OKOTOKS, AB, Oct. 28 /CNW/ -- (TSX-MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") reported its financial and operating results for the period ended September 30, 2009 with comparisons to the same period last year. On May 1, 2009, the holders of trust units of Mullen Group Income Fund (the "Fund") and the holders of Class B limited partnership units of Mullen Co. Limited Partnership approved a Plan of Arrangement that resulted in the conversion of the Fund from an open-ended income trust to a corporation called Mullen Group Ltd. Mullen Group as the successor in interest to the Fund will be accounted for as a continuity of interest whereby the consolidated financial statements for the three and nine month periods ended September 30, 2009 and comparables for the three and nine month periods ended September 30, 2008 will reflect the financial position, results of operations and cash flows as if Mullen Group had always carried on the business formerly carried on by the Fund. Throughout this news release, references made to cash distributions declared and cash distributions paid reflect business of the Fund that occurred prior to conversion from an open-ended income trust to Mullen Group.

For the three month period ended September 30, 2009, Mullen Group generated consolidated revenue of $229.7 million and operating income of $45.9 million. Mullen Group generated $36.5 million of funds from operations which were mainly used to finance $3.9 million of non-cash working capital items, acquire its partners interest in Durango Oilfield Services Ltd. and certain assets and the business of Blackwater Oil & Gas Co. Ltd., repay long-term debt of $2.5 million, and fund net capital expenditures of $2.2 million.

Mullen Group's revenue of $229.7 million for the three month period ended September 30, 2009 was a decrease of $122.5 million or 34.8 percent over the $352.2 million generated for the same period last year. This decrease in consolidated revenue was attributable to lower revenues generated by both the Trucking/Logistics segment and the Oilfield Services segment. The Trucking/Logistics segment experienced lower revenues by virtue of the slowing economy and its impact on demand for freight services especially in western Canada, as well as less fuel surcharge revenue being generated due to the reduction in the average cost of diesel fuel on a year over year basis. The Oilfield Services segment experienced lower revenues by virtue of a decrease in demand for its services resulting from the significant year over year reduction in oil and natural gas drilling activity in western Canada. In addition, the business units leveraged to the transportation of fluids and the servicing of oil and natural gas wells experience a decrease in revenue by virtue of some wells being shut-in, competitive pricing and less fuel surcharge revenue.

"The operating environment in the third quarter of 2009 continued to be extremely challenging due to the combined impact of the slowing economy coupled with a significant decrease in drilling activity in western Canada. The diversity of our business model enabled us to somewhat mitigate the impact on our operating results due to the significant 63.0 percent year over year decline in oil and natural gas drilling activity in western Canada. Within such a challenging operating environment, we were able to maintain an operating margin of 20.0 percent on a year over year basis" stated Mr. Stephen Lockwood, President and Co-Chief Executive Officer.

Mullen Group generated operating income for the quarter of $45.9 million, a decrease of $28.0 million or 37.9 percent over the same period last year. The decrease in operating income was mainly attributable to the year over year decrease in consolidated revenues.