UPDATE 1-Ensign Energy Q4 earnings miss market estimates

* Q4 EPS C$0.15 vs est C$0.17

* Q4 rev C$278.7 mln vs est C$277.4 mln

* Sees lower contribution from Canadian operations in 2010

March 15 (BestGrowthStock) – Ensign Energy Services Inc (ESI.TO: )
reported quarterly earnings below analysts’ estimates, mainly
on weaker demand for oilfield services and lower margins.

For the fourth quarter, the company’s profit fell 69
percent to C$22.6 million, or 15 Canadian cents a share, from
C$73.8 million, or 48 Canadian cents a share, a year ago.

Revenue fell 39 percent to C$278.7 million, as weaker
commodity prices, global credit crunch and regional
geopolitical issues hurt demand for the company’s services.

Analysts on average expected the company to earn 17
Canadian cents a share, on revenue of C$277.4 million,
according to Thomson Reuters I/B/E/S.

The company said its gross margin was negatively impacted
by maintenance expenditures in preparation for the Canadian
winter drilling season and reduced margins from operations in
the United States.

Ensign, which has majority of its operations in Canada,
said financial contribution from its Canadian operations is
likely to be lower in 2010.

Ensign shares closed at C$15.03 Friday on the Toronto Stock

Stock Market News

(Reporting by Ashutosh Joshi in Bangalore; Editing by Ratul
Ray Chaudhuri)

UPDATE 1-Ensign Energy Q4 earnings miss market estimates