November 9, 2010 / 8:06 AM / 7 years ago

REFILE-UPDATE 2-Trican Well Service sees strong demand in 2011

(Refiles to fix typo in paragraph 1)

* Q3 EPS C$0.37 vs est C$0.25

* Q3 Rev C$407.8 mln vs est C$355.8 mln

* Sees strong demand from Canada, US in 2011

* 2011 capital budget set at double 2010 budget (Recasts, adds outlook, capex details, background)

Nov 9 (Reuters) - Oilfield services provider Trican Well Service Ltd TCW.TO said it expects the strong demand in its North American operations, which helped it post strong third-quarter profit, to continue next year.

Trican, which also operates in Russia and North Africa, more than doubled its capital budget for next year to C$373 million and said that most of it would go to its North American markets to feed the strong demand in oil and liquids-rich plays like the Marcellus shale.

Firmer oil prices and brisk drilling activity for natural gas in shale rock formations in the United States and Canada have buoyed the oil field services industry, which has suffered from a big drop in Gulf of Mexico drilling since BP Plc’s BP.L oil-well blowout in April.

Last week, Trican’s peer Calfrac Well Services Ltd CFW.TO posted higher third-quarter results and signalled a pick-up in horizontal drilling activity in Canada and the U.S.

Trican’s third-quarter revenue more than doubled to C$407.8 million, with more than 60 percent from horizontal drilling and the rest from oil and liquids rich plays.

The average number of active drilling rigs in Canada, its largest market, rose 87 percent. Growth in horizontal drilling in the United States led to better pricing and higher margins.

Calgary, Alberta-based Trican swung to profit of C$53.7 million in the July-September quarter from a loss of C$7.4 million a year ago.

Its earnings of 37 Canadian cents were 12 Canadian cents higher than analysts’ expectations, marking the fourth straight quarter that it has beaten market estimates.

Shares of the company closed at C$19.45 -- their highest value in more than two years -- Monday on the Toronto Stock Exchange. They have gained 31 percent since announcing an expansion into the Marcellus shale in July. (Reporting by S. John Tilak and Savio D‘Souza in Bangalore; Editing by Hans Peters and Gopakumar Warrier)

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