Drilling firm Ensign Energy shares fall as Q2 net loss exceeds forecasts

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CALGARY — Shares in Ensign Energy Services Inc. fell by as much as 6.8 per cent after it reported a second-quarter net loss of $31.7 million or 20 cents per share, compared with a net loss of $36.7 million or 23 cents a year earlier.

The Calgary-based drilling company’s revenue jumped 44 per cent to $378 million from $263 million, mainly due to its acquisition late last year of rival Trinidad Drilling Ltd.

The results missed analyst expectations of a net loss of $25.7 million or 13 cents a share on revenue of $419 million in the three months ended June 30, according to financial markets data firm Refinitiv.

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Ensign’s biggest boost to year-over-year revenue came from the United States, where it rose by 77 per cent to $261 million, despite softening demand, to account for 69 per cent of the total. It has 134 marketed rigs in the U.S.

In contrast, its Canadian revenue rose by just 11 per cent to $51 million — despite the addition of 68 Trinidad rigs to take its fleet to 118 marketed rigs — accounting for 14 per cent of the total.

International revenue was down slightly at $66 million but still exceeded the Canadian contribution.

“The integration of Trinidad into Ensign has now been largely completed with the full amalgamation taking place on April 1,” said Ensign president Bob Geddes.

“We continue to focus on realizing the previously announced $40 million of cost savings which primarily relate to the elimination of duplicate costs and facilities.”

 

Companies in this article: (TSX:ESI)

The Canadian Press

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