July 22, 2009 / 11:44 AM / 8 years ago

UPDATE 1-Precision Drilling results helped by acquisition

*Q2 EPS C$0.22 vs C$0.16

*Revenue rises 51.3 pct

*Sees 2009 capex at C$210 mln

TORONTO, July 22 (Reuters) - Second-quarter profit at Precision Drilling Trust PD_u.TO, Canada’s largest oil and gas drilling contractor, jumped 164 percent helped by the late 2008 purchase of a U.S. drilling contractor.

Precision, which last year expanded in the United States with its $2 billion acquisition of Grey Wolf Inc as the credit crunch took hold, said on Wednesday it earned C$57.5 million (US$52 million), or 22 Canadian cents a unit, up from year-earlier C$21.7 million, or 16 Canadian cents a unit.

The 2009 results included a gain of C$74 million (20 Canadian cents) from foreign exchange.

Analysts, on average, expected earnings of 2 Canadian cents a unit, according to Reuters Estimates.

Revenue was C$209.6 million, up 51.3 percent from C$138.5 million.

Drilling activity in Canada has slumped as oil prices dropped 52 percent from a year ago and natural gas sank 66 percent, prompting oil companies to chop capital spending.

The company, whose finances were bolstered in April with a C$380 million investment from Alberta’s public sector pension fund manager, expects activity to remain weak into the third quarter.

Precision also said it expects to keep capital expenditures at low levels during 2009. They totaled C$165 million in the first half of 2009 and are expected at about C$210 million for the full year. ($1=$1.11 Canadian) (Reporting by Scott Anderson; editing by Jeffrey Benkoe)

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