November 2, 2010 / 9:25 PM / in 7 years

UPDATE 1-North American Energy Q2 profit nearly halves

* Q2 EPS C$0.06 vs est C$0.12

* Rev up 38 percent

Nov 2 (Reuters) - Canada’s North American Energy Partners Inc NOA.TO NOA.N, which provides resource services to oil and gas companies, posted a 44 percent drop in quarterly profit, hurt by wet weather conditions and project delays.

For the July-September quarter, the company earned C$2.4 million, or 6 Canadian cents a share, compared with C$4.3 million, or 12 Canadian cents a share, a year ago.

Excluding items, the company, which provides a range of mining and site preparation, piling and pipeline installation services primarily to Canadian oil sands companies, earned 4 Canadian cents a share.

Revenue rose 38 percent to C$234 million, helped by higher project development revenues from all its three operating segments.

Heavy construction and mining segment margins fell to 13 percent from 14.2 percent.

The company said it continues to expect improved operating conditions and performance in the latter part of the fiscal year, with demand for recurring services improving as all operating oil sands mines are likely to be back in full production for the first time in over a year.

In August, Canada’s biggest publicly traded construction company Aecon Group Inc ARE.TO announced plans to buy the assets of privately owned Cow Harbour Construction Ltd for about C$180 million, aiming to expand its presence in western Canada’s oil sands industry. Cow Harbour is a competitor to North American Energy.

North American’s shares, which have gained about 17 percent this year, closed at C$8.82 Tuesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi and Aftab Ahmed in Bangalore; Editing by Maju Samuel)

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