November 10, 2010 / 6:02 PM / 7 years ago

UPDATE 1-Total Energy Q3 tops on higher drilling activity

* Q3 EPS C$0.30 vs est C$0.24

* Q3 revenue C$55.2 mln vs est C$54.4 mln

* Sees strong drilling activity in Q4

Nov 10 (Reuters) - Total Energy Services Inc’s TOT.TO third-quarter results breezed past estimates, helped by an uptick in drilling activity in western Canada.

Revenue at the Canadian energy company’s rentals and transportation services division tripled in the quarter, and the company forecast activity levels to be relatively strong during the upcoming winter drilling season.

Third-quarter income rose over four folds to C$9.7 million, or 30 Canadian cents a share, from C$2.2 million, or 8 Canadian cents a share, a year ago.

Total revenue also tripled to C$55.2 million.

Despite wet weather conditions that hampered field operations and continued weakness in natural gas prices, activity levels rose in all divisions, including contract drilling and gas compression services, the company said in a statement.

Analysts on average expected the company to earn 24 Canadian cents on revenue of C$54.4 million, according to Thomson Reuters I/B/E/S.

Revenue at the Calgary-based company were also driven in part by the acquisition of DC Energy Services in January, the statement said. Shares have since gained 60 percent in value.

They were down about 5 percent earlier in the day, but later recouped to trade down about 1 percent at C$11.13 in afternoon trade on Wednesday, on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore)

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