Red Deer-based High Arctic Energy Services Inc. (TSX:HWO) returned to the black in the second quarter despite reduced revenues.
The company, which provides specialized oilfield equipment and services, reported on Friday that it earned $3.2 million, or two cents per share, during the three-month period ended June 30. That’s up from a loss of $2.6 million, or six cents a share, for the same period in 2009.
High Arctic’s revenue in the second quarter was $22.4 million, as compared with $31.2 million a year earlier.
“I am pleased with our second quarter results,” said Bruce Thiessen, the company’s CEO, in a news release. “During the quarter we successfully concluded our restructuring transactions, which provides the company with greater financial stability.
“The improved performance tells me the changes we have introduced over the past 18 months are having a positive impact.”
Those restructuring transactions included the issuance of 169,280,257 common shares, which resulted in a gain of $2.7 million.
The news release said that oil and gas drilling activity in Canada was higher in the second quarter of 2010. It added that revenue from international operations was down, compared to 2009, as a result of only one drilling rig being active in Papua New Guinea.
High Arctic has domestic operations throughout Western Canada, with international operations primarily in Papua New Guinea.
In trading on the Toronto Stock Exchange on Friday, High Arctic shares closed unchanged at 17.5 cents.