Services industry trust thrives in stormy times

Operating outside the spotlight, Eveready Income Fund is reveling in the oil sands, raking in C$87.7 million last year from its services business, up C$24.5 million from 2005.

Overall, Eveready’s revenue for the year was C$380 million, a gain of 72 percent, with net earnings generating C$29.9 million or 48 cents per unit for its investors compared with C$14.3 million or 38 cents per unit the previous year.

Monthly cash payouts were raised twice in April, then again in October, putting to rest the view that the entire trust sector is reeling from the Canadian government’s plans to put trusts on the same tax footing as corporations.

Eveready made 18 acquisitions in 2006 and is counting on revenues this year in excess of C$500 million.

To finance growth last year, the fund raised C$56 million in equity capital through a bought-deal financing in February, raised C$50 million through a convertible debenture bought-deal financing in June and raised its interest-only long-term debt credit facility to C$80 million from C$60 million.

Eveready said demand for its services remains strong despite recent cutbacks on drilling activity and shallow gas exploration.

—Gary Park