Total Energy Services Q3 profits cut to $2.2M from $6.1M sales drop 46 per cent

By The Canadian Press

CALGARY - Total Energy Services Inc. (TSX: TOT.TO) says its third-quarter profits were cut by $2.2 million from $6.1 million last year as Western Canada's natural gas producers experienced continued "challenging industry conditions."

For the quarter ended Sept. 30, net income at the a drilling services and gas compression company equalled eight cents a share, compared with 21 cents a share it generated in the same period last year.

Total's revenues fell 46 per cent to $20 million, pulled down by a 21 per cent decrease in sales in its gas compression services, the Calgary-based company announced Wednesday.

Its contract drilling services had a 14 per cent utilization rate during the most recent quarter as opposed to 65 per cent utilization rate last year when it booked revenues of $37.3 million.

The company said that the challenging drilling activity levels in Western Canada has forced it to focus on its unconventional resource plays in northeastern British Columbia.

Total Energy declared a three-cent dividend on record Sept. 30. The dividend was paid Oct. 30.