11/15/2012 02:09 EST | Updated 01/15/2013 05:12 EST

Poseidon Concepts shares down 62 per cent on quarterly results, 2012 guidance

CALGARY - Shares in Poseidon Concepts Corp. were decimated on the Toronto Stock Exchange on Thursday after company reported weaker quarterly results and lowered earnings and spending expectations for the remainder of the year.

The stock plummeted 62 per cent to $5 as 24.6 million shares traded hands.

The Calgary-based company (TSX:PSN), which handles fluids for clients in the oil and gas industry, reported third-quarter net income of $7.8 million, a steep drop from the $14.3 million it posted during the same period a year earlier.

"While we are disappointed in the third quarter's weaker financial results, this was a transformational quarter for our business," said CEO Lyle Michaluk.

"We remain optimistic both about our core tank rental business and the ability of the new products and services to attract new customers and generate incremental revenues. We are already experiencing strong customer enthusiasm in response to the new offerings."

On a per-share basis, the profits amounted to 10 cents per share, a drop from 22 cents per share.

But revenues rose to $41.1 million from $23.9 million a year earlier.

Poseidon lowered its 2012 target for earnings before interest, taxes, amortization and depreciation to between $140 million and $150 million for 2012, from an earlier expectation of $170 million.

The company said it is also reducing its capital spending 42 per cent to $35 million "due to the lower activity in some of our core operating regions, the pause in (exploration and production) spending heading into year-end, and a somewhat uncertain commodity price environment."