* Q1 earnings C$0.46/unit vs est. C$0.29
* Q1 petroleum and natural gas sales up 74 pct
* Q1 production up 9 pct
* Raises 2010 prodn outlook to 44,000 boe/d
May 11 (Reuters) - Canadian heavy oil producer Baytex Energy Trust BTE_u.TO posted a quarterly profit that handily topped market estimates, primarily helped by higher production, and raised its 2010 production outlook.
For the first quarter, the trust reported a net income of C$52 million, or 46 Canadian cents per unit, compared with a loss of C$8.5 million, or 9 Canadian cents per unit, a year earlier.
Petroleum and natural gas sales increased 74 percent to C$261.8 million.
Analysts on average were expecting earnings of 29 Canadian cents per unit, before special items, on revenue of C$235.3 million, according to Thomson Reuters I/B/E/S.
Average production during the quarter stood at 43,425 barrels of oil equivalent (boe) per day, up from 39,762 boe per day, a year ago.
The trust raised its 2010 average production outlook to 44,000 boe per day from 43,500 boe per day and said its exploration and development capital budget for the year stands at C$235 million.
Units of the Calgary, Alberta-based trust closed at C$32.18 Monday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Unnikrishnan Nair)