November 10, 2010 / 11:41 AM / in 8 years

UPDATE 1-Canada's Savanna Energy posts Q3 profit

* Q3 EPS C$0.02, in line with market view

* Q3 rev more than doubles as C$104.8 mln

* Q3 cash flow C$0.21/shr

Nov 10 (Reuters) - Canada’s Savanna Energy Services Corp SVY.TO posted a quarterly profit, compared to a year-ago loss, helped by a recovery in the North American oil and gas industry.

Savanna, which has about 88 percent of its well servicing fleet and 78 percent of its drilling fleet located in Canada, said it expects to benefit from increased activity in the country over the next six months.

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.

July-September earnings were C$1.2 million, or 2 Canadian cents a share, compared with a loss of C$4.5 million, or 6 Canadian cents a share, a year ago.

Revenue more than doubled at C$104.8 million.

Analysts on average had expected the company to earn 2 Canadian cents a share, on revenue of C$104.3 million, according to Thomson Reuters I/B/E/S.

The oilfield services company, which operates throughout North America and is in the process of expanding its operations into Australia, reported higher operating cash flow of 21 Canadian cents a share, compared with 6 Canadian cents a share, a year ago.

Shares of the Calgary, Alberta-based company have gained about 10 percent in the last three months, against the broader S&P TSX Energy index’s .SPTTEN 7 percent rise.

Savanna shares closed at C$6.07 on Tuesday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Unnikrishnan Nair)

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