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Oilfield services providers are cutting rates to less than cost, renting equipment for nothing and extending credit to customers who aren’t likely to pay to maintain market share, charged the president and chief executive of Total Energy Services Ltd. on Thursday.

Dan Halyk vowed his company, which offers contract drilling, rental/transportation and compression equipment services, won’t be drawn into unprofitable activities despite pressure by rivals.

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“Price competition has been fierce, with some competitors literally offering certain of their equipment and services for free … we cannot and will not compete with free,” he said on a conference call to discuss fourth-quarter results.

“Our refusal to pursue unprofitable work and recklessly extend trade credit has undoubtedly had a negative impact on near-term equipment utilization and revenue.”

Total said its 18 rigs in Western Canada achieved only 15 per cent utilization in the last three months of 2014, down from 49 per cent in a fleet of 17 in the same period of 2014. Major equipment rentals fell to 17 per cent from 44 per cent and revenue from its compression and process services division fell 47 per cent to $36.5 million.