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Ensign Energy Q4 profit contracts 8%; reflects slowdown in the oilpatch

CALGARY – Ensign Energy Services Inc. (TSX:ESI) is reporting an eight per cent decrease in fourth-quarter earnings, reflecting a slowdown in the oilpatch.

The Calgary-based oilfield services company says net income fell to $48.5 million or 32 cents per share compared with $52.6 million or 34 cents in the same period of 2011.

Revenue for the three months ended Dec. 31 was $530.1 million, also down eight per cent, from $578 million in the same 2011 period. Funds from operations were $117.1 million or 77 cents per common share, a 17 per cent decrease from $140.5 million or 92 cents in the fourth quarter of 2011.

“The financial results for the three and twelve months . . . reflect what was a mixed year overall,” Ensign said in its earnings report.

“North American oilfield services, particularly in Canada, experienced a strong start in 2012. However, a slowdown towards the latter half of the year, as customers reacted to unfavourable price differentials for Canadian commodities, a continuing oversupply of natural gas and uncertainty in global economic conditions, weakened activity levels and financial contributions in the last half of the year.”

For the full year, Ensign reported a two per cent increase in net income to $212.5 million or $1.42 per share as revenue grew 16 per cent overall to $2.19 billion.

That compared with net profits $212.4 million, or $1.39 per share on revenue of $1.89 billion.

Ensign Energy Services Inc. is a global provider of land-based drilling and well servicing services for the crude oil, natural gas and geothermal operators. Additional services include directional drilling, rental equipment, managed pressure drilling, and production flow back units.