* Q1 EPS C$0.29 vs C$0.69 yr ago
* Rev up 35 pct at C$131.3 mln
* Says cautious about near-term natural gas prices
* Sees FY10 production at 154 Mmcfe/d
May 10 (Reuters) - Canada's Paramount Energy Trust's PMT_u.TO quarterly profit halved, hurt by a decrease in unrealized gains on financial instruments, and it remained cautious about near-term natural gas prices.
For 2010, the trust expects oil and natural gas production at 154 millions of cubic feet equivalent per day (Mmcfe/d).
For the first quarter, the trust earned C$37.3 million or 29 Canadian cents a unit, compared with C$78.5 million, or 69 Canadian cents a unit a year ago.
Net income was hurt by a plunge in unrealized gains on financial instruments, to C$16.7 million for the current quarter, Paramount Energy said in a statement.
Net revenue rose 35 percent to C$131.3 million, while production fell to 149.2 MMcfe/d from 167.1 MMcfe/d a year ago.
"The Trust remains cautious with respect to near-term natural gas prices as impacted by strong supply from shale gas plays in the United States, increased LNG supply, weak industrial gas demand due to the economic recession and recent strength in the Canadian dollar," it said.
Distributions payable for the quarter was 15 Canadian cents per unit.
Units of the Calgary-based trust were trading down 2 Canadian cents at C$4.85 Monday afternoon on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Don Sebastian)