Ensign Energy Q3 profit pushed down by impact of foreign exchange fluctuation

CALGARY – Ensign Energy Services Inc. (TSX:ESI) says its third-quarter net income was down 21 per cent from a year ago, as the Canadian drilling company felt the a negative impact from the strength of the U.S. dollar.

The Calgary-based company — which reports in Canadian dollars — said that a major reason for reduced profit was the strength of the U.S. dollar, which had a negative impact on debt held by Ensign’s Australian subsidiary.

Net income for the three months ended Sept. 30 dropped to $26.5 million, or 17 cents per common share, from $33.7 million or 22 cents per common share a year earlier.

Revenue was up seven per cent to $583.3 million from nearly $543 million.

Excluding the impact of foreign exchange rates and other items, Ensign’s adjusted net income totalled $36.1 million (24 cents per share), up three per cent from $34.9 million (23 cents per share).

The adjusted profit was a penny below the estimate of 25 cents per share and revenue was below the estimate of $599.9 million, according to data compiled by Thomson Reuters.