Poseidon says its will restate earnings for three quarters, shares plunge 70%

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CALGARY - Poseidon Concepts Corp. (TSX:PSN) shares plunged 70 per cent Thursday after the oilfield services company said it will restate its financial results for the first, second and third quarters of 2012.

The Calgary-based company said approximately $95 million to $106 million of the $148.1 million in revenue for the nine months ended Sept. 30 should not have been recorded as revenue.

Further, Poseidon said that as a result of recording the foregoing revenues, approximately $94 million to $102 million of its $125.5 million accounts receivable as of Sept. 30 should not have been recorded as accounts receivable.

Poseidon was the most heavily traded issue on the Toronto Stock Exchange on Thursday, with a volume of 15.58 million shares. The stock closed down 62 cents, or 69.66 per cent to 27 cents.

That's down 98 per cent from its 52-week high of $16.87

"The company advises investors that they should no longer rely on the financial statements as well as the corresponding management's discussion and analysis," it said in a statement.

"Further, the company advises that all previous guidance with respect to the company's business should no longer be relied upon."

In late December, Poseidon suspended its dividend, replaced its CEO and initiated a board review of its management and business processes.

Prior to the announcement, the company had been paying a monthly dividend of nine cents per share.

The company rents large tanks used by the oil and gas industry to hold fracturing fluids and other liquids.

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