November 10, 2010 / 12:41 PM / 7 years ago

Trinidad Drilling Q3 profit lags market on lower dayrates

* Q3 breaks even/shr vs est EPS C$0.05

* Q3 rev up 28.4 percent, beats estimates

* Lower dayrates hurt Q3

Nov 10 (Reuters) - Canadian drilling equipment maker Trinidad Drilling Ltd TDG.TO posted a quarterly profit that lagged analysts’ estimates, hurt by lower dayrates at its barge drilling market and reduced activity levels in Mexico.

The company, whose July-September revenue -- up 28.4 percent to C$161.9 million -- beat analysts’ estimates as utilization levels increased, said it is beginning to see upward momentum in dayrates.

Drilling activity in Canada and the United States has risen from recessionary lows, bolstered by petroleum companies looking to tap unconventional natural gas deposits such as shale fields, and relatively stronger oil prices.

Most North American oil field services companies, including Schlumberger Ltd SLB.N, Halliburton Co HAL.N Precision Drilling Corp PD.TO, Ensign Energy Services Inc ESI.TO and Weatherford WFT.N, have posted profits ahead of expectations.

Quarterly net income was C$0.3 million ($298,200), or breakeven per share, compared with net loss of C$12.1 million, or 10 Canadian cents a share, last year.

Utilization rates at U.S. and international markets rose 11 percentage points over the last year.

Analysts on average were expecting earnings of 5 Canadian cents a share on revenue of C$159 million, according to Thomson Reuters I/B/E/S.

Barge drilling division dayrates at the company, with a market value of about C$624.8 million, fell 14 percent.

The Calgary, Alberta-based company’s shares, which have lost more than one fourth of their value this year, closed at C$5.12 on Tuesday on the Toronto Stock Exchange. ($1=1.006 Canadian Dollar) (Reporting by Aftab Ahmed in Bangalore; Editing by Unnikrishnan Nair) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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