Business
Ensign Energy Services Inc. Reports 2010 Second Quarter Earnings
Ensign Energy Services Inc. Reports 2010 Second Quarter Earnings
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\n\n\n\n Aug. 9, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nCALGARY, Aug. 9 /CNW/ -\n\nOverview\n\nEnsign Energy Services Inc. (the "Company") recorded revenue for the three months ended June 30, 2010 of $257.6 million, a 14 percent increase from the $226.0 million recorded for the second quarter of the prior year. The Company recorded revenue of $610.4 million for the six months ended June 30, 2010, a three percent decrease from revenue of $626.4 million for the six months ended June 30, 2009. The Company's net income for the second quarter of 2010 was $9.3 million ($0.06 per share), a decline of 30 percent compared with net income of $13.2 million ($0.09 per share) for the second quarter of 2009. Net income for the six months ended June 30, 2010 totalled $49.3 million ($0.32 per share), a decrease of 43 percent from net income of $85.9 million ($0.56 per share) recorded in the first six months of 2009.\nIn spite of overall increased levels of operating activity in the second quarter and first half of 2010 compared to the corresponding periods of the prior year, the Company's financial results declined compared to 2009. The reduced financial results are a result of lower revenue rates in certain geographic segments, temporarily higher operating costs associated with the deployment of additional equipment and the seasonality impact of spring conditions in Canada that limit or prevent the movement of oilfield services equipment. Additionally, the reported results from the Company's United States and international segments were negatively impacted by the stronger Canadian dollar compared to the prior year. In the six months ended June 30, 2010, the Canadian dollar strengthened by approximately 14 percent compared to the United States dollar when compared to the same period in 2009.\nGross margin decreased in the second quarter of 2010 to 23.2 percent compared to 31.0 percent recorded in the second quarter of 2009. For the...