Flint Energy posts profit on drilling boom

Thu May 3, 2012 7:28am EDT
 
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(Reuters) - Canadian oilfield services provider Flint Energy Services FES.TO, which is being acquired by U.S. engineering company URS Corp URS.N, reported a quarterly profit on continued drilling boom in North America.

Flint Energy's first-quarter net profit was C$15.5 million ($15.7 million), or 32 Canadian cents per share, compared to a loss of C$4.5 million, or 10 Canadian cents per share, last year.

Adjusted profit was C$16.6 million, or 34 Canadian cents per share.

Revenue rose 75 percent to C$572.4 million.

Strong well drilling activity in both Canada and the United States led to higher levels of upstream and midstream work for its oilfield and production services segments, Flint said in a statement.

The company said oil sands capital spending in 2012 is expected to increase over 2011 levels with many new projects sanctioned.

URS said on February 20 it will buy Flint for C$1.25 billion in cash, to expand its presence in the oil and gas sector. ($1 = 0.9890 Canadian dollars)

(Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)