August 5, 2010 / 9:42 PM / 7 years ago

UPDATE 1-ShawCor Q2 profit down on weak pipeline activity

* Q2 EPS C$0.15 vs C$0.49 last yr

* Revenue down 25 pct

* Sees rev, profit strengthen in late 2010, 2011

Aug 5 (Reuters) - Canadian energy services company ShawCor Ltd SCLa.TO posted a 68 percent drop in quarterly profit, hurt by weakness in pipeline project activity in North America and Latin America.

ShawCor, however, said based on projects included in its backlog, it expects revenue and earnings to strengthen in the second half of 2010 and throughout 2011 as it begins production on previously announced projects.

For the second-quarter, the company, which provides pipe-coating services to the oil industry, earned C$10.9 million, or 15 Canadian cents a share, compared with C$34.6 million, or 49 Canadian cents a share, a year ago.

Revenue fell 25 percent to C$234.5 million.

Analysts on average had expected the company to earn 26 Canadian cents a share, on revenue of C$262.8 million, according to Thomson Reuters I/B/E/S.

Backlog at quarter-end was up C$25.7 million at C$421.8 million.

ShawCor shares, which have shed about 10 percent since the BP (BP.N) (BP.L) oil spill late April, closed at C$27.06 Thursday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Unnikrishnan Nair)

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