Monday, Ensign Energy Services Inc. (ESI.TO), reported a decline in profit for the second quarter, reflecting a 33% decline in revenue due to lower activities in the US and Canadian operations and higher stock-based compensation expenses.
Funds from operations of for the quarter declined to C$61.92 million or C$0.40 per share from C$82.53 million or C$0.53 per share a year ago.
Net income for the second quarter declined to C$13.21 million or C$0.09 per share from C$32.26 million or C$0.21 per share in the previous year. Second-quarter results include stock-based compensation expense of C$15.2 million.
On an adjusted basis, net income declined 41% to C$23.1 million or C$0.15 per share from C$39.2 million or C$0.26 per share.
After adjusting for foreign currency translation expense of C$62.47 million, the company reported a comprehensive loss of C$49.26 million, compared to an income of C$38.64 million last year.
The company said the lower results for the quarter reflect reduced industry activity levels and recessionary global economic conditions that have persisted through the first half of this year.
Total revenue for the quarter declined 33% to C$226.01 million from C$337.77 million last year due to poor fundamentals for natural gas.
By geography, revenue from Canada declined to C$52.11 million from C$108.38 million last year due to reduced demand for oilfield services as crude oil and natural gas commodity prices dropped and credit markets tightened. United States revenues declined to C$94.62 million from C$152.82 million a year ago, reflecting the overall reduction in active rig count in 2009. International revenues were C$79.28 million, up from C$76.57 million in the previous year due to the negative pressures of the global economic recession.
For the six-month period, funds from operations declined to C$143.93 million or C$0.94 per share from C$206.77 million or C$1.35 per share in the previous year. Net income declined to C$85.90 million or C$0.56 per share from C$114.06 million or C$0.74 per share a year ago. Total revenue for the period declined to C$626.43 million from C$809.96 million in the same period of the previous year.
The company declared a third quarter dividend of C$0.085 per common share, payable October 1, 2009 to all common shareholders of record as of September 21, 2009. During the six months ended June 30, 2009, the company declared a dividend of C$0.170 share.
Looking forward, the company expects the oilfield services industry in general to continue to be very weak as the global economy struggles to overcome recent recessionary trends.
ESI is currently trading at C$17.06, down 0.22 or 1.27% on a volume of 100K shares on the Toronto Stock Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.