August 10, 2009 / 10:49 AM / 9 years ago

UPDATE 1-Ensign Energy Q2 profit falls 59 pct

* Q2 shr C$0.09 vs. C$0.21 yr ago

* Adj shr C$0.15 vs. est. C$0.07

* Q2 rev down 33 pct

* Q3 activity levels remain down

Aug 10 (Reuters) - Ensign Energy Services Inc (ESI.TO) said on Monday its second-quarter profit fell about 59 percent hurt by reduced drilling activity levels and weak global economic conditions.

The company, Canada’s biggest oilfield services firm by market value, reported net income of C$13.2 million ($12.19 million), or 9 Canadian cents per share, down from C$32.3 million, or 21 Canadian cents per share, in the second-quarter of 2008.

Adjusted net income, which excludes most one-time gains and charges, fell more than 41 percent to C$23.1 million, or 15 Canadian cents, from C$39.2 million, or 26 Canadian cents per share.

The adjusted income beat the average analyst per-share profit forecast of 7 Canadian cents, according to Reuters Estimates.

The company’s quarterly revenue fell 33 percent to C$226 million.

Canada’s oilfield services sector has struggled to boost profits as their customers pare back drilling because of weak prices, particularly for natural gas, which has fallen by more than half over the past year as the recession cuts demand and inventories swell.

Ensign Energy said third quarter activity levels remain down in historical terms as operators have reduced the demand for oilfield services.

The company said it does not expect demand for oilfield services in Canada to improve, until there is a significant improvement in the commodity price for natural gas.

Shares in Ensign, one of the companies in the stable of Calgary financier Murray Edwards, closed at C$17.28 Friday on the Toronto Stock Exchange on Friday. The shares have fallen 13 percent over the past 12 months.

$1=1.083 Canadian Dollar Reporting by Chakradhar Adusumilli in Bangalore, Editing by Dinesh Nair

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