11/06/2012 06:45 EST | Updated 01/06/2013 05:12 EST

Pason Systems Q3 results from drilling rig technology fall but dividend going up

CALGARY - Pason Systems Inc. (TSX:PSI) is increasing its semi-annual dividend by nine per cent even though its third-quarter financial report shows weaker earnings.

The Calgary-based company will pay 24 cents per share on Jan. 2 to shareholders of record as of Dec. 14, an increase of two cents per share.

Pason provides instrumentation systems to land-based and offshore drilling rigs.

Its revenue was $93 million in the three months ended Sept. 30, up five per cent from $88.7 million a year earlier.

But net income fell to $19.3 milllion or 23 cents per diluted share, down from $28.5 million or 35 cents per share.

In addition, Pason's EBITDA (earnings before interest, taxes, depreciation and amortizaion) fell 10 per cent to $47.6 million or 58 cents per share and funds flow from operations slipped one per cent to $40.8 million or 50 cents per share.