(Reuters) - Calfrac Well Services Ltd’s (CFW.TO) quarterly profit missed analysts’ expectation as an unusually warm winter in Canada slowed the movement of equipment.
The warm weather melted the hard ice surface, making it difficult for oilfield services companies such as Calfrac and Precision Drilling Corp (PD.TO) to move their heavy rigs on boggy ground.
Precision Drilling also missed analysts’ expectation due to unfavorable weather conditions in Canada.
However, an early spring break-up in Canada combined with below-average snow levels over the winter could minimize the traditional impact of road bans on activity during the remainder of the second quarter, Calfrac said in a statement.
The company’s first-quarter net income attributable to shareholders rose to C$70.8 million ($70.7 million), or C$1.59 per share, from C$49.1 million, or C$1.11 per share, a year earlier.
Adjusted profit, excluding foreign exchange gain, was C$1.33 per share.
Revenue rose 41 percent to C$474.1 million. Canada and United States account for 90 percent of the company’s revenue.
Analysts on average had expected earnings of C$1.40 per share on revenue of C$501.85 million. ($1 = 1.0012 Canadian dollars) (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)