BUSINESS

Horizon North Logistics posts 114 per cent rise in Q2 profit on oil sands projects

08/01/2012 08:44 EDT | Updated 10/01/2012 05:12 EDT
CALGARY - Energy sector services company Horizon North Logistics Inc. (TSX:HNL) is reporting a 114 per cent rise in second-quarter profit from the year-earlier period on a sharp rise in revenues from oil sands related projects.

The Calgary-based company says total comprehensive income was $21.9 million for the quarter ended June 30, or 20 cents per diluted share, compared to $10.2 million, or 10 cents per share, year over year.

Revenue was up 61 per cent to $139.5 million compared to $86.6 million in the same period of 2011.

The average analyst estimate had been for earnings of 13 cents per share on $110 million in revenue, according to Thomson Reuters.

"Oil sands development and related activities continue to be the main driver of Horizon's growth, with 64 per cent of consolidated second quarter revenues driven from these activities," the company said in a release.

"With robust oil sands development expected to continue, Horizon will focus the majority of its capital deployment in support of oil sands development. As a result of the focus on oil sands development seasonality in Horizon's revenue has been significantly reduced."

Horizon North provides resource companies with mobile structures, camp management and catering and other services and northern marine services.

The Calgary-based company has more than 1,000 employees and offices and manufacturing plants in Alberta and British Columbia and in Tuktoyaktuk, Inuvik and Norman Wells, in the Northwest Territories.

Shares in Horizon, which reported after markets closed, were up four cents to $6.14 on the Toronto Stock Exchange on Wednesday.