CALGARY — Shares in Ensign Energy Services Inc. fell after it cut its dividend in half due to what it said was prevailing industry conditions as it reported a third-quarter loss of $37.8 million.
The oilfield services company saw its shares fall 27 cents or about 10 per cent to $2.41 in trading on the Toronto Stock Exchange after falling as low as $2.29.
The drop came after Ensign said it will pay a quarterly dividend of six cents per share, down from 12 cents, to allow it “pursue alternative uses of available cash.”
The company also ended its dividend reinvestment plan.
The reduced payment to shareholders came as the company said its loss in its latest quarter amounted to 24 cents per share compared with a loss of $32.8 million or 21 cents per share in the same quarter last year.
Revenue in the quarter totalled $393.5 million, up from $288.7 million in the third quarter of 2018.
Ensign acquired an 89.3 per cent stake in Trinidad Drilling Ltd. in the fourth quarter of 2018 and the remaining stake in the first quarter of 2019.
This report by The Canadian Press was first published Nov. 12, 2019.
Companies in this story: (TSX:ESI)
The Canadian Press