August 8, 2011 / 10:38 AM / in 7 years

UPDATE 2-TransGlobe Energy Q2 profit misses Wall Street, shares fall

* Q2 avg production 11,826 bopd vs 9,206 bopd last year

* Backs FY production view of 13,000-13,500 bopd

* Shares fall 15 percent to 11-month low (Adds share movement, analysts’ estimates)

Aug 8 (Reuters) - TransGlobe Energy Corp’s second-quarter profit doubled but missed analysts’ expectations by a wide margin, as production at the Canadian oil and gas company’s assets in Yemen remained shut for the entire quarter.

Shares of the company fell 15 percent to C$7.60 — their lowest in 11 months — on Monday on the Toronto Stock Exchange.

The earnings miss was compounded by a slide in crude oil prices after Standard & Poor’s cut in the United States’ top tier credit rating on Friday added to worries about an economic slowdown.

TransGlobe’s S-1 block in Yemen was shut down in March after a pipeline was damaged, shutting-in about 2,300 bopd in production. Production resumed in July and the block is currently producing about 9,100 bopd.

Calgary, Alberta-based TransGlobe backed its full-year production view of 13,000-13,500 barrels of oil per day (bopd), up 30 percent over 2010 levels. It expects to end 2011 with production rates of about 20,000 bopd.

The company’s April-June net income was $21.9 million, or 29 cents a share, compared with $9.7 million, or 14 cents a share, a year ago. Oil revenues in the quarter rose 75 percent to $62.6 million.

Analysts on average had expected earnings of 40 cents per share on revenue of $67.1 million, according to Thomson Reuters I/B/E/S.

The quarter’s production averaged 11,826 bopd, up from 9,206 bopd from last year. The rise in production was driven mainly by higher production from the Arta/East and Hana West pools on its West Gharib property in Egypt. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Joyjeet Das, Maju Samuel)

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