08:35 AM EDT, 05/16/2024 (MT Newswires) -- High Arctic Energy Services ( HGHAF ) earlier on Thursday announced a swing to first quarter profit after revenue rose.

The company, which provides oil and gas equipment and services, reported net income of $3.5 million, or $0.07 per diluted share compared with a net loss of $0.6 million, or $0.01 per share, last year.

Revenue of $18 million, was higher than the $8.7 million in the prior year period.

High Arctic reported cash flow from continuing operating activities of $7.435 million or $0.15 from near $310k or $0.01 a year earlier. It had funds flow from operating activities of $4.6 million, or $0.09 per share, compared with $1.3 million, or $0.03 per share, last year.

The company announced late last week that shareholders will be asked to approve the separation of the North American and Papua New Guinea businesses, as well as a distribution of surplus cash to shareholders via a return of capital of up to $0.76 per share, for a maximum $38.2 million. The meeting is to be held on June 17.

The arrangement will transfer High Arctic's PNG business to a separate, publicly traded company named High Arctic Overseas Holdings Corp., while High Arctic will continue to own and operate the existing North American Business. The two companies will have its own management and operational teams and a separate Board of Directors. .

Mike Maguire, Chief Executive Officer said: "Our businesses in both Canada and PNG have had very solid starts to 2024. Our recent acquisition and amalgamation of Delta Rental Services in Canada has delivered financial performance in line with our pre-transaction expectations and we anticipate further improvement as we move out of integration phase and optimize equipment cross-deployment. In PNG Rig 103 has delivered another high-quality quarter of drilling activity ahead of its suspension and stacking which will be completed in Q2 2024."