April 27, 2011 / 8:39 PM / 7 years ago

UPDATE 2-Mullen Q1 profit doubles on high oilsands activity

* Q1 EPS C$0.61 vs C$0.30 last year

* Q1 rev up 32 pct at C$342.7 mln

* Raises capex by C$25 mln to C$75 mln (Rewrites; adds details on segment revenue in paragraph 6 and conference call details in paragraph 4.)

April 27 (Reuters) - Trucking and logistics company Mullen Group , which mostly serves the Canadian oilfield sector, said its quarterly profit doubled as a rise in drilling activity in western Canada created strong demand for its services.

“Higher commodity prices, particularly for crude oil, have strengthened the demand for the majority of the services provided by Mullen Group,” the company said in a statement.

The trucker, which has added nearly 700 new employees on a year-over-year basis as compared to the first quarter of 2010, also raised its 2011 capital expenditure budget by C$25 million to C$75 million.

“Most of it is will be allocated to the production services, crude hauling businesses that we have...that’s a growth market for us,” the company said on a conference call with analysts.

Mullen, which had in January said it would double its annual dividend, earned C$48.3 million, or 61 Canadian cents a share, in the first-quarter, up from C$23.8 million, or 30 Canadian cents a share, a year ago.

Revenue rose 32 percent to C$342.7 million, from C$259.8 million. Oilfield services revenue rose 36 percent to C$240.1 million, while trucking and logistics segment revenue rose 25 percent to C$104 million.

On an adjusted basis, the trucker earned 43 Canadian cents a share.

Analysts on average had forecast earnings of 38 Canadian cents a share, on revenue of C$333.8 million, according to Thomson Reuters I/B/E/S.

Shares of the Okotoks, Alberta-based company, which have marginally risen since it posted strong results in the fourth quarter, closed at C$20.87 on Wednesday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Jarshad Kakkrakandy)

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