August 11, 2008 / 12:25 PM / 10 years ago

Ensign Energy quarterly profit jumps 29 percent

TORONTO (Reuters) - Ensign Energy Services Inc (ESI.TO) reported a higher second-quarter profit, buoyed by better-than-expected results from its Canadian oilfield services division, the company said on Monday.

Canada’s No. 2 oilfield-services firm said net income in the quarter through June 30 grew 29 percent to C$32.3 million, or 21 Canadian cents a share, from C$25.1 million, or 16 Canadian cents a share, a year earlier.

Ensign Energy said profits were bolstered by its Canadian oilfield services division and record contributions from its United States operations. In the U.S., results reflected the addition of 13 rigs, Ensign said.

The company also said its profit was impacted by stock-based compensation expenses, which increased significantly in 2008 compared with 2007.

Adjusted net income, which eliminates the tax-affected impact of stock-based compensation expense, grew to C$39.2 million, or 25 Canadian cents a share, from C$26 million, or 17 Canadian cents a share.

Revenue swelled nearly 14 percent to C$337.8 million from C$296.5 million.

Calgary-based Ensign said it had begun the first phase of a worldwide drilling rig construction program that will expand its global rig fleet over the next 18 months.

The company said its outlook had turned more rosy in recent months due to record crude oil prices and favorable natural gas prices, though concerns about a global economic slowdown remained.

($1=$1.07 Canadian)

Reporting by Jennifer Kwan; Editing by Bernadette Baum

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