Poseidon Concepts to restate three quarterly results, shares dive

Thu Feb 14, 2013 11:36am EST
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Feb 14 (Reuters) - Oilfield services company Poseidon Concepts Corp said it would restate results for the first three quarters of 2012, sending its stock plunging almost 80 percent to a life-low.

Poseidon said up to C$106 million ($105.9 million) of its C$148.1 million revenue for the nine months to Sept. 30 should not have been recorded.

The company, which is also facing allegations that it overstated its income and reported inflated assets, also said its forecast for 2012 should no longer be relied on.

Canaccord Genuity analyst John Tasdemir cut his rating on the stock to "sell" from "hold," citing zero forward guidance from the management.

Shares of the Calgary-based company were down 70 percent at 26 Canadian cents in late morning trade on the Toronto Stock Exchange on Thursday.

The company's stock fell 62 percent on Nov. 16 after it cut 2012 capital expenditure by 42 percent to C$35 million. ($1 = 1.0011 Canadian dollars) (Reporting by Krithika Krishnamurthy in Bangalore; Editing by Sriraj Kalluvila)