August 13, 2012 / 11:48 AM / in 6 years

Ensign Energy net profit up, sees lower North America activity

Aug 13 (Reuters) - Oilfield services provider Ensign Energy Services Inc reported a 16 percent rise in quarterly net profit on increased drilling in its international and U.S. markets but said it expects activity levels in North America to fall through the rest of the year.

The company, whose North American peers include Halliburton Co, Schlumberger Ltd, Baker Hughes Inc and Calfrac Well Services Ltd, said the recent drop in oil prices and the resultant impact on customer cash flows could hit activity levels in North America.

Ensign, a land-based driller and a well servicing provider for crude oil, natural gas and geothermal wells, has operations in North and South America, Europe, the Middle East, Africa and the Asia-Pacific region.

Ensign’s net income rose to C$18.7 million ($18.9 million), or 12 Canadian cents per share, in the second quarter, from C$16.1 million, or 11 Canadian cents per share, a year earlier.

On an adjusted basis, it earned 11 Canadian cents per share.

Funds from operations increased 24 percent to C$82.5 million, or 54 Canadian cents per share, due mainly to expansion in the United States.

Revenue jumped 39 percent to C$463.9 million.

The company said its Canadian operations were hit in the quarter by the longer spring break-up period, which hampered movement of equipment.

Shares of the Calgary, Alberta-based company, which has a market value of C$2.40 billion, closed at C$15.69 on Friday on the Toronto Stock Exchange.

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