CALGARY – Trinidad Drilling Ltd. (TSX:TDG) reported sharply higher net profits in the latest quarter as a recovery in the energy drilling sector helped the oilfield services company generate higher revenues.
Trinidad said Wednesday it earned $16 million or 13 cents a share in the first quarter ended March 31. That compared with a loss of $1 million or one cent in the same quarter last year.
Trinidad’s three-month revenues rose 27 per cent to $216.1 million from $170.1 million as conditions in the energy drilling sector improved.
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“Industry conditions have been steadily improving for the last six to nine months and we are now beginning to see that impact flow through to increased profitability for Trinidad,” said Lyle Whitmarsh, the company’s president and CEO.
“Activity levels are high both in Canada and the U.S., and demand for modern, high performing equipment like ours is strong. We are now seeing the benefit of these conditions flow through to higher dayrates across all areas of our operations. Our customers are eager to get back to their development plans in Canada after break up finishes and to continue drilling in the U.S. and early indications for the remainder of 2011 are looking very promising.”
Trinidad said its net earnings were boosted by solid revenues as well as a decline in foreign exchange losses. That was partly offset by higher depreciation costs reflecting the increased activity levels, increased stock-based compensation expenses and higher income taxes.
Trinidad operates in the drilling, well-servicing, coring and barge-drilling sectors of the North American oil and natural gas industry with operations in Canada, the United States and Mexico.
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