November 12, 2010 / 6:14 PM / 8 years ago

UDPATE 1-Xtreme Coil Drilling Q3 profit plunges; shares fall

* Q3 breakeven per share vs C$0.05 last yr

* Q3 rev down 19 pct but beats Street

* Reduced drilling activity in Mexico still concern

* Shares down as much as 11 pct

Nov 12 (Reuters) - Xtreme Coil Drilling Corp (XDC.TO) reported a 92 percent fall in quarterly profit, hurt by lower activity in Mexico for at least two consecutive quarters, sending the drilling rig developer and operator’s shares down as much as 11 percent.

Though Xtreme Coil found some success in redeploying its Mexican rigs to the United States, it still managed to have only a 50 percent rig utilization rate — meaning only half of the 16 rigs it owns were contracted — year-to-date.

July-September net income was C$227,000 ($225,400), or breakeven per share, compared with C$2.7 million, or 5 Canadian cents a share, last year.

Excluding items, earnings were 6 Canadian cents a share, compared with analysts’ estimate of a loss of 1 cent a share.

Total revenue for the quarter fell 19 percent to C$21.3 million, but beat analysts’ estimates of C$17.65 million.

Despite all the slowness year-to-date, the company’s rig utilization rate improved to 75 percent during the early part of the current quarter.

Late in October, the company’s new-build rig, the 17th rig in its fleet, was awarded a contract to work in the Bakken development.

Shares of the company were down 6 percent at C$4.30 in afternoon trade on Friday on the Toronto Stock Exchange. They touched a low of C$4.06 earlier in the day.

Oil services firms like Xtreme were also tracking a 3 percent fall in oil prices CLc1.

$1=1.007 Canadian Dollar Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Maju Samuel

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