Mullen Group Ltd. (TSE:MTL), a Canadian trucking and oilfield-services company, climbed to the highest in more than seven years after reporting a jump in third-quarter profit on higher sales amid increasing demand for services tied to the buildout of new pipeline capacity.
Mullen shares jumped 5 percent to C$27.05 at 3:22 p.m. in Toronto. Earlier, they reached C$27.45, the highest price since Aug. 11, 2006.
Net income for the three months ended Sept. 30 rose to C$51.2 million, or 56 cents a share, from C$42.9 million, or 52 cents a share, in the year-earlier period, the Okotoks, Alberta-based company said in a statement yesterday. Revenue grew 11.5 percent to C$374 million.
Revenue from Mullen’s trucking and logistics segment rose to C$145.6 million. Revenue from the company's oil-field services segment advanced 13 percent to C$229 million.
The company said revenue gained due to high "demand for services tied to the buildout of new pipeline capacity, other infrastructure-related projects in western Canada and the hauling of heavy crude oil.”
The shares have rallied approximately 30 percent this year.