BANGALORE, June 8 (Reuters) - Shares of Major Drilling fell as much as 12 percent on Wednesday, a day after the company’s results missed analysts expectations hurt by harsh weather conditions.
In March, the company said it was surprised by a rapid ramp-up of demand for its mine-drilling services this year and could easily have a much larger number of rigs, but it lacked the crew to operate them.[ID:nN22148818]
TD Newcrest analyst Steven Green said Major Drilling’s fourth-quarter margins were squeezed as it ramped up its operations to meet customer demand.
Additional costs incurred for the ramp up could be pushed to the first quarter, Green said, but added that this should translate into much improved prospects beyond that.
For February-April, Major Drilling earned C$9.4 million, or 13 Canadian cents a share, below analysts expectation of 20 Canadian cents a share, according to Thomson Reuters I/B/E/S.
Shares of the company were trading down 5 percent at C$13.02 on the Toronto Stock Exchange. Earlier they touched a low of C$12.06. (Reporting by Aftab Ahmed in Bangalore; Editing by Jarshad Kakkrakandy)