1968 Email: info@cefranklin.com |