Total Energy Services Inc. (TSE:TOT), which provides rental equipment and gas compression services, wavered between gains and losses as it reported a slight increase in fourth-quarter profit that beat analysts' estimates on disappointing revenue. It also hiked its dividend.
Total Energy was down 3 percent at C$20.22 at 2:02 p.m. in Toronto. Earlier, it rose to as high as C$21.03. The stock has gained 47 percent in the past 12 months, but is down 1.4 percent this year.
Net income slightly rose to C$10.7 million, or 34 Canadian cents, in the three months ended Dec. 31, from C$10.5 million, or 34 Canadian cents, in the year-earlier period, the Calgary, Alberta-based company said in a statement today. That beat analysts' estimate of 32 Canadian cents a share.
Revenue rose to C$86.9 million, from C$78.4 million. Analysts were looking for revenue of C$88.9 million.
The company's cash flow, a key indicator of its ability to pay for drilling and new projects, increased to C$23.9 million, or 69 Canadian cents a share, from C$22.1 million, or 64 Canadian cents a share.
Total Energy's board increased quarterly dividend by a penny per share to 6 Canadian cents per common share beginning for the quarter ending March 31.
Looking forward, Total Energy said Western Canadian drilling activity will continue to remain robust during the first quarter.
Total Energy said continued strength of oil prices, recent near term strength in natural gas prices and a lower Canadian dollar relative to the United States dollar provide support for relatively high Canadian drilling activity levels.
It said that current expectations are that well completion and work over activity will increase as winter drilling programs are completed.