Soggy conditions contributed to a drop in activity and earnings for High Arctic Energy Services Inc. (TSX: HWO) in the second quarter.
The Red Deer-based oilfield equipment and service provider reported a net loss of $100,000 for the three months ended June 30, as compared with net earnings of $2.5 million for the same period in 2010. This translated into zero earnings per share, down from eight cents a year earlier.
“The wet weather in Western Canada set back many of the well site projects of our customers and prevented the movement of our equipment into many areas in the quarter,” said Bruce Thiessen, High Arctic’s CEO, in a news release.
The company’s 2010 earnings for the second quarter included a one-time gain of $2.7 million related to restructuring transactions. Excluding that item, the 2011 figure was actually $100,000 higher.
High Arctic’s second quarter revenues were up 11 per cent from last year, moving to $24.9 million from $22.4 million.
The company said its operations in Papua New Guinea posted a 16 per cent jump in revenues during the second quarter, while domestic revenue dropped by 14 per cent.
For the six months ended June 30, High Artic’s revenue was $60.8 million and its net earnings were $7.2 million, or 7.2 cents a share. That compares with revenue of $57 million, net earnings of $7 million and per-share ernings of 35 cents for the same period in 2010.
Thiessen expressed optimism about High Arctic’s outlook going forward.
“We anticipate increased Canadian activity in the second half, based on indications from our customers and the pent up demand from the second quarter.”
Thiessen pointed out that High Arctic had reduced its net debt to $600,000 as of the end of June, as compared with a figure of $4.7 million at the end of last year.
High Arctic is active in drilling, completion and workover operations, and provides other services and equipment. It has operations throughout Western Canada and in Papua New Guinea.
In trading on the Toronto Stock Exchange on Friday, High Arctic shares closed at $1.50, down five cents.