June 7, 2011 / 8:43 PM / in 7 years

UPDATE 1-Major Drilling Q4 misses on bad weather, floods

* Q4 EPS C$0.13 vs est C$0.20

* Q4 revenue C$137.3 mln vs est C$147.3 mln

* Sees 2012 capex of C$70 mln (Follows alerts)

June 7 (Reuters) - Major Drilling’s quarterly results missed market expectations as harsh winter conditions in Canada, and floods in the United States and Australia squeezed revenue at the drilling services company.

For February-April, the company earned C$9.4 million, or 13 Canadian cents a share, up from C$3.2 million, or 5 Canadian cents a share, a year ago.

Analysts on average expected earnings of 20 Canadian cents, according to Thomson Reuters I/B/E/S.

Revenue rose 41 percent to C$137.3 million, but was below analysts’ estimates of C$147.3 million.

“In addition to the weather, the strong pickup in activity in the industry has brought transitional issues, which affected our margins during the quarter,” Chief Executive Francis McGuire said in a statement.

Major Drilling, which provides contract drilling services to metals and mining companies, plans to spend about C$70 million in capital expenditure next year.

Shares of the Moncton, New Brunswick-based company closed at C$13.75 on Tuesday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Sriraj Kalluvila)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below