* Q1 Net Income/Unit C$0.10 vs C$0.00 Analyst View
* Monthly distribution cut to C$0.10
May 7 (Reuters) - ARC Energy Trust (ARX.TO) AET_u.TO, a Canadian conventional oil and gas royalty trust, said on Thursday its first-quarter net income fell 73 percent, hurt by weak commodity prices, but still topped analysts estimates.
ARC reported a net profit of C$22.3 million ($18.98 million) or 10 Canadian cents per unit, compared to C$81.3 million or 39 cents per unit in the same quarter last year.
Analysts on average had expected the company to break even, according to Reuters Estimates.
Cash flow from operating activities, a key indicator of the trust's ability to pay for new projects, fell 41 percent to C$124.3 million or 54 cents per unit.
ARC said its quarterly production was on budget at 64,872 barrels of oil equivalent per day (boe/d), adding that it expects full year production to average between 62,000 and 64,000 boe/d.
The trust also reduced its monthly distribution by two cents to C$0.10 per unit effective with the May distribution payable on June 15, 2009. ($1=1.175 Canadian dollars) (Reporting by Ajay Kamalakaran in Bangalore; Editing by Greg Mahlich)