August 8, 2011 / 10:29 PM / 7 years ago

UPDATE 1-Flint Energy posts surprise Q2 profit

Aug 8 (Reuters) - Canada’s Flint Energy Services Ltd posted a surprise adjusted profit as its oilfield services segment gained momentum on increased drilling activity in North America, and forecast a stronger second half.

U.S. crude oil prices CLc1, averaged $103.49 a barrel during the quarter, up more than third from last year, pushing oil and gas companies to expand their exploration budget.

The oilfield service firm’s April-June loss per share narrowed to 2 Canadian cents from 19 Canadian cents a share a year ago.

Flint’s adjusted profit was 9 Canadian cents a share, while analysts estimated a loss of 1 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue was flat at C$339.1 million, as weakness in its facilities infrastructure segment was offset by revenue in the oilfield services segment, which doubled.

The company’s second-quarter was hit by seasonal slowdown in Canada — where melting snow in spring hampered activity, and expects to clear the backlog in the second half of 2011.

The company expects production services revenue, which was flat in the second quarter, to gain strength in the second half of the year.

Flint expects second-half drilling to increase 17 percent to 8,800 wells, while it sees drilling activity in the U.S. to rise 18 percent to 33,888 wells.

Shares of the company closed at C$11.15 on Monday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore)

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