May 18, 2009 / 1:14 PM / 9 years ago

UPDATE 1-Canada's Major Drilling Group sees loss in Q4

* Sees moderate net loss for Q4

* Expects rev to decline by 60 pct

* Sees significant slowdown in activity in 2009

May 18 (Reuters) - Major Drilling Group International Inc (MDI.TO) said it will record a moderate loss for fourth-quarter as customers continue to cut exploration and drilling budgets amid the downturn in global economic activity .

The world’s No.2 mine drilling company now expects revenue to decrease by about 60 percent. It had expected revenue to more than halve earlier in the month.

“Many of our largest senior customers cut their exploration programs significantly to conserve cash,” CEO Francis McGuire said in a statement.

The company said five of its largest customers postponed projects that had generated as much as C$40 million in revenue during the second quarter. Two analysts on average expect the company to earn 2 Canadian cents a share, before items, according to Reuters Estimates.

Shares of the company, which have plunged more than 70 percent in the past year, closed at C$15.46 Friday on the Toronto Stock Exchange. (Reporting by Chakradhar Adusumilli in Bangalore, Editing by Dinesh Nair)

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