July 20, 2009 / 1:37 PM / in 9 years

UPDATE 1-Oil service company Weatherford posts lower profit

* Q2 EPS cont ops 10 cts vs. Wall St view of 16 cts

* Q2 revenue down 11 pct to $1.99 billion

* Shares drop 5 pct

NEW YORK, July 20 (Reuters) - Weatherford International Ltd (WFT.N) reported a 77 percent drop in quarterly profit, steeper than Wall Street had expected, as pricing dropped sharply in the United States and Canada, and the oilfield services company’s shares fell 5 percent.

Income from continuing operations was $69.5 million, or 10 cents per share, compared with $299.7 million, or 43 cents per share, a year earlier, the Switzerland-based company said on Monday.

Weatherford said revenue dropped 11 percent to $1.99 billion as its global rig count decreased by 35 percent.

Analysts on average were expecting earnings of 16 cents per share on revenue of $2.04 billion, according to Reuters Estimates.

The 77 percent drop in earnings from continuing operations was mainly due to a combination of record low seasonal activity in Canada and greater than anticipated pricing declines in both the United States and Canada, the company said.

North America was responsible for the decline, with revenue decreasing 44 percent against a 50 percent decline in rig count, Weatherford said. International revenues were up 17 percent against a 9 percent decrease in rig count.

Weatherford shares were down $1.00 at $18.93 in early New York Stock Exchange trading. (Reporting by Steve James; Editing by Lisa Von Ahn)

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