August 9, 2010 / 10:54 AM / in 8 years

UPDATE 1-Ensign Energy Q2 below market estimates

* Q2 EPS C$0.06 vs est C$0.13

* Q2 FFO C$0.28/shr vs C$0.40/shr year ago

* Revenue rises 14 pct

Aug 9 (Reuters) - Canadian oilfield services provider Ensign Energy Services Inc (ESI.TO) posted quarterly results below market estimates, hurt in part by higher operating costs.

For the second quarter ended June 30, the company’s net income fell to C$9.3 million, or 6 Canadian cents a share, from C$13.2 million, or 9 Canadian cents a share, a year ago.

Revenue, however, rose 14 percent to C$257.6 million. Ensign said revenue from its U.S. operations increased 22 percent reflecting stronger demand for oilfield services equipment.

Analysts on average were expecting earnings of 13 Canadian cents a share on revenue of C$268.7 million, according to Thomson Reuters I/B/E/S.

Ensign said higher operating costs associated with the deployment of additional equipment hurt its results.

Funds from operations fell 30 percent to C$43.6 million, or 28 Canadian cents a share, in the quarter.

Spring conditions in Canada that limit or prevent the movement of oilfield services equipment also impacted the company’s second quarter.

Shares of the company closed at C$12.70 Friday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian)

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